Jump in Existing-Home Sales Snaps 12-Month Streak

Volatility in existing home sales continued in February, as the National Association of Realtors reported a 14.5% jump in February to a seasonally adjusted annual rate of 4.58 million, snapping a 12-month slide.

The figures represented the largest monthly percentage increase since July 2020 (+22.4%). Compared to one year ago, however, sales retreated by 22.6%.

NAR Chief Economist Lawrence Yun said that consumers conscious of changing mortgage rates are taking advantage of any rate declines.

“Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs,” Yun said in prepared remarks. “Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”

Properties typically remained on the market for 34 days in February, up from 33 days in January and 18 days in February 2022. Fifty-seven percent of homes sold in February were on the market for less than a month.

The median existing-home sales price decreased 0.2% from the previous year to $363,000, snapping a streak of 131 consecutive months of year-over-year increases, the longest on record.

First-time buyers are fewer than at any time since NAR began tracking buyer profiles in 1981 with the annual share at 26%. They represented 27% of sales in February, down from 31% in January and 29% in February 2022.