by Prices continue to rise further, pricing many younger consumers out of the market
WASHINGTON — February existing home sales declined slightly from February 2024 but rose from January levels, according to figures released by the National Association of Realtors on Thursday.
The NAR reported that February sales totaled 4.26 million, down 1.2% from 4.31 million in February 2024. Sales rose 4.2% from January, the report said.
Meanwhile, prices rose even further, pricing many consumers out of the market, particularly with interest rate levels over 6.5%. The report said that the median existing home sales price rose to $398,400, up 3.8% from February 2024, which the NAR said was the 20th consecutive month of year-over-year increases. All four regions of the country also registered increases, the NAR said.
The figures include sales of single-family homes, townhomes, condominiums and co-ops. Single-family homes represented 3.89 million, or 91% of the total, and were down .3% from February 2024 and up 5.7% from January. The median single-family home price was $402,500, up 3.7% from last year.
Meanwhile, existing townhome, condominium and co-op sales totaled 370,000 units, down 9.8% from February 2024 and January. The median existing price in this segment was $355,100, up 3.5% from $343,000 in February 2024.
While the value of existing homes is pricing many buyers out of the market, the NAR put a positive spin on the increase.
“Each one percentage point gain in home price translates into an approximately $350 billion increase in housing equity for American property owners,” said Lawrence Yun, NAR chief economist, noting that this means a $1.3 million gain in home values, at a time when the stock market is undergoing a correction. “Moreover, the housing shortage, coupled with historically low mortgage default rates, implies a solid foundation for home values.”
But there is no shortage according to the NAR’s own data. The total housing inventory registered at the end of February was 1.24 million units, up 17% from 1.06 million a year ago and up 5.1% from January.
By region, the activity was as follows:
+ In the Northeast, existing home sales totaled 500,000, up 4.2% from February 2024 and down 2% from January. The median home price in the region was $464,300, up 10.4% from a year earlier.
+ In the Midwest, existing home sales totaled 1 million, up 1% from February 2024 and flat from January. The median price was $295,500, up 5.8% from February last year.
+ In the South, there were 1.91 million existing home sales in February, down 4% from February 2024 and up 4.4% from January. The median existing home price was $358,800, up 1.9% from February 2024.
+ In the West, existing home sales totaled 850,000, level from February 2024 and up 13.3% from January. The median price in the region was $614,600, up 3.6% from February 2024.
Other takeaways from the report are as follows:
+ Properties typically remained on the market for 42 days in February, up from 38 days in February 2024 and up from 41 days in January.
+ First-time buyers represented 31% of sales in February, up from 26% in February 2024 and up from 28% in January.
+ Cash sales represented 32% of transactions in February, down from 33% in February 2024 and up from 29% in January. Individual investors and second-home buyers, who represent many cash sales, purchased 16% of homes in February, down from 21% from February 2024 and down from 17% in January.
+ Distressed sales including foreclosures and short sales represented 3% of sales in February, level with February 2024 and January.
+ The 30-year fixed rate mortgage averaged 6.65% as of March 13, down from 6.74 a year ago, but up from 6.63 a week prior.
