Home Sales Bounce Back
US home sales bounced back in February as buyers responded to easing mortgage rates US homes sales bounced back in February as homebuyers seized on easing mortgage rates.
The National Association of Realtors reported a 1.7% increase in existing home sales in February, reaching a seasonally adjusted annual rate of 4.09 million units. This figure exceeded economists' expectations of 3.84 million. Unsold inventory saw a slight increase of 2.4% to 1.29 million units, equivalent to a 3.8-month supply at the current sales rate. While inventory is up 4.9% year-over-year, it remains significantly below the pre-pandemic level of roughly 2 million homes for sale, with a 5- to 6-month supply considered a balanced market. The median existing home price rose 0.3% year-over-year to $398,000, marking the 32nd consecutive month of annual price increases. Despite the increase, affordability remains a challenge, especially for first-time buyers. Lower mortgage rates have played a significant role in the sales increase, with the 30-year fixed-rate mortgage averaging around 6%. First-time buyers accounted for 34% of sales in February, matching the highest level in the last five years.
