According to the National Association of REALTORS® (NAR), US existing-home sales grew 3.1% month-over-month to a seasonally adjusted annual rate of 4.00 million, exceeding economists’ expectations and marking the strongest sales pace since August 2023. Falling interest rates late last year, coupled with a recent uptick in inventory, helped existing-home sales to climb following last month’s decline, with monthly gains reported in the Midwest, South, and West regions.
New listings increased 19.9% for residential homes and 18.2% for townhouse/condo homes. Pending sales increased 16.5% for residential homes and 6.1% for townhouse/condo homes. Inventory increased 3% for residential homes and 24.1% for townhouse/condo homes.
Median sales price remained flat at $250,000 for residential homes but increased 10% to $220,000 for townhouse/condo properties. Days on market decreased 2.3% for residential homes but increased 21.6% for townhouse/condo homes. Months supply of inventory increased 7.1% for residential homes and 36.4% for townhouse/condo homes.
Total inventory heading into February stood at 1.01 million units, a 2% increase from the previous month and a 3.1% increase from the same time last year, for a three months’ supply at the current sales pace, according to NAR. Although buyers may find additional options in their home search, inventory remains below the five to six months’ supply of a balanced market, and demand is exceeding supply. As a result, existing-home sales prices have continued to rise, climbing 5.1% year-over-year to $379,100.
