Navigating Today's Housing Market: Prices, Inventory, and Buyer Trends

According to the National Association of Realtors (NAR), existing-home sales rose 4.2% in February compared to January. Two regions saw growth, one held steady, and one declined. Although year-over-year numbers were slightly lower, buyer interest is clearly building. Sellers who price strategically and prep their homes well are more likely to attract serious offers.

Home Prices Continue to Climb

Home prices posted a 3.8% annual gain in February, marking 20 straight months of increases across all regions. NAR’s Chief Economist, Lawrence Yun, noted that each percentage point in price growth adds about $350 billion in homeowner equity. These rising values not only benefit sellers but also encourage buyers to act before prices climb higher.

Inventory Is Growing, Along with Demand

Housing inventory increased by 5.1% in February to 1.24 million homes—up 17% year-over-year. While supply remains tight at 3.5 months, that’s an improvement from 3.0 months a year ago. Mortgage rates have stayed steady, keeping buyer activity strong. Sellers are taking advantage by listing before competition heats up further.

Who’s Buying Right Now?

First-time buyers made up 31% of February's market, rising from 28% the previous month. Cash buyers edged up to 32%, while investors and second-home buyers accounted for 16%. With homes averaging 42 days on the market, sellers who price competitively and stage effectively are more likely to stand out.

Regional Sales Breakdown - South

Existing-home sales annual rate of 1.91 million; an increase of 4.4% from January 2025 but a decrease of 4% from February 2024.