The US housing market experienced moderate growth in February, with sales up 1.2% year over year, according to the National Association of Realtors (NAR). The median home price rose 3.8% from last February to $398,400.
However, sales were only higher in the highest price categories above $750,000. The market saw a slight increase in inventory, with 1.24 million units available at the end of February, a 17% year-over-year growth. Despite this, the current supply remains low, equivalent to just a 3.5-month supply.
First-time buyers returned to the market, making up 31% of sales, while investors decreased their share from 21% last year. The use of cash in home purchases remained steady at 32%, which is often favored by investors. However, this suggests that owner-occupants are using cash more frequently.
Analysts had expected a decline in sales but received the opposite result. Industry experts attribute the growth to more inventory and choices releasing pent-up housing demand. Despite this, the market remains tight, with industry analysts stating it’s still a “relatively tight market condition.”
The low supply is keeping prices high, which is now at a record high for February. All four geographical regions saw price increases. However, real estate agents are reporting weaker sales ratings, with 53% of respondents indicating lower-than-normal sales due to affordability constraints and economic uncertainty.
This trend suggests that the housing market may be experiencing an adjustment period as buyers enter the market. Despite the growth, experts remain cautious about the market’s resilience in the face of ongoing economic challenges.
Source: https://www.cnbc.com/2025/03/20/february-home-resales-jump-more-than-expected-despite-mortgage-rates.html