Sales of previously occupied U.S. homes rose in January from the previous month to the strongest pace in a year with homebuyers encouraged by a modest pullback in mortgage rates and more properties on the market.
Quick Read
- Increase in Home Sales: In January, sales of previously occupied homes in the U.S. surged 9.5% to a seasonally adjusted annual rate of 4.38 million, marking the strongest sales pace since February of the previous year.
- Exceeding Expectations: This sales pace exceeded economists’ predictions, which anticipated a rate of 3.93 million according to FactSet.
- Year-over-Year Comparison: Despite the monthly increase, sales experienced a 3.3% decline from the same period a year earlier.
- Rising Home Prices: The national median sales price saw a 5.7% increase from the previous year, reaching $384,500, setting a record for February since 1999.
- Increased Inventory: The market observed a 5.9% monthly increase in unsold homes, totaling 1.07 million by the end of the month, the highest February inventory since 2020.
- Market Supply: The current inventory represents a 2.9-month supply at the current sales pace, indicating a seller’s market, as a balanced market typically has a 4- to 6-month supply.
- Positive Outlook: The increase in housing supply is seen as a positive development, meeting market demand and offering more options for homebuyers.
The Associated Press has the story:
February home sales hit strongest pace in a year as mortgage rates ease
Newslooks- LOS ANGELES (AP) —
Sales of previously occupied U.S. homes rose in January from the previous month to the strongest pace in a year with homebuyers encouraged by a modest pullback in mortgage rates and more properties on the market.
Existing home sales climbed 9.5% last month from January to a seasonally adjusted annual rate of 4.38 million, the National Association of Realtors said Thursday. That’s the strongest sales pace since February last year and topped the 3.93 million sales pace economists were expecting, according to FactSet.
Sales rose on a monthly basis in February for the second month in a row, but fell 3.3% from a year earlier.
The pickup in sales helped push up home prices compared with a year earlier for the eighth month in a row. The national median sales price climbed 5.7% from a year earlier to $384,500. That’s the highest median sales price for February on records going back to 1999.
While the supply of homes on the market remains below the historical average, the typical increase in homes for sale that happens ahead of the spring homebuying season gave homebuyers a wider selection of properties to choose from.
At the end of last month, there were 1.07 million unsold homes on the market, a 5.9% increase from January and up 10.3% from a year earlier. That’s the highest inventory of homes for sale for February since 2020, the NAR said.
Even so, the available inventory at the end of last month amounted to a 2.9-month supply, going by the current sales pace. That’s down from a 3-month supply in January, but up from a 2.6-month pace in February last year. In a more balanced market between buyers and sellers, there is a 4- to 6-month supply.
“Additional housing supply is helping to satisfy market demand,” said Lawrence Yun, the NAR’s chief economist.
