February Existing-Home Sales Hit 4.09 Million as Inventory Climbs to 3.8 Months

The National Association of Realtors reported that existing-home sales reached a seasonally adjusted annual rate of 4.09 million in February 2026, a modest increase from January's revised figure and a sign that the market is stabilizing after two years of rate-driven suppression. The median existing-home sales price came in at $398,000, a 2.8% increase year-over-year — the slowest appreciation rate since 2012 and a welcome development for buyers who have been priced out of the market.

Inventory was the headline story in February's report. Available supply rose to 3.8 months at the current sales pace, the highest reading since February 2020 and a meaningful step toward the 4-to-6 months economists consider a balanced market. Total active listings climbed to approximately 1.24 million units nationally, up 18% from the same period last year. The inventory build is particularly concentrated in Sun Belt markets where new construction has been active and pandemic-era demand has normalized.

Regional performance was mixed. The Northeast continues to operate in near-extreme seller conditions, with months of supply below 2.0 in several major metros including Boston and Providence. The Midwest showed the strongest sales growth of any region, up 4.2% month-over-month, supported by relative affordability and steady employment bases in cities like Columbus, Indianapolis, and Kansas City. The South and West both posted modest gains.

The first-time buyer share ticked up slightly to 29% of all transactions — still near historic lows but an improvement from the 27% recorded in late 2025. All-cash buyers represented 32% of February transactions, continuing a trend of cash-flush repeat buyers and investors dominating the market relative to mortgage-dependent first-timers. The elevated cash share reflects both the wealth concentration at the top of the market and the continued hesitation of entry-level buyers facing both price and rate barriers.

NAR Chief Economist Lawrence Yun noted that while the February numbers reflect continued gradual recovery, the recent uptick in mortgage rates — now touching 6.12% on the 30-year fixed — introduces uncertainty heading into the typically strong spring selling season. Markets will be watching closely for the March data to see whether the seasonal tailwind is strong enough to absorb rising borrowing costs.