Following the sharp decline final month, present house gross sales bounced again in February as housing affordability improved. Decrease mortgage charges and moderating house worth development helped pull patrons again to the market. Nevertheless, tight stock will doubtless proceed to push house costs increased if demand outpaces provide development.
Complete present house gross sales, together with single-family properties, townhomes, condominiums, and co-ops, rose 1.7% to a seasonally adjusted annual fee of 4.09 million in February, in accordance with the Nationwide Affiliation of Realtors (NAR). On a year-over-year foundation, gross sales have been 1.4% decrease than a 12 months in the past.
The present house stock degree was 1.3 million items in February, up 2.4% from January and 4.9% from a 12 months in the past. On the present gross sales fee, February unsold stock sits at a 3.8-months’ provide, unchanged from final month however up from 3.6-months in February. Stock between 4.5 to six months’ provide is mostly thought-about a balanced market.
Houses stayed available on the market for a median of 47 days in February, up from 46 days within the earlier month and 42 days in February 2025.
The primary-time purchaser share was 34% in February, up from 31% in January and one 12 months in the past.
The February all-cash gross sales share was 31% of transactions, up from 27% in January however down from 32% a 12 months in the past. All-cash patrons are much less affected by modifications in rates of interest.
The February median gross sales worth of all present properties was $398,000, up 0.3% from final 12 months. This marks the thirty second consecutive month of year-over-year will increase. Nevertheless, the year-over-year development has moderated since peaking in December 2024, suggesting that worth appreciation could proceed to gradual. The median condominium/co-op worth in February was up 0.9% from a 12 months in the past at $358,100. Current positive aspects for house stock will put downward strain on resale house costs in most markets in 2026.
Three of the 4 main areas noticed gross sales will increase in February, starting from 1.1% within the Midwest to eight.2% within the West. Gross sales within the Northeast fell 6.0%. On a year-over-year foundation, gross sales rose solely within the South (+0.5%), whereas gross sales within the West, Midwest, and Northeast all declined (-1.3%, -4.1%, and -4.1%, respectively).
The Pending Residence Gross sales Index (PHSI) is a forward-looking indicator based mostly on signed contracts. The PHSI fell from 71.5 to 70.9 in January. On a year-over-year foundation, pending gross sales have been 0.4% decrease than a 12 months in the past, in accordance with the Nationwide Affiliation of Realtors’ information. The decline suggests patrons are holding again as a result of restricted stock selections.
