FILE - A for sale sign appears outside a condominium complex Monday, Jan. 15, 2024, in Denver. Existing home sales jumped in February at the highest rate in a year as more supply started to hit the market that has been held down by higher rates and low inventory that boosted home prices and monthly mortgage payments.
Prices continued their upward trend in February, with the median existing home sales price increasing 5.7% to $384,500. It was the eighth consecutive month of year-over-year price gains., with inventory of unsold existing homes increasing by 5.9%. There has been low inventory for much of the last year as homeowners locked into lower rates that were available during the pandemic are hesitant or unwilling to move out of their homes and take on higher interest rates that are available today.
More homes tend to hit the market during spring, giving buyers more options to choose from and easing some of the pressure on prices. At the end of February, there were 1.07 million unsold homes on the market, up 10.3% from a year ago and the highest inventory of homes for sale in February since 2020, according to NAR.
The effects on list prices of homes are unclear at this point, but homebuyers are expected to save billions regardless with lower commission rates.