Sales of previously owned homes surged 14.5 percent in February, according to newly released numbers from the National Association of Realtors. It was the first improvement in 12 months and the largest month-over-month gain since July 2020. Lawrence Yun, NAR’s chief economist, says buyers capitalized where affordability conditions improved. “Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” Yun said. “Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.” Sales were up most in the West and South, though the Midwest also saw double-digit increases in February. Still, despite the gains, sales of existing homes remain lower than last year, with overall numbers down 22.6 percent year-over-year. Also in the report, the number of existing homes available for sale remains low. At the current sales pace, there is only a 2.6-month supply of homes for sale. A 6-month supply is considered a healthy market. (source)
