Existing Home Sales: Strong Rebound

Bottom Line: Existing home sales rebounded in February after hitting decade-plus lows in January. While the rebound was statistically significant and much sharper than expected, it is still too early to call a turn in the trend. Moreover, seasonal adjustments in February can be difficult. Supply conditions remain very tight, with months' supply (sales/inventory) dropping to just 2.6 months. Prices edged slightly higher, led by sales in the Midwest, while the Northeast saw surprisingly lower prices. Overall, housing continues to rebalance, finding a new equilibrium amid high mortgage rates. While it is too early to call a bottom, this report was yet another indication that the pace of declines is slowing.

Existing Home Sales ROSE 0.58 million annualized units to 4.58, ABOVE the 3-Month average of 4.2, ABOVE the 6-Month average of 4.31 but -1.34 BELOW the year-ago level.
Single-family sales ROSE 0.55 million annualized units to 4.14, ABOVE the 3-Month average of 3.78, ABOVE the 6-Month average of 3.86 but -1.13 BELOW the year-ago level.

Median prices nationwide ROSE 1.8k dollars to 363, BELOW the 3-Month average of 363.57, BELOW the 6-Month average of 370.95, nearly in line with the year-ago level of 363.7.

Inventory was unchanged at 0.98, ABOVE the 3-Month average of 0.97, BELOW the 6-Month average of 1.08, and 0.13 ABOVE the year-ago level.  Months supply FELL -0.3 months to 2.6, BELOW the 3-Month average of 2.8, BELOW the 6-Month average of 3.03 but 0.9 ABOVE the year-ago level.