(NAR) Existing home sales in the US were recorded at an annual rate of 6.02 million in February, down 7.2% from January.
On a year-over-year basis, existing home sales were down by 2.4%, underlining growing affordability concerns amid rising mortgage rates.
At the end of February, the housing inventory totaled 870,000, an increase of 2.4% from January. The inventory is 15.5% below the previous year.
The fall in housing inventory came when the median home price for existing homes rose by 15% year-over-year to $357,300. The house prices have now risen for a record 120 straight months.
The stock of unsold housing units is now at 1.7-month supply, an increase from a record low of 1.6-months in January. The inventory is down from 2.0-months in February 2021.
First-time buyers accounted for 29% of sales made in February, an improvement from 27% in January. The rate was below 31% posted in February 2021.
NAR’s chief economist Lawrence Yun says that rising inflation and mortgages have had a heavy impact on consumer savings. Yun expects the rate of house price increases to slow down as demand wanes while supply improves.
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