Sales of existing homes were trending upward in February, according to a report released Thursday by the National Association of Realtors. Sales of existing single-family homes, townhomes, condominiums and co-ops fell 3.3% annually to a seasonally adjusted 4.38 million units from 4.53 million units in February 2023. Although sales failed to escape the annual slump, they rose 9.5% from January, marking the most significant monthly gain in the next year.
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Existing home sales trended upward in February, according to National Association of Realtors report released on thursday.
Sales of existing single-family homes, townhomes, condominiums and co-ops fell 3.3% annually to a seasonally adjusted 4.38 million units from 4.53 million units in February 2023. Although sales failed to escape the annual slump, they rose 9.5% from January, marking the most significant monthly gain in the next year.
Lawrence Yun
NAR Chief Economist Lawrence Yun said the sequential increase was due to increased inventory, which gives homebuyers more options as the spring homebuying season begins.
The total housing inventory increased by 5.9% from the previous quarter and increased by 10.3% year-on-year to 1.07 million units. At the current sales pace, unsold inventory will last 2.9 months, an increase of 11.5% from February 2023 (2.6 months).
“Additional housing supply will help meet market demand,” he said in a written statement. “Demand for housing has been growing steadily due to population and employment growth, although the actual timing of purchases will depend on prevailing mortgage rates and wider inventory selection.”
The median home price continued to rise in February, with an annual increase of 5.7% to $384,500.
Lisa Sturtevant | Photo: Bright MLS
Existing home sales in February provide some hope for the housing market in the coming months, but it doesn’t eliminate uncertainty about mortgage rates and affordability, said Dr. Lisa Sturtevant, chief economist at Bright MLS.
“The uptick in sales activity from January to February is a good sign, but there is some uncertainty in the housing market as spring approaches,” she said in an email to Inman. “The Fed may delay a rate cut until Over the summer, that suggests mortgage rates won’t drop much in the first half of the year.”
Sturtevant said consumers “seem to be adjusting to the new normal of rising mortgage rates.” However, she said eight consecutive months of annual price increases would make it harder for buyers to accept further rate hikes.
“House prices are now more than 40% higher than before the outbreak, and interest rates are almost double what they were then, and the average monthly payment for homebuyers has increased by nearly 90%,” she said.
Danielle Hale | Chief Economist, Realtor.com
Danielle Hale, chief economist at Realtor.com, said the latest housing market report on existing and pending home sales shows that “home sales improvement going forward may not be linear” as consumers try to adjust to mortgage rates. and other economic factors to determine purchase timing. factor.
However, she said the market still offers plenty of opportunities, especially for homebuyers.
“With prices still rising, the number of homes on the market remaining limited and equity remaining high, homeowners choosing to sell in 2024 will face relatively healthy market conditions,” she said. “However, those looking to take advantage of the spring market Those in the best conditions would do well to start planning now.”
Email Marianne McPherson
