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gentle breeze of optimism swept through the US housing market in February, as easing mortgage rates and a surge in available properties coaxed homebuyers out of their shells. Existing home sales ticked up 4.2% from January to a seasonally adjusted annual rate of 4.26 million units, according to the National Association of Realtors.

    While still lagging behind last year's pace by 1.2%, this uptick marked an end to five consecutive years of annual declines. Economists had predicted a more modest 3.92 million sales, making February's numbers a pleasant surprise.

    Home prices continued their upward trajectory, rising 3.8% from the previous year to a record-breaking $398,400 median sales price in February. Lawrence Yun, NAR's chief economist, attributed this trend to "pent-up housing demand" being slowly released as more inventory and choices become available.

    The US housing market had been stuck in neutral since mortgage rates began their ascent in 2022, with sales plummeting to nearly 30-year lows last year. However, a brief dip in rates in late September was short-lived, and by mid-January, they had climbed back above 7%. Since then, rates have gradually declined, reaching an average of 6.76% by the end of February.

    This modest relief is welcome news for potential homebuyers as the spring market heats up. Those with the means to take advantage of current loan rates or opt out altogether by paying cash will find a wider selection of properties to choose from. At the end of February, there were 1.24 million unsold homes on the market – a 5.1% increase from January and 17% more than last year.

    The inventory of homes for sale has been growing due in part to longer selling times. Last month, homes typically lingered on the market for 42 days before finding a buyer, up from 41 days in January and 38 days in February last year. This translates to a 3.5-month supply at the current sales pace – still short of the traditional 5-6 months considered a balanced market between buyers and sellers.