US existing-home sales improved for the second month in a row, jumping 9.5% to a seasonally adjusted annual rate of 4.38 million units, exceeding economists’ expectations and marking the largest monthly gain in a year, according to the National Association of REALTORS® (NAR). The rebound in home sales comes amid fluctuating mortgage rates and elevated sales prices, indicating there is plenty of buyer demand heading into the spring selling season.
New listings decreased 8.9% for residential homes but increased 10.7% for townhouse/condo homes. Pending sales decreased 0.8% for residential homes but increased 17.2% for townhouse/condo homes. Inventory decreased 0.5% for residential homes but increased 11.3% for townhouse/condo homes.
Median sales price increased 3.3% to $268,800 for residential homes and 4.8% to $215,000 for townhouse/condo homes. Days on market decreased 8.3% for residential homes but increased 6.5% for townhouse/condo homes. Months supply of inventory increased 7.1% for residential homes and 23.1% for townhouse/condo homes.
The recent surge in home sales was likely due to a dip in mortgage rates in December and an increase in housing supply nationwide. According to NAR, total inventory grew 5.9% month-over-month and 10.3% year-over-year to 1.07 million units, for a 2.9 months’ supply at the current sales pace. Buyer demand remains robust, and the limited supply of inventory helped push the median existing-home sales price up 5.7% year-over-year to $384,500, the eighth consecutive month of annual price increases.
