The National Association of Realtors (NAR) recently announced the Existing Home Sales statistics for the month of February 2021. According to them, in February’s seasonally adjusted home sales were 6.22 million units. This was a decline of 6.6% month-over-month, but was still ahead by 9.1% year-over-year, indicating a continuing strong demand for existing homes.
As for existing home median price, it climbed a robust 15.8% to $313,000 from last February’s $270,000. This represented an uninterrupted 108 months of year-over-year rise. Wow, that is 9 straight years!
The reason for this amazing trend is none other than tight housing inventory, it said. February housing inventory at 1.03 million units remained stable compared to January, but year-over-year this inventory level represented a precipitous drop of 29.5% from 1.46 million units, a historic percentage drop. For this reason, the average number of days on the market was a record short time of 20 days. Compared to 36 days a year ago, it goes to show the still healthy demand for housing.
Mortgage interest rates have started to rise in March. So, it is possible that this will put a damper on the frothy pace of existing home sales going into the future, the report concluded.