Existing-Home Sales Vaulted 9.5% in February, Largest Monthly Increase in a Year

Key Highlights

  • Existing-home sales surged 9.5% in February to a seasonally adjusted annual rate of 4.38 million, the largest monthly increase since February 2023. Sales declined 3.3% from the previous year.
  • The median existing-home sales price elevated 5.7% from February 2023 to $384,500 – the eighth consecutive month of year-over-year price gains.
  • The inventory of unsold existing homes increased 5.9% from one month ago to 1.07 million at the end of February, or the equivalent of 2.9 months’ supply at the current monthly sales pace.

Washington, D.C. – March 21, 2024 (nar.realtor) Existing-home sales climbed in February, according to the National Association of REALTORS®. Among the four major U.S. regions, sales jumped in the West, South and Midwest, and were unchanged in the Northeast. Year-over-year, sales declined in all regions.

Total existing-home sales1– completed transactions that include single-family homes, townhomes, condominiums and co-ops – bounced 9.5% from January to a seasonally adjusted annual rate of 4.38 million in February. Year-over-year, sales slid 3.3% (down from 4.53 million in February 2023).

“Additional housing supply is helping to satisfy market demand,” said NAR Chief Economist Lawrence Yun. “Housing demand has been on a steady rise due to population and job growth, though the actual timing of purchases will be determined by prevailing mortgage rates and wider inventory choices.”

Total housing inventory2 registered at the end of February was 1.07 million units, up 5.9% from January and 10.3% from one year ago (970,000). Unsold inventory sits at a 2.9-month supply at the current sales pace, down from 3.0 months in January but up from 2.6 months in February 2023.

EHS Housing Snapshot Infographic, February 2024

The median existing-home price3 for all housing types in February was $384,500, an increase of 5.7% from the prior year ($363,600). All four U.S. regions posted price increases.

REALTORS® Confidence Index

According to the monthly REALTORS® Confidence Index, properties typically remained on the market for 38 days in February, up from 36 days in January and 34 days in February 2023.

First-time buyers were responsible for 26% of sales in February, down from 28% in January and 27% in February 2023. NAR’s 2023 Profile of Home Buyers and Sellers – released in November 20234 – found that the annual share of first-time buyers was 32%.

All-cash sales accounted for 33% of transactions in February, up from 32% in January and 28% one year ago.

Individual investors or second-home buyers, who make up many cash sales, purchased 21% of homes in February, up from 17% in January and 18% in February 2023.

Distressed sales5 – foreclosures and short sales – represented 3% of sales in February, virtually unchanged from last month and the previous year.

Mortgage Rates

According to Freddie Mac, the 30-year fixed-rate mortgage(link is external) averaged 6.74% as of March 14. That’s down from 6.88% the prior week but up from 6.60% one year ago.

Single-family and Condo/Co-op Sales

Single-family home sales grew to a seasonally adjusted annual rate of 3.97 million in February, up 10.3% from 3.6 million in January but down 2.7% from the previous year. The median existing single-family home price was $388,700 in February, up 5.6% from February 2023.

At a seasonally adjusted annual rate of 410,000 units in February, existing condominium and co-op sales increased 2.5% from last month but declined 8.9% from one year ago (450,000 units). The median existing condo price was $344,000 in February, up 6.7% from the previous year ($322,400).

Regional Breakdown

At 480,000 units, existing-home sales in the Northeast were identical to January but down 7.7% from February 2023. It’s the fourth consecutive month that home sales in the Northeast registered 480,000 units. The median price in the Northeast was $420,600, up 11.5% from one year ago.

In the Midwest, existing-home sales propelled 8.4% from one month ago to an annual rate of 1.03 million in February, down 3.7% from the previous year. The median price in the Midwest was $277,600, up 6.8% from February 2023.

Existing-home sales in the South leapt 9.8% from January to an annual rate of 2.02 million in February, down 2.9% from one year earlier. The median price in the South was $354,200, up 4.1% from last year.

In the West, existing-home sales skyrocketed 16.4% from a month ago to an annual rate of 850,000 in February, a decline of 1.2% from the prior year. The median price in the West was $593,000, up 9.1% from February 2023.

