Home sales climbed in February as more homes came on the market.
Total existing-home sales — including single-family homes, townhomes, condominiums and co-ops — increased 4.2% from January to a seasonally adjusted annual rate of 4.26 million in February. Year-over-year, sales slid 1.2%, down from 4.31 million in February 2024.
“Home buyers are slowly entering the market,” National Association of Realtors Chief Economist Lawrence Yun said. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”
Total housing inventory at the end of February was 1.24 million units, up 5.1% from January and 17% from one year ago (1.06 million). Unsold inventory sits at a 3.5-month supply at the existing sales pace, identical to January and up from 3 months in February 2024. A six-month supply is generally considered a balanced market.
“On a technical note, raw sales in February were down 5.2% from last year, which was a leap year with one extra day of business,” Yun said. “However, after adjusting for this effect, combined with the winter seasonal factors, the momentum for home sales is flashing encouraging signs.”
The median existing-home price for all housing types in February was $398,400, up 3.8% from one year ago ($383,800). All four U.S. regions registered price increases.
The 30-year fixed-rate mortgage averaged 6.65% as of March 13, according to Freddie Mac. That’s up from 6.63% one week ago, but down from 6.74% one year ago.
