Sales of previously owned homes surged 14.5 percent in February, ending a 12-month streak of steady declines, according to the National Association of Realtors. 

While sales were still down 22.6 percent from the year before, the upswing signaled that the housing market is regaining strength, as Homebuyers appear to be responding to lower prices and slowing rate hikes. 

"Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines," said NAR Chief Economist Lawrence Yun. "Moreover, we're seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs."

The national median existing-home price, meanwhile, dropped 0.2 percent in February. That is down 12.3 percent from a peak in June and the first year-over-year decline since February, 2021. 

The average 30-year fixed mortgage rate also moderated in February, giving buyers a break from the economic tightening kicked off by the Federal Reserve last year.  The rate slipped again last week to 6.60 percent, according to Freddie Mac. 

As for the supply side of the equation, housing inventory didn't budge between January and February, sticking around 980,000 units, but it's still up 15.3 percent from one year ago. 

"Inventory levels are still at historic lows," Yun said. "Consequently, multiple offers are returning on a good number of properties."

Share:
More In Business
Starbucks’ Change Flushes Out a Debate Over Public Restroom Access
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
Trump Highlights Partnership Investing $500 Billion in AI
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Load More