Quick Reference Highlights:
- National Overview: Existing-home sales surged 4.2% month-over-month in February, but slightly decreased 1.2% year-over-year. The national median home price climbed 3.8% annually, hitting $398,400, marking 20 straight months of price increases. Inventory rose 5.1% monthly.
- Regional Variances: The Northeast and South saw monthly sales growth, while the Midwest remained stable and the West experienced a significant surge. Year-over-year, the Northeast and Midwest saw sales increases, the South saw a decrease, and the West was unchanged. Price increases were seen in all four regions, with the Northeast experiencing the largest rise.
Full Article:
WASHINGTON (March 20, 2025) – Existing-home sales experienced a notable uptick in February, according to the National Association of REALTORS® (NAR). This surge indicates a potential shift in buyer activity, though regional variations and year-over-year comparisons reveal a more nuanced picture.
Total existing-home sales – encompassing single-family homes, townhomes, condominiums, and co-ops – increased by 4.2% from January, reaching a seasonally adjusted annual rate of 4.26 million. However, when compared to February 2024, sales dipped slightly by 1.2% (down from 4.31 million).
“Home buyers are slowly entering the market,” stated NAR Chief Economist Lawrence Yun. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”
The total housing inventory at the end of February was 1.24 million units, a 5.1% increase from January and a substantial 17% rise from the previous year’s 1.06 million. The unsold inventory represents a 3.5-month supply at the current sales pace, matching January’s level but up from 3.0 months in February 2024.
“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 added. “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, a 3.8% increase from February 2024’s $383,800. All four U.S. regions recorded price increases, contributing to a significant boost in homeowner equity.
“Each one percentage point gain in home price translates into an approximately $350 billion increase in housing equity for American property owners,” Yun said. “That means a gain of nearly $1.3 trillion in home value appreciation at a time when the current stock market is undergoing a correction. Moreover, the ongoing housing shortage, coupled with historically low mortgage default rates, implies a solid foundation for home values.”
Market Dynamics:
- Properties remained on the market for an average of 42 days in February, according to the REALTORS® Confidence Index.
- First-time buyers accounted for 31% of sales, a notable increase from previous months and years.
- Cash sales represented 32% of transactions, while individual investors or second-home buyers made up 16% of purchases.
- Distressed sales remained at 3% of all transactions.
- The 30-year fixed-rate mortgage averaged 6.65% as of March 13.
Regional Breakdown:
- Northeast: Sales decreased 2.0% monthly but increased 4.2% annually. Median price: $464,300 (up 10.4% annually).
- Midwest: sales were unchanged monthly, and increased 1.0% annually. Median price: $295,500 (up 5.8% annually).
- South: Sales increased 4.4% monthly but decreased 4.0% annually. Median price: $358,800 (up 1.9% annually).
- West: Sales surged 13.3% monthly, and were unchanged annually. Median price: $614,600 (up 3.6% annually).
Single-Family and Condo/Co-op Sales:
- Single-family home sales rose 5.7% monthly, with a median price of $402,500.
- Condo/co-op sales declined 9.8% monthly, with a median price of $355,100.
