Existing home sales jumped 3.2% in February to a seasonally adjusted annual rate of 4.26 million, according to data released by the National Association of Realtors.
That's the strongest monthly pace since early 2024, and it caught plenty of economists off guard.
But here's the part that matters if you're house hunting: the median existing-home price slipped to $398,400, down slightly from a year ago.
That's a rare breather after years of relentless increases.
Inventory also climbed to a 3.8-month supply, the highest in years, giving buyers something they haven't had in a while — options.
Mortgage rates have been bouncing in the mid-6% range instead of the 7%-plus territory that froze the market in 2023 and 2024.
Sellers who locked in ultra-low rates during the pandemic are finally listing anyway, many because of job moves, growing families, or retirement.
More listings plus slightly cