Existing-home Sales Drop In February As Inventory Falls To Historic Low

Existing-home sales declined in February after two consecutive months of gains, according to data released by the National Association of Realtors.

• Total existing home sales decreased 6.6% from January to a seasonally adjusted annual rate of 6.22 million in February. Total sales climbed year-on-year up 9.1% to 5.70 million in February.
• The median existing home price for all housing types grew 15.8% year-on-year to $313,000 as prices rose in every region. This marks 108 straight months of year-on-year gains.
• NAR chief economist Lawrence Yun attributed the drop to historically-low inventory. He cautioned of a possible slowdown in growth in the coming months due to higher prices and rising mortgage rates.
• Total inventory fell 29.5% year-on-year to 1.03 million units, while unsold inventory climbed to a 2.0-month supply versus January’s 1.9-month supply.
• Properties remained on the market for 20 days, down from both 21 days in January and from 36 days in February 2020. majority or 74% of those sold were on the market for less than a month.
• First-time buyers accounted for 31% of sales, while individual investors or second-home buyers accounted for 17%. All-cash sales accounted for 22% of transactions, while distressed sales represented less than 1% of sales.