March 20 (UPI) -- The National Association of Realtors on Thursday reported February U.S. existing home sales were up 4.2%, much higher than expected. Analysts predicted a 3% drop.
Total home sales for the month were 4.26 million, 1.2% lower than February 2024, when 4.31 million homes sold.
"Homebuyers are slowly entering the market," association chief economist Lawrence Yun said in a statement. "Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.
"The momentum for home sales is flashing encouraging signs," he added.
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At the end of February, 1.24 million homes were in the registered housing inventory, up 5.1% over January. The number of available homes increased 17% from a year ago.
Unsold housing inventory was is at a 3 1/2-month supply, according to the association. The median home price was $398,400 in February, a gain of 3.8% over a year ago.
The February report also showed home equity in the United States is up by nearly $1.3 trillion "at a time when the current stock market is undergoing a correction."
Cash home sales made up 32% of the home purchases in February, and first-time buyers bought 31% of the homes sold.
A John Burns Research and Consulting report said more than half the real estate agents indicated this resale market is weaker than normal.
"Current sales ratings remain with 53% of agents reporting weaker than normal sales," the John Burns report said. "This is better than 56% one year ago, but lower than January's 47%. Affordability constraints and economic uncertainty keep many buyers on the sidelines."