“Due to inventory constraints, the Northeast was the regional underperformer in February home sales but the best performer in home prices,” Yun added. “More supply is clearly needed to help stabilize home prices and get more Americans moving to their next residences.”

About NAR

The National Association of REALTORS® is America’s largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.

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For local information, please contact the local association of REALTORS® for data from local multiple listing services (MLS). Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.NOTE: NAR’s Pending Home Sales Index for February is scheduled for release on March 28, and Existing-Home Sales for March will be released on April 18. Release times are 10 a.m. Eastern.


1 Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR benchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90% of total home sales, are based on a much larger data sample – about 40% of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

2 Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single-family sales accounted for more than 90% of transactions and condos were measured only on a quarterly basis).

3 The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.

The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single-family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.

4 Survey results represent owner-occupants and differ from separately reported monthly findings from NAR’s REALTORS® Confidence Index, which include all types of buyers. The annual study only represents primary residence purchases, and does not include investor and vacation home buyers. Results include both new and existing homes.

5 Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s REALTORS® Confidence Index.

Tricked-out Backyards Can Help Homes Sell For $10,000 More

Zillow finds homes featuring TikTok trends, like plant ledges and rounded corners, sell nearly a week faster

  • New Zillow research finds outdoor TVs, outdoor showers and outdoor kitchens can help homes sell for as much as 3.1% more than expected.
  • Fresh features are replacing old favorites. Soapstone countertops and beverage centers are outperforming quartz counters and wine fridges.
  • Viral home features that appeal to younger first-time buyers can help a home sell up to six days faster than expected. 

Seattle, WA – March 21, 2024 (PRNewswire) Home buyers are willing to pay more for a backyard decked out with all the bells and whistles. New Zillow® research finds homes equipped with an outdoor TV command 3.1% more than expected — or $10,749 on a typical U.S. home. That’s the highest sale price premium of all 359 features Zillow analyzed across nearly 1 million home sales in 2023. 

Homes with other desirable backyard features such as an outdoor shower, pizza oven and bluestone patio also fetch higher-than-expected sale prices when those features are mentioned in a listing description. Six of the top 10 features that help homes sell for more are outdoor features, signaling that the pandemic-era demand for functional outdoor space remains. 

Certain trendy or viral features can attract more competing buyers, contributing to a speedier sale. Rounded corners, popular in contemporary furniture design and now architecture (hello, curvy kitchens), can help a home sell six days faster than similar homes. #Plantparents snap up homes that mention a plant ledge in their listing description more than five days faster than expected. Statement terrazzo tile can help a home stand out and sell nearly four days faster. 

“When certain home features or design styles are highlighted in a listing description, they serve as a signal to a buyer that a home is appealing and up-to-date. As a result, those features can help a home sell faster and for more money,” said Amanda Pendleton, Zillow home trends expert. “On the flip side, certain features can suggest a home is dated and needs work, and can lower a home’s sale price. Features like laminate or tile countertops can hurt a home’s value by at least 1% when mentioned in a listing description.”

In with the new

Modern features that signal a home is either brand new or recently remodeled contribute to higher sale premiums. The current look of contemporary homes often incorporates matte black finishes and white oak flooring, which can boost a home’s sale price by 2.9% and 1.6% respectively. 

Soapstone now outperforms quartz as the countertop material of choice, contributing to a sale premium of 3% versus 1.7%. And a beverage center is the new wine fridge. Beverage centers can help a home fetch a 2.4% sale premium, compared to 0.9% for wine fridges. These undercounter refrigerators offer different temperature settings for different types of beverages, not only wine.  

If you’ve got it, flaunt it

Homeowners looking to sell for top dollar this spring will want to highlight these home features if they’ve got them. However, installing an outdoor shower or any of these individual features solely for resale may not deliver these kinds of returns. Instead, these keywords should be viewed as signals about everything else a home has going for it. For instance, if a home has an outdoor shower, it probably has a pool or is close to the beach, which is what buyers are ultimately willing to pay more for.  

Sellers should also keep in mind that features that help homes sell in one neighborhood may not resonate with buyers somewhere else. An experienced local real estate agent with extensive market knowledge can help sellers highlight the right features, and will likely have other creative pricing and marketing strategies to help maximize a home’s sale price.

Affordability curbs features’ price premiums

Price premiums for individual features were lower across the board in 2023 compared to previous years, as buyers’ budgets were constrained by higher mortgage rates. Affordability remains the biggest hurdle for home buyers, particularly first-time buyers, who must prioritize “need to have” features over “nice to have” features.

Home shoppers will face similar affordability challenges this spring home shopping season, along with more competition for homes that have sought-after features. Affordability calculators can help buyers set a budget, and buyers can then search for homes by monthly cost on Zillow instead of by purchase price. With attractive homes flying off the market in only 17 days, prospective buyers should get pre-qualified for a mortgage first, so they can act quickly when the right home comes along — with or without an outdoor TV.  

Top 10 features that sell a home for more than expected 

FeaturePrice premium
Outdoor TV3.1 %
Soapstone3.0 %
Matte black2.9 %
Outdoor shower2.6 %
Beverage center2.4 %
Bluestone (patio)2.3 %
She shed2.0 %
Pizza oven1.9 %
Quartz1.7 %
Outdoor kitchen1.7 %

Top 10 features that sell a home faster than expected

FeatureDays faster
Rounded corners6.2
Plant ledge5.6
Frameless shower4.7
Terrazzo3.7
Picket fence3.2
Modern farmhouse3.1
Turf3.0
Fenced yard2.8
Energy Star2.6
Saltwater pool2.6

About Zillow Group

Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences. 

Zillow Group’s affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss®. 

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.

SOURCE Zillow Group

NAR Highlights Dire Lack of Housing Affordability and Inventory in Congressional Testimony

Dr. Jessica Lautz discusses NAR research, confirms the housing market continues to have a deficit in housing inventory compared to housing demand.

Washington, D.C. – March 20, 2024 (nar.realtor) Dr. Jessica Lautz, deputy chief economist and vice president of research at the National Association of REALTORS®, today testified(link is external) before the House Committee on Financial Services Subcommittee on Housing and Insurance.

During the hearing, “The Characteristics and Challenges of Today’s Homebuyers,” Lautz shared NAR’s existing-home sales research with members of Congress. She emphasized that in 2023, the annual number of existing-home sales was at the lowest recorded since 1995. While January 2024 shows an increase in home sales, this follows a retraction in the housing market due to limited inventory and an erosion in housing affordability.

Lautz pointed to NAR’s research, confirming that bidding wars for homes are more frequent due to the lack of housing inventory. She outlined research from the association showing that in January 2024, the typical seller received 2.7 offers, and 16% of homes sold were over the list price. Further, she explained that home prices continue to rise because of the lack of inventory, pushing more potential buyers out of the market.

“First-time home buyers continue to struggle to enter the housing market lacking the housing equity that boosts the purchasing power of repeat buyers,” Lautz testified. “First-time buyers accounted for 32% of primary-residence buyers last year, which remains well under the historical norm of 40%. While there is a smaller share of first-time buyers, they are also older than they have been historically. In the 1980s, the typical first-time buyer was in their late 20s; however, they are now in their mid 30s. Among first-time buyers who can enter the market successfully are those with household incomes of nearly $25,000 more than those of the year prior.”

The National Association of REALTORS® and its 1.5 million members work tirelessly to help all citizens achieve homeownership. Regardless of background, owning a home remains a pivotal cornerstone to attaining the American Dream and is a means of spurring generational wealth within families. Due to the lack of affordability, coupled with low inventory, first-time home buyers are not afforded the benefits that come with homeownership.

“The wealth held by homeowners is 40 times that of a renter,” Lautz said. “Housing wealth can be used to help children attend college, pay for remodeling costs on the home, in retirement or even help their own children achieve the dream of homeownership. Homeownership also comes with a number of social benefits, such as educational achievement, civic participation, health benefits, property maintenance and improvement.”

Along with NAR, representatives from the Mortgage Bankers Association and the National Fair Housing Alliance were present for the hearing.

About the National Association of REALTORS®

The National Association of REALTORS® is America’s largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.

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