U.S. Existing-Home Sales Rise 1.7% in February Amid Affordability Gains
Event summary
- Existing-home sales increased 1.7% month-over-month to a seasonally adjusted annual rate of 4.09 million in February 2026.
- Housing affordability improved for the eighth consecutive month, with the Housing Affordability Index rising to 117.6.
- Inventory grew 2.4% from January and 4.9% year-over-year, but supply remains tight at a 3.8-month level.
- Median home price increased 0.3% year-over-year to $398,000, marking the 32nd consecutive month of price gains.
- Regional performance varied: sales rose in the Midwest, South, and West, but fell in the Northeast.
The big picture
The February 2026 existing-home sales report highlights a modest rebound in activity, driven by improving affordability and lower mortgage rates. However, the market remains constrained by supply shortages, with inventory growth lagging behind demand. The strategic tension lies in whether the current affordability gains can translate into sustained transaction growth or if supply constraints will continue to limit market momentum. The report underscores the broader challenge of aligning housing supply with wage growth and job gains to restore pre-pandemic transaction levels.
What we're watching
- Affordability Impact
- How sustained affordability improvements will affect homebuyer demand and market activity.
- Inventory Growth
- Whether inventory levels will accelerate enough to prevent price increases amid rising demand.
- Regional Disparities
- The pace at which regional sales trends will converge or diverge based on local economic conditions.