Unfortunately for buyers, so did prices
of ConsumerAffairsSales of existing homes rose faster than expected in February. The National Association of Realtors reports sales were up 4.2% from January but down 1.2% from February 2024.
"Home buyers 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."
Total housing inventory at the end of February was 1.24 million units, up 5.1% from January and 17%more than one year ago. Unsold inventory sits at a 3.5-month supply at the current sales pace, identical to January and up from 3.0 months in February 2024.
While more inventory is a positive for buyers, those homes cost more. The median existing home price for all housing types in February was $398,400, up 3.8% from one year ago. All four U.S. regions registered price increases. While that might not help buyers, Yun said its good news for sellers.
"Each one percentage point gain in home price translates into an approximately $350 billion increase in housing equity for American property owners," Yun said.
"That means a gain of nearly $1.3 trillion in home value appreciation at a time when the current stock market is undergoing a correction. Moreover, the ongoing housing shortage, coupled with historically low mortgage default rates, implies a solid foundation for home values."
Sales may also be increasing in March
Economists at real estate platform Zillow say buying activity is likely increasing this month, crediting a small decline in mortgage rates with spurring buyers interest.
Zillow said the best housing markets for buyers this spring should be Miami, New Orleans, Jacksonville, Tampa and Memphis. The best markets for sellers are Buffalo, San Jose, San Francisco, Hartford and Boston.
Skylar Olsen, Zillows chief economist, says affordability is still a massive challenge for those who have been waiting to buy a home. But she added that everytime mortgage rates dip it seems to bring both buyers and sellers to the market.
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Posted: 2025-03-20 15:35:41
