U.S. Existing Home Sales Surge in February
by:Tom Moeller
|in:Economy in Brief
Summary
- Sales rise to twelve-month high.
- Home prices edge higher after seven straight monthly declines.
- Sales increase across the country, except Northeast.
Sales of existing homes increased 9.5% (-3.3% y/y) during February to 4.38 million (SAAR) from an unrevised 4.0 million in January, and 3.88 million in December. Sales were at the highest level since January of last year, up from the low of 3.85 million in October 2023. The Action Economics Forecast Survey expected February sales of 3.93 million units. The sales figures are based on closings of sales signed in earlier months.
The median price of all existing homes (NSA) improved 1.6% (5.7% y/y) to $384,500 after falling to a low of $378,600 in January. Prices remained 7.6% below the June 2022 peak of $413,800. The median price of an existing single-family home in February improved 1.5% (5.6% y/y) to $388,700 after declining 0.8% in January. The median price for condos & co-ops improved 1.3% (6.7%) to $344,000 after falling 1.2% in January.
Single-family home sales rose 10.3% (-2.7% y/y) last month to 3.97 million units after a 3.4% January increase. Sales remained 32.1% below their high of 5.85 million in October 2020. Condo and co-op sales rose 2.5% (-8.9% y/y) to 410 ,000 after holding steady in January. Sales have fallen 44.6% from their January 2021 high of 740,000.
Overall sales were mixed m/m across the country. Sales in the West surged 16.4% (-1.2% y/y) to 850,000 after rising 4.3% in January. Sales in the Midwest rose 8.4% (-3.7% y/y) to 1.03 million last month after rising 2.2% in January. Sales in the South strengthened 9.8% (-2.9% y/y) in February to 2.02 million after rising 4.0% in January. Sales in the Northeast totaled 480,000 (-7.7% y/y) for the fourth consecutive month.
The number of existing homes for sale (NSA) rose 5.9% (10.3% y/y) to 1.07 million in February after rising 2.0% in January. The supply of homes on the market at the current selling rate (NSA) eased to 2.9 months from 3.0 months in January. The record low in supply of 1.6 months was reached in January, 2022. These figures date back to January 1999.
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. The expectations figure is from the Action Economics Forecast Survey, reported in the AS1REPNA database.
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
More Economy in Brief
Global
