Housing Market Update:
In the United States, the National Association of REALTORS® (NAR) reported a 3.1% month-over-month increase in existing-home sales, reaching a seasonally adjusted annual rate of 4.00 million. This surpassed economists’ expectations and marked the strongest sales pace since August 2023. The rise in sales was attributed to falling interest rates late last year and an increase in inventory. The Midwest, South, and West regions all reported monthly gains in existing-home sales.
The data also showed significant increases in closed sales for detached and attached homes, with a 9.9% increase for detached homes and a 24.9% increase for attached homes. However, pending sales decreased by 6.4% for detached homes and 11.2% for attached homes.
Furthermore, the median sales price saw substantial growth, with a rise of 18.2% to $1,122,500 for detached homes and 9.6% to $740,000 for attached homes. Days on the market decreased by 37.2% for detached homes and 30.6% for attached homes. While supply decreased by 11.8% for detached homes, it remained flat for attached homes.
Heading into February, the total inventory stood at 1.01 million units, representing a 2% increase from the previous month and a 3.1% increase from the same time last year. This resulted in a 3 months’ supply at the current sales pace, according to NAR. Despite the increase in inventory, it remains below the 5-6 months’ supply of a balanced market, indicating that demand is still outpacing supply. Consequently, existing-home sales prices continued to rise, climbing 5.1% year-over-year to $379,100.
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