Existing home sales rose 4.2% in February to a seasonally adjusted annual rate of 4.26 million but were still down 1.2% from last year’s home sales rate of 4.31 million, according to the National Association of Realtors (NAR).
Total housing inventory reached 1.24 million units at the end of February, up 5.1% from January and 17% from one year ago. Unsold inventory remained at a 3.5-month supply, the same as in January and an increase from a 3.0-month supply one year ago.
Home prices were up slightly from January, with the median price for existing homes in February sitting at $398,400, up from $396,900 in January. February prices were up 3.8% from one year ago when the median price was $383,800. The increase marks the 20th consecutive month of year-over-year price increases.
“Homebuyers are slowly entering the market,” said NAR Chief Economist Lawrence Yun in a statement. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”
Yun pointed out that February sales were down 5.2% from last year, which was a leap year, so there was one extra day of business in the month last year. However, after adjusting for the extra day and winter conditions, Yun stated that “the momentum for home sales is flashing encouraging signs.”
