US housing rebounds, inventory still tight
February saw a rebound in US existing-home sales to 4.09 million units, but inventory remains sluggish despite a slight increase.
The National Association of Realtors (NAR) reported a 1.7% increase in existing-home sales in February to a seasonally adjusted annual rate of 4.09 million. This was above economists' expectations, but still a 1.4% decrease year-over-year. Despite the slight sales increase, inventory remains a concern. The total housing inventory was 1.29 million units, a 2.4% increase from January and a 4.9% increase from February 2025. However, the 3.8-month supply of unsold inventory was unchanged from January. Rising inventory has kept home prices subdued. The median existing-home price was $398,000, a 0.3% increase year-over-year, marking the 32nd consecutive month of increases. Lower mortgage rates and wage growth outpacing home price growth are improving affordability. NAR's Housing Affordability Index rose to 117.6 in February, the highest since March 2022. First-time buyers accounted for 34% of sales, up from 31% in January, signaling improved affordability is reaching those who need it most. Sales rose in the Midwest, South, and West but fell in the Northeast. The West saw the largest bounceback, while the South was the only region with year-over-year gains.
