Existing-home sales dropped 7.2 percent nationally last month, according to new data out from the National Association of Realtors. Year-over-year, sales decreased 2.4 percent.
In its monthly report, NAR found that sales fell on a month-over-month basis in all four regions of the U.S. Existing-home sales in the West slid 4.7 percent from January to February, and , down 8.3 percent compared to one year ago. The median price in the West, however, was up 7.1 percent to $512,600 annually.
“Housing affordability continues to be a major challenge, as buyers are getting a double whammy: rising mortgage rates and sustained price increases,” said Lawrence Yun, NAR’s chief economist. “Some who had previously qualified at a 3 percent mortgage rate are no longer able to buy at the 4 percent rate.
“Monthly payments have risen by 28 percent from one year ago—which interestingly is not a part of the consumer price index—and the market remains swift with multiple offers still being recorded on most properties.”
The median existing-home price for all housing types in February was $357,300, up 15 percent from February 2021 when the median price was $310,600.
Unsold inventory sits at a 1.7-month supply, up from the record-low supply in January of 1.6 months and down from 2 months in February 2021.
First-time buyers were responsible for 29 percent of sales in February, up from 27 percent in January. Individual investors or second-home buyers, bought up 19 percent of homes in February, down from 22 percent in January. All-cash sales accounted for 25 percent of transactions last month, down from 27 percent in January.