Article from the HousingWIre 3-10-26
Concise summary
- U.S. existing-home sales increased 1.7% in February to a seasonally adjusted annual rate of 4.09 million, but remained 1.4% lower than the same month last year.
- Housing affordability continued to improve, with the NAR’s Housing Affordability Index rising to 117.6 in February, and mortgage rates easing to 6.05% for a 30-year fixed mortgage.
- Despite the modest gain in home sales, the market faces challenges in the spring, including economic uncertainty, limited inventory, and potentially higher mortgage rates due to international conflict.
Detailed summary
- The U.S. existing-home sales experienced a slight increase of 1.7% in February, reaching a seasonally adjusted annual rate of 4.09 million, although this is still 1.4% lower than the same month last year, according to the National Association of Realtors (NAR).
- Housing affordability has been improving for the eighth consecutive month, with the NAR’s Housing Affordability Index rising to 117.6 in February, which is significantly higher than 103.1 a year earlier, and NAR Chief Economist Lawrence Yun stated that consumers are responding to this improvement.
- Despite the modest gain in home sales, actual housing demand remains muted relative to wage growth and job gains, with wage growth outpacing home price growth by almost four percentage points, and mortgage rates being measurably lower compared to a year ago.
- The total inventory of homes rose to 1.29 million units in February, a 2.4% increase from January and a 4.9% gain compared to February 2025, representing 3.8 months of homes on the market, and Yun emphasized the importance of increasing supply to limit home price growth and boost transactions.
- The median price for existing homes across all housing types was $398,000 in February, up 0.3% from $396,800 a year earlier, marking the 32nd consecutive month of year-over-year price gains, and regional trends varied across the country, with sales activity increasing in the South and West, but declining in the Northeast and Midwest.
- Single-family home sales increased 2.5% in February to an annual rate of 3.73 million, though they were still 1.1% below the level from a year earlier, and condominium and co-op sales declined 5.3% from January to an annual rate of 360,000, with the median price for those properties rising 0.9% to $358,100.
- First-time buyers accounted for 34% of purchases, up from 31% both the previous month and a year earlier, and mortgage rates eased slightly during February, with the average rate for a 30-year fixed mortgage being 6.05%, according to Freddie Mac, which is down from 6.10% in January and 6.84% one year earlier.
- The outlook for the upcoming spring homebuying season has become less certain, with Lisa Sturtevant, chief economist at Bright MLS, stating that international conflict could stall home sales activity this spring if it is prolonged, but the housing market could rebound quickly if the conflict is limited.
Read entire article here: Existing-home sales up in February, market faces spring challenges
