In February, the U.S. housing market showed signs of recovery as contract signings increased by 2%, according to the National Association of REALTORS® (NAR). This uptick follows a 4.2% rise in existing-home sales reported earlier, suggesting a potential rebound from January's downturn. The South led this recovery with a 6.2% increase in contract signings, while the Midwest saw a modest 0.7% rise. Conversely, the West and Northeast experienced declines of 3% and 0.9%, respectively. NAR Chief Economist Lawrence Yun noted that, despite this progress, contract signings are still below historical norms. He emphasized that a significant drop in mortgage rates could enhance both demand and supply by improving affordability and reducing the mortgage rate lock-in effect. NAR forecasts a moderate decrease in mortgage rates, averaging 6.4% in 2025 and 6.1% in 2026, which could further stimulate the market. (Baron's +4) (National Association of Realtors +3)

To encourage potential buyers, Yun highlighted the substantial disparity in median net worth between homeowners and renters—$400,000 versus $10,000, respectively—as a compelling reason to consider homeownership. Additionally, an increase in inventory is anticipated to moderate home price growth, with NAR projecting existing-home sales to rise by 6% in 2025 and 11% in 2026. New-home sales are also expected to grow by 10% in 2025 and 5% in 2026. The national median home price is forecasted to increase by 3% in 2025 and 4% in 2026. Yun concluded that the anticipated rise in housing supply will likely lead to more balanced price growth in the coming years. National Association of REALTORS®

APA Citation:

REALTOR® Magazine Staff. (2025, March 27). Home sales thaw as contract signings jump 2% in February. REALTOR® Magazine. Retrieved from https://www.nar.realtor/magazine/real-estate-news/home-sales-thaw-as-contract-signings-jump-2-percent-in-february

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