Home sales in the U.S. are down 7.2%, NAR report finds

In January, buyers in the United States were rushing to purchase a home due to the rising mortgage rates and low inventory. The monthly report from the National Association of Realtors (NAR) shows that existing-home sales went up 6.7 percent. However, a month later, home sales declined by 7.2 percent compared to January and 2.4 percent year-over-year. 

According to the new monthly report, existing-home sales fell to a seasonally adjusted 6.02 million in February. NAR's chief economist Lawrence Yun suggests that the decline in sales comes from a jump in mortgage rates and home prices. 

"Housing affordability continues to be a major challenge, as buyers are getting a double whammy: rising mortgage rates and sustained price increases," Lawrence Yun wrote in the press release. "Some who had previously qualified at a 3% mortgage rate are no longer able to buy at the 4% rate."

In February, the median existing-home price for all housing types went up 15 percent and reached $357,300. Home prices in the United States have been rising consecutively for 120 months, which is the longest-running year-over-year increase in history.

On the positive side, the number of unsold existing homes went up to 870,000. On average, a property for sale stayed on the market for 19 days in January and 18 days in February.  

"The sharp jump in mortgage rates and increasing inflation is taking a heavy toll on consumers' savings," Yun wrote. "However, I expect the pace of price appreciation to slow as demand cools and as supply improves somewhat due to more home construction."

The report also provided data for regional breakdown. In February, existing-home sales in the Northeastern United States, which include New York, New Jersey, and eight other states, dropped 11.5 percent to 690,000. At the same time, the median home sale price went up 7.1 percent and reached $383,700. 

Resources:

“Existing-home sales declined 7.2% in February,” by Holden Walter-Warner (The Real Deal, 2022)

“Existing-Home Sales Fade 7.2% in February,” (National Association of Realtors, 2022)

“Existing-home sales leapt 6.7% in January,” by Orion Jones (The Real Deal, 2022)

“Existing-Home Sales Surge 6.7% in January,” (National Association of Realtors, 2022)