US existing home sales for February reached 4.26 million, surpassing the expected figure of 3.95 million. The previous month’s sales data was adjusted from 4.08 million to 4.09 million.
Sales rose by 4.2%, reversing a decline of 4.9% previously recorded and revised to -4.7%. The median home price experienced a year-over-year growth of 3.8%, settling at $398,400, down from 4.8%.
Inventory Levels And Market Resilience
Inventory levels remained stable at 3.5 months. Despite strong housing starts, the NAHB home builder survey reflected some challenges. The robust sales indicate that high mortgage rates did not deter market participation.
The housing market displayed resilience in February, with existing home sales exceeding projections by a substantial margin. A total of 4.26 million transactions took place, well above the anticipated 3.95 million. This unexpected strength follows an upward revision of January’s figures, from 4.08 million to 4.09 million.
Monthly sales growth rebounded by 4.2%, a shift from the previous contraction of 4.9%, which was later adjusted to 4.7%. This recovery coincided with a 3.8% year-over-year rise in the median home price, bringing it to $398,400. Though still an advance in prices, this marks a slowdown from the 4.8% growth that had been registered earlier.
Inventory conditions did not fluctuate, remaining at 3.5 months of supply. While new home construction showed strength, sentiment among builders, as reflected in the NAHB housing market index, suggested certain limitations within the sector. Nonetheless, higher mortgage costs did not appear to dissuade buyers in any pronounced manner.
Future Market Considerations
With the latest sales figures indicating persistent demand, attention shifts to how momentum translates into broader financial activity. The next few weeks require careful attention to mortgage rate trends and whether the stability in housing inventory sustains or starts to adjust. Given recent revisions in data and fluctuating price growth, it becomes essential to separate short-term movement from deeper structural changes in housing demand.
As market forces digest these developments, prior assumptions about consumer sensitivity to borrowing costs may need refinement. The balance between affordability challenges and household confidence will likely dictate how sales progress from here. While homebuilders navigate the environment cautiously, wider economic conditions will play a more direct role in dictating the persistence of this pattern. The response from policymakers and broader credit conditions could provide further clarity on whether this unexpected surge in activity continues or stabilises near current levels.
