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21.03.2024

U.S. existing-home sales unexpectedly surge in February

The National Association of Realtors (NAR) reported on Thursday that the U.S. existing home sales surged 9.5 per cent m-o-m to a seasonally adjusted rate of 4.38 million in February from an unrevised 4.00 million in January. This represented the highest rate since February 2023 (4.53 million).

Economists had forecast home re-sales decreasing to a 3.94 million-unit pace last month.

In y-o-y terms, existing home sales declined 3.3 per cent in February.

Across regions, existing-home sales jumped in the West (+16.4 per cent m-o-m), South (+9.8 per cent m-o-m), and Midwest (+8.4 per cent m-o-m), and remained unchanged in the Northeast (0 per cent m-o-m). Compared to February 2023, all four regions - the Northeast (-7.7 per cent), Midwest (-3.7 per cent), South (-2.9 per cent), and West (-1.2 per cent) -demonstrated decreases in sales. 

Over the reviewed period, the median existing home price for all housing types soared 5.17 per cent y-o-y to $384,500. This represented the eighth straight month of year-over-year gains in median existing-home price.

Single-family home sales came in at a seasonally-adjusted annual rate of 3.97 million in February, up 10.3 per cent m-o-m but down 2.7 per cent y-o-y. Meanwhile, existing condominium and co-op sales were registered at a seasonally adjusted annual rate of 410,000 units in February, up 2.5 per cent m-o-m but down 8.9 per cent y-o-y.

Commenting on the latest data, Lawrence Yun, NAR chief economist, noted that additional housing supply is helping to satisfy market demand. “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,” he added.

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