Existing home sales increased 4% in February, reaching a seasonally adjusted annual rate of 4.26 million units, according to analysis by the National Association of Home Builders (NAHB) based on data from the National Association of Realtors (NAR). This marks the second-highest sales level since March 2024.
The February sales total reflects a 1% decline compared to the same period last year. The South saw a 4% increase, while the West recorded a stronger rise of 13%. Sales fell 2% in the Northeast and remained unchanged in the Midwest. Image: NAHB
The inventory of existing homes improved to 1.24 million units in February, rising from 1.18 million in January and marking a 17% increase from a year ago. This inventory level represents a 3.5-month supply, remaining below the balanced market range of 4.5 to 6 months.
The median sales price for all existing homes in February was $398,400, reflecting a 4% increase compared to February 2024. Condominium and co-op prices rose 3.5% to $355,100.
First-time buyers accounted for 31% of February sales, up from 28% in January and 26% in February 2024. All-cash transactions made up 32% of sales, rising from 29% in January but slightly below the 33% recorded a year ago. Image: NAHB
Homes remained on the market for an average of 42 days in February, up from 41 days in January and 38 days in February 2024.
The Pending Home Sales Index fell from 74.0 in December to an all-time low of 70.6 in January, reflecting ongoing affordability challenges amid elevated home prices and mortgage rates. According to the NAHB analysis of NAR data, pending sales were 5% lower compared to a year earlier.
