Residential Real Estate News
Existing Home Sales in America Uptick in February
In February 2025, existing-home sales saw a notable increase, according to the National Association of Realtors (NAR). Two major U.S. regions experienced growth in both monthly and year-over-year sales, one region remained steady, and another faced a decline.
Total existing-home sales - encompassing single-family homes, townhomes, condominiums, and co-ops - rose by 4.2% from January, reaching a seasonally adjusted annual rate of 4.26 million. However, this represented a 1.2% drop compared to February 2024's 4.31 million.
"Home buyers are gradually returning to the market," said NAR Chief Economist Lawrence Yun. "Stable mortgage rates, increased inventory, and more options are helping to satisfy pent-up housing demand."
By the end of February, total housing inventory reached 1.24 million units, marking a 5.1% increase from January and a 17% rise from the previous year's 1.06 million. Unsold inventory maintained a 3.5-month supply at the current sales pace, consistent with January but up from 3.0 months in February 2024.
"Raw sales in February were down 5.2% from last year due to 2024's leap year, which provided an extra day of business," Yun noted. "After adjusting for this and seasonal winter trends, the outlook for home sales remains positive."
The median existing-home price for all housing types in February was $398,400, reflecting a 3.8% increase from $383,800 one year earlier. All four U.S. regions reported higher prices.
"A 1% rise in home prices translates to roughly $350 billion in additional housing equity for American homeowners," Yun added. "This equates to nearly $1.3 trillion in home value appreciation, offering stability amid stock market corrections. Additionally, low mortgage default rates and ongoing housing shortages continue to support home values."
Realtors Confidence Index
The monthly Realtors Confidence Index reported that homes typically remained on the market for 42 days in February, compared to 41 days in January and 38 days in February 2024.
First-time buyers accounted for 31% of sales in February, up from 28% in January and 26% in February 2024. The 2024 NAR Profile of Home Buyers and Sellers, released in November 2024, noted a record-low annual share of 24% for first-time buyers.
Cash sales comprised 32% of transactions in February, increasing from 29% in January but slightly down from 33% in February 2024. Individual investors and second-home buyers, who often pay in cash, purchased 16% of homes in February, down from 17% in January and 21% from the previous year.
Distressed sales, including foreclosures and short sales, made up 3% of February transactions, unchanged from both the previous month and the prior year.
Single-Family and Condo/Co-op Sales
Single-family home sales rose by 5.7% to a seasonally adjusted annual rate of 3.89 million in February, representing a slight 0.3% decrease from February 2024. The median existing single-family home price climbed 3.7% year-over-year to $402,500.
Conversely, existing condominium and co-op sales dropped 9.8% in February to a seasonally adjusted annual rate of 370,000 units, mirroring a 9.8% decline from the previous year. The median existing condo price was $355,100, a 3.5% increase from $343,000 in February 2024.
Regional Breakdown
- Northeast: Sales decreased by 2.0% from January to an annual rate of 500,000 but rose 4.2% year-over-year. The median price increased by 10.4% to $464,300.
- Midwest: Sales remained steady at an annual rate of 1 million, reflecting a 1.0% year-over-year increase. The median price rose 5.8% to $295,500.
- South: Sales climbed 4.4% from January to an annual rate of 1.91 million but declined 4.0% from the previous year. The median price edged up 1.9% to $358,800.
- West: Sales surged 13.3% in February to an annual rate of 850,000, maintaining parity with the previous year. The median price rose 3.6% to $614,600.
