After a slightly disappointing start to 2025, existing-home sales data reversed in February, seeing a rise in line with what was observed throughout much of the latter part of 2024.
Existing-home sales rose 4.2% from a rate of 4.08 million in January to 4.26 million in February, according to the latest data from the National Association of REALTORS® (NAR).
“Homebuyers are slowly entering the market,” said NAR Chief Economist Lawrence Yun. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”
On the opposite end of the spectrum from the previous month, sales fell 1.2% year-over-year, down from the rate of 4.31 million seen a year ago.
Yun noted, however, that after adjusting for last year’s leap year and regular winter seasonal factors, “the momentum for home sales is flashing encouraging signs.”
Inventory came in at 1.24 million units at the end of February, up an impressive 5.1% from January and 17% from last year’s 1.06 million. Inventory currently sits at a 3.5-month supply, unchanged from January and up slightly from the 3 months seen a year ago.
The median home price for existing homes was $398,400, up 3.8% from the $383,800 seen one year ago. In addition, all four U.S. regions registered price increases.
“Each one percentage point gain in home price translates into an approximately $350 billion increase in housing equity for American property owners,” Yun added. “That means a gain of nearly $1.3 trillion in home value appreciation at a time when the current stock market is undergoing a correction. Moreover, the ongoing housing shortage, coupled with historically low mortgage default rates, implies a solid foundation for home values.”
The latest monthly REALTORS® Confidence Index noted that properties typically remained on the market for 42 days, up from 41 days in January and 38 days in February 2024.
The first-time buyer sector of sales came in at 31%, up from 28% last month and 26% last year. This contrasts with NAR’s 2024 Profile of Home Buyers and Sellers, which found that the annual share of first-time buyers was 24%—the lowest ever recorded.
Single-family home sales grew 5.7% to a rate of 3.89 million, down 0.3% from the prior year. The median price was $402,500, up 3.7% from last year. Existing condominium and co-op sales fell 9.8% to a rate of 370,000 units, also down 9.8% from one year ago. The median price was $355,100, up 3.5% from the previous year.
In addition, cash sales represented 32% of transactions, up from 29% in January but down from 33% in February 2024. Individual investors or second-home buyers (who make up many cash sales) made up 16% of transactions, down from 17% in January and 21% from February 2024. Distressed sales (foreclosures and short sales) were 3% of transactions, unchanged from both January and last year.
Looking ahead, Realtor.com® Chief Economist Danielle Hale commented that 2025’s home sales are “expected to exceed 2024’s long-term low.”
“While February sales slipped behind their year-ago pace, settling mortgage rates are teeing up the possibility of a reverse of 2024’s rate trend that could be a positive for the busy late spring and early summer sales season that will set the tone for 2025,” she continued.
Regional data
The Northeast saw a 2% decrease in sales to an annual rate of 500,000, but sales were still up 4.2% from one year ago. The median price was $464,300, up 10.4% from February 2024.
In the Midwest, sales were unchanged at an annual rate of 1 million, up 1% from the prior year. The median price was $295,500, up 5.8% from one year earlier.
Sales in the South fell 4.4% to an annual rate of 1.91 million, down 4% from one year before. The median price was $358,800, up 1.9% from last year.
The West saw a 13.3% jump in sales to an annual rate of 850,000, identical to a year ago. The median price was $614,600, up 3.6% from one year earlier.
