Existing-home sales exceed Goldman Sachs’ expectations

Month-over-month existing-home sales were bleak in January, plummeting by 8.4% to a seasonally adjusted annual rate (SAAR) of 3.91 million units, according to a report by the National Association of Realtors. 

These data include the sales of existing (not newly built) single-family homes, condos, and co-ops. Existing-home sales make up more than 90% of housing sales in the U.S., according to the NAR, so they’re crucial to understanding how the national real estate market is performing.

Following January’s discouraging data, the financial services firm Goldman Sachs predicted that existing-home sales would just barely tick up in February, up 0.5% to 3.9 million.

Goldman Sachs underestimated February’s increase, however, according to a press release describing the latest NAR existing-homes sales data. In reality, sales unexpectedly jumped by 1.7% to 4.09 million units.

Monthly and annual existing-home prices stabilize

Goldman Sachs data show that the seasonally adjusted median sales price of existing homes dropped by 0.2% in February. Seasonally adjusted prices compare housing costs by accounting for seasonal factors such as weather to provide a more accurate picture of the housing market.

Although the 0.2% decrease may seem minor, any downward movement is a good sign for potential buyers as we enter spring, which is the unofficial start of the homebuying season.

More on the housing market:

Redfin, Zillow reveal major mortgage rate, housing market changeWhat the stock market is saying about the housing marketZillow reveals U.S. city with top housing market for homebuyers

According to the NAR, January’s annual home price was up 0.9% to $396,800. In February, median year-over-year prices only rose by only 0.3%, landing at $398,000.

Yes, this is still a price increase. But according to the NAR, in February 2025, the year-over-year median existing home price had grown by 3.4%. National housing prices are climbing more slowly, which is good news for hopeful buyers as we enter the homebuying season.

The NAR claims home affordability is improving for Americans

Several factors influence why month-over-month property sales are up. The median number of days a home sat on the market in February was 47, according to the NAR report, one more day than in January and five more days than during last February.

The longer a house is on the market, the more likely sellers are to offer concessions or cut prices to induce buyers.

According to Realtor.com, 15.5% of listing prices were cut nationally in February.

“Housing affordability is improving, and consumers are responding,” NAR Chief Economist Dr. Lawrence Yun said in the press release. “Still, there is a long way to go to return to pre-pandemic levels of transaction activity.”

Maybe you’re considering waiting for prices to drop even more significantly before buying. This probably isn’t a good strategy, though.

During my career covering mortgages and the housing market, I’ve learned that attempting to time the real estate market is as risky — and often as fruitless — as trying to time the stock market. 

Also, it’s possible prices could increase over time rather than decrease.

“Inventory is growing, but sluggishly,” Yun added. “If demand picks up notably in the coming months and outpaces supply growth, home prices will inevitably rise. That is why increasing supply is so important to help limit home price growth, improve housing affordability, and boost transactions.”

Data show that housing affordability varies by regionAnnual housing affordability improved nationally.The NAR’s Housing Affordability Index tracks whether a typical family can afford a mortgage on a standard home, both nationally and regionally. February’s HAI showed that home affordability grew in all four major regions in the U.S. The West experienced the highest affordability increase at 17%, while the Northeast saw the lowest at 10%.February monthly existing-home sales increased in the Midwest, South, and West, but rose in the Northeast.Year-over-year home sales only improved in the South. The other three regions experienced lower annual sales. This demonstrates Yun’s point that the country still has significant steps to take before reaching pre-pandemic levels.The balance between supply and demand is improving. According to Goldman Sachs, February’s inventory of existing homes on the market rose to 4.4 months, reaching its highest point since May 2025.

Related: Zillow predicts mortgage rate, housing market shift

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