The National Association of Realtors Says Existing Home Sales Plummet 7.2% For First Quarter 2022
Existing-home sales plummet by 7.2% this quarter according to the NAR. This continues a seesawing pattern of gains and declines since Christmas.
The NAR is say that each of the four major U.S. regions saw sales fall in February. They also say that sales activity year-over-year was also down overall. However, the South experienced an increase while the remaining three regions reported drops in transactions.
Total existing-home sales completed transactions sank 7.2% from January. This number represents an adjusted annual rate of 6.02 million homes in February. Year-over-year, sales decreased 2.4%.
The median existing-home price for all housing types in February was $357,300. This is also am increase of 15% from the February 2021 price of $310,600. February marks 120 consecutive month of year-over-year increases.
Properties typically remained on the market for 18 days in February. This is down from 19 days in January and 20 days in February 2021. 84% of homes sold in February 2022 were on the market for less than a month.
First-time buyers were responsible for 29% of sales in February. This is up from 27% in January and down from 31% in February 2021.
Individual investors or second-home buyers purchased 19% of homes in February. This is down from 22% in January but up from 17% in February 2021. All-cash sales accounted for 25% of transactions in February. This is down from 27% in January and up from 22% in February 2021.
Distressed sales aka foreclosures and short sales represented less than 1% of sales in February. This is equal to the percentages seen in both January 2022 and February 2021.
Existing Home Sales Plummet For Single-Family and Condo/Co-ops Have Dropped As Well
Single-family home sales also dropped to an adjusted annual rate of 5.35 million in February. This is down 7% from 5.75 million in January and down 2.2% from one year ago. The median existing single-family home price was $363,800 in February was up 15.5% from February 2021.
The report also shows 670,000 existing Condos and co/ops were sold in February. This is down 9.5% from 740,000 in January and down 4.3% from one year ago. The median existing condo price was $305,400 in February. This is an annual increase of 10.9%.
Regional Breakdown For Existing Home Sales
Existing-home sales in the Northeast slipped 11.5% in February registering an annual rate of 690,000 units. This is also a 12.7% drop from February 2021. The median price in the Northeast was $383,700, up 7.1% from one year ago.
Existing-home sales in the Midwest sagged 11.3% from the prior month to an annual rate of 1,330,000 in February. As a result, this is a 1.5% decrease from February 2021. The median price in the Midwest was $248,900, a 7.5% climb from February 2021.
Existing-home sales in the South fell 5.1% in February from the prior month. However, this is an increase of 3.0% from one year ago. The median price in the South was $318,800. This also an 18.1% jump from one year prior. For the sixth straight month, the South also experienced the highest pace of price appreciation compared to the other regions.
Existing-home sales in the West slid 4.7% from the previous month with an annual rate of 1,210,000 in February. This is also down 8.3% from one year ago. The median price in the West was $512,600 which is up 7.1% from February 2021.
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