Kevin Sears President | Official website
The National Association of Realtors announced on March 10 that existing-home sales increased by 1.7% in February, reaching a seasonally adjusted annual rate of 4.09 million units. The report also showed a 2.4% increase in unsold inventory, totaling 1.29 million units or a 3.8-month supply.
This data is significant as it provides insight into the current state of the housing market, which affects buyers, sellers, and real estate professionals nationwide. The information helps stakeholders understand trends in home sales, prices, and inventory levels.
According to the report, year-over-year existing-home sales declined by 1.4%, while the median existing-home price rose slightly by 0.3% to $398,000 compared to last year. Affordability improved for the eighth consecutive month with NAR’s Housing Affordability Index rising to 117.6 in February from 117.1 in January and up from 103.1 a year ago—the highest level since March 2022.
"Housing affordability is improving, and consumers are responding," said NAR Chief Economist Dr. Lawrence Yun. "Still, there is a long way to go to return to pre-pandemic levels of transaction activity. There are more than 6 million more jobs than in 2019, yet home sales per year are down by one million." Yun also said, "Despite the modest gain in home sales, actual housing demand remains muted relative to wage growth and job gains." He added that "wage growth is now outpacing home price growth by almost four percentage points" and noted that mortgage rates are lower compared to a year ago.
Yun further commented on inventory: "Inventory is growing, but sluggishly... If demand picks up notably in the coming months and outpaces supply growth, home prices will inevitably rise. That is why increasing supply is so important to help limit home price growth, improve housing affordability, and boost transactions." Regional data showed increases in month-over-month sales for the Midwest (up 1.1%), South (up 1.6%), and West (up 8.2%), while the Northeast saw a decrease (down 6%).
The National Association of Realtors supports diversity and inclusion within the real estate profession according to its official website. The organization encompasses around 1,200 local boards and 54 state and territorial associations according to its official website. It works to empower real estate professionals in preserving, protecting and advancing rights to real property according to its official website. The association delivers resources such as research, statistics, advocacy efforts, education programs and news updates for members according to its official website.
As the leading trade association for real estate according to its official website, NAR maintains headquarters in Chicago with an additional office located in Washington D.C. according to its official website.
Looking ahead, NAR's Pending Home Sales Index for February will be released on March 17 with Existing-Home Sales data for March scheduled for April 13.
