After declining in January, existing home closings rose 1.7% in February, according to the National Association of REALTORS® (NAR). Housing inventory also increased, rising 2.4% from January to 1.29 million homes. That’s 4.9% higher than the same time last year.
What’s the bottom line? Housing affordability is gradually improving, which is helping bring some buyers back into the market, according to NAR Chief Economist Lawrence Yun. However, while inventory is growing, it’s doing so slowly. Yun noted that if demand strengthens faster than supply in the coming months, home prices could face renewed upward pressure – underscoring the need for more housing supply.