“As goes California so goes the nation.” Following last week’s news that the Golden State saw strong existing-home sales last month, the National Association of Realtors is just out with its February report, which shows an increase that snaps a 12-month slide and represents the largest monthly percentage increase since July 2020.
According to NAR, existing-home sales jumped 14.5 percent in February to a seasonally adjusted annual rate of 4.58 million. Compared to one year ago, however, sales retreated 22.6 percent.
“Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” said NAR Chief Economist Lawrence Yun. “Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”
Total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3 percent from one year ago. Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3 percent from January but up from 1.7 months in February 2022.
The median existing-home price for all housing types in January was $363,000, a decline of 0.2 percent from February 2022, as prices climbed in the Midwest and South but waned in the Northeast and West. This ends a streak of 131 consecutive months of year-over-year increases—the longest on record.
Existing-home sales in the West jumped 19.4 percent in February from the prior month but down 28.3 percent from the previous year. The median price in the West was $541,100, down 5.6 percent from February 2022. In the Northeast, sales were up 4 percent from January but down 25.7 percent from February 2022. The median price in the Northeast was $366,100, down 4.5 percent from the previous year.
In the Midwest, existing-home sales grew 13.5 percent from the previous month but declined 18.7 percent from one year ago. The median price in the Midwest was $261,200, up 5 percent from February 2022. Existing-home sales in the South rebounded 15.9 percent in February from January but slid 21.3 percent from the prior year. The median price in the South was $342,000, an increase of 2.7 percent from one year ago.