February 2024 Existing-Home Sales
Sales See Highest Monthly Gain in 12 Months
Existing-home sales shot up higher in February. Sales rose 9.5% from January to a pace of 4.38 million, but continue to fall short of the year-ago pace by 3.3%. Monthly gains were seen in every region except the Northeast. Mortgage rates tumbled from late October through mid-January, steadying through early February at some of the lowest rates since May 2023. This dip brought down buying costs and enabled more households to plan to make a move in 2024. February’s home sales stem from buyers who likely locked in these best-in-6-month mortgage rates.
Pending home sales, which are based on contract signings, an earlier stage in the sales process that tend to lead existing-home sales by a month or two, saw a big pop in December 2023 and grew over the prior year for the first time since May 2021. They gave back some of these gains in January, highlighting that the home sales improvements ahead might not be a straight lineup.
Home Sellers Face Good Conditions With the Best Week Still Ahead
The median sales price rose further, climbing 5.7% nationwide, with price gains still in double digits in the Northeast (11.5%) and gaining in all four regions. With prices still going up, the number of homes on the market still limited, and equity still quite high, homeowners who choose to pursue a sale in 2024 face relatively healthy market conditions. Those hoping to capitalize on the best conditions of the spring market, however, would do well to start planning now.
Realtor.com research suggests that the best week to list a home for sale nationwide will be April 14–20, 2024, giving a little over a month from now to prepare.
What This Data Means for What’s Ahead
Housing affordability continues to be a key challenge for shoppers, and as a result, consumers are likely to remain sensitive to interest rate fluctuations in the year ahead. One lesser known hack for combatting today’s higher rates is to find a seller with an assumable mortgage loan—one that allows the buyer to take on the existing mortgage, including its likely lower rate. While not widespread, a Realtor.com study of listings data suggests that sellers are aware of and advertising this benefit on 1% to 3% of homes for sale in markets where these loans are more common.