US existing-home sales unexpectedly rise

(Sharecast News) - Existing-home sales in the United States rebounded strongly in February, according to the National Association of Realtors, which pointed to "encouraging signs" for the American housing market. Completed sales for single-family homes, townhomes, condominiums and co-ops came in at a seasonally adjusted annual rate of 4.26m in February, down 1.2% from last year but 4.2% ahead of the previous month.

That followed a revised 4.7% monthly decline in January. Analysts had expected a further fall to 3.95m from January's 4.09m level.

The median existing-home sales price was 3.8% higher than February 2024 at $398,400, marking the 20th consecutive month of year-over-year price increases, the NAR said. Each of the four US major regions saw price growth over last year.

Total housing inventory was 1.24m at the end of the month, up 5.1% from January and 17% higher than a year earlier, with unsold inventory levels equating to a 3.5 months supply at the current sales pace.

"Home buyers are slowly entering the market," said NAR chief economist Lawrence Yun. "Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand."

The "momentum for home sales is flashing encouraging signs", Yun said.

"Each one percentage point gain in home price translates into an approximately $350bn increase in housing equity for American property owners. That means a gain of nearly $1.3trn in home value appreciation at a time when the current stock market is undergoing a correction. Moreover, the ongoing housing shortage, coupled with historically low mortgage default rates, implies a solid foundation for home values."