U.S. Existing Home Sales Unexpectedly Rebound in February
Summary
- February sales +1.7% to 4.09 mil.; -1.4% y/y, fourth straight y/y decline.
- Sales m/m up in the West (+8.2%), South (+1.6%), and Midwest (+1.1%), but down in the Northeast (-6.0%).
- Median sales price +0.8% (+0.3% y/y) to $398,000, first m/m increase since October.
- Unsold inventory +2.4% (+4.9% y/y) to three-month-high 1.29 mil. units; 3.8 months' supply.
Existing home sales rose 1.7% m/m (-1.4% y/y) to 4.09 million units (SAAR) in February, the second monthly rise in three months, following an upwardly revised 5.9% decline to 4.02 million in January (previously -8.4%; 3.91 mil.), according to the National Association of Realtors (NAR). The Action Economics Forecast Survey had expected February sales of 3.90 million units. Despite the m/m rebound, sales remained 36.4% below a high of 6.43 million in January 2022 and 38.0% below a peak of 6.60 million in January 2021. February’s recovery coincided with a drop in the average 30-year fixed mortgage rate to 6.05% in February, the lowest since August 2022, after declining to 6.11% in January, according to Freddie Mac. The sales figures are based on closings of sales contracts signed over the past couple of months.
Existing single-family home sales increased 2.5% (-1.1% y/y) to 3.73 million units in February, the second m/m gain in three months, after a 6.2% drop to 3.64 million in January. Sales of condos and co-ops fell 5.3% (-5.3% y/y) to 360,000 after a 2.6% January decline to 380,000, marking the third m/m fall in four months and the lowest level since May 2025.
By region, February existing home sales mostly increased m/m. Sales in the West jumped 8.2% (-1.3% y/y) to a one-year-high 790,000 in February, reversing a 6.4% decrease in January. Sales in the South rose 1.6% (0.5% y/y) to 1.89 million after a 6.5% January drop. Sales in the Midwest grew 1.1% (-4.1% y/y) to 940,000 following a 6.1% January fall. These three regions posted the second m/m increase in three months. Sales in the Northeast, however, fell 6.0% (-4.1% y/y) to 470,000, the lowest level since October 2024, following a 2.0% January decline and two consecutive m/m increases. Notably, the South remained the dominant region, accounting for 46.2% of total U.S. existing home sales.
The median price of all existing homes (NSA) rose 0.8% (0.3% y/y) to $398,000 in February, the first m/m rise in four months, after a 2.5% decline to $395,000 in January ($396,800 initially). Prices remained 8.0% below a high of $432,700 in June 2025. The median price of an existing single-family home, up for the first time since October, increased 0.9% (0.2% y/y) to $401,800 in February after a 2.8% decline to $398,200 in January (the lowest level since January 2025). The median price of condos and co-ops fell 1.9% (+0.9% y/y) to a one-year-low $358,100, the first m/m fall since November, following a 1.1% January increase to $365,000. Regionally, overall prices rebounded m/m in the West (+3.0%; -1.9% y/y), South (+1.7%; +0.2% y/y), and Midwest (+1.3%; +2.3% y/y) in February, but fell m/m in the Northeast (-4.8%; +3.3% y/y).
Inventories of homes for sale increased for the second successive month in February. The number of existing homes for sale (NSA) rose 2.4% (4.9% y/y) to 1.29 million units, the highest level since November, following a 2.4% January rise to 1.26 million and three straight m/m declines. The supply of homes on the market at the current selling rate (NSA) held at 3.8 months in February and January after falling to 3.5 months in December (the lowest since January 2025). The recent high of 4.6 months was in August 2025, while a record low in supply of 1.6 months was in January 2022.
The data on existing home sales, prices and affordability are compiled by the National Association of Realtors. The data on single-family home sales extend back to February 1968. Total sales and price data and regional sales can be found in Haver's USECON database. Regional price and affordability data and national inventory data are available in the REALTOR database. Mortgage interest rates can be found in the WEEKLY database. The expectations figure is from the Action Economics Forecast Survey, reported in the AS1REPNA database.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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