Existing home sales jumped 3.2% in February to a seasonally adjusted annual rate of 4.26 million, according to the National Association of Realtors.
On the surface, that sounds like the housing market finally shaking off its long freeze.
Look closer at the details, though, and the picture gets more interesting for anyone thinking about buying or selling this spring.
The median existing-home price hit $398,400, up 3.8% from a year earlier — the 20th straight month of annual gains.
But here's the wrinkle: inventory climbed to a 3.8-month supply, the highest since 2019.
More homes are sitting on the market, and sellers are no longer calling every shot.
Roughly 27% of February buyers received some form of seller help, whether that meant closing-cost credits, repair allowances, or mortgage rate buydowns.
During the 2021 frenzy, that number was closer to 15%.
In practical terms, a buyer negotiating today may have leverage their neighbor didn't have two years ago.
The reason is straightforward: mortgage rates.
The 30-year fixed averaged 6.76% in February, down from a peak above 7.7% in late 2023 but still roughly double where rates sat in 2021.
A buyer putting 20% down on a $400,000 home faces a monthly principal-and-interest payment near $2,090, versus about $1,360 at a 3% rate.
That math is why so many households feel priced out even as headlines declare the market "recovering." First-time buyers made up 31% of February sales, up slightly from 28% a year ago but still below the historical norm of around 40%.
Cash buyers accounted for 26% of transactions, and investors bought 16%.
Those numbers matter because they show who's actually competing: people with equity, savings, or existing homes to sell — not renters trying to break in.
Regionally, sales rose most in the Midwest and South, where prices are lower and inventory has loosened faster.
The Northeast and West saw smaller gains, held back by tighter supply and higher price points.
For anyone weighing a move, the takeaway isn't that the market is hot or cold — it's that it's finally normal-ish.
Sellers can't list a fixer-upper at a premium and expect a bidding war.
Buyers can ask for repairs, request rate buydowns, and walk away from a bad inspection without losing the house to a cash offer.
If you're selling, price realistically from day one.
Overpriced listings are sitting, and each price cut costs you negotiating room later.
If you're buying, get pre-approved before you shop, but also get quotes from at least two lenders — rate spreads between lenders have widened, and a half-point difference on a $350,000 loan runs about $100 a month.
One more thing worth checking: assumable mortgages.
Some FHA and VA loans can be taken over by a buyer at the seller's original rate.
With today's rates near 6.7%, inheriting a 3% loan can save six figures over the life of the mortgage.
Few sellers advertise it, and fewer buyers ask.
It's back to negotiable — and that's a meaningful difference for anyone with a down payment and a calculator.
The real story here isn't the sales bump; it's that leverage quietly changed hands.
Sellers spent three years holding every card, and that era is ending.
Final Thoughts
Buyers who do their homework this spring may find the best opening they've had in years.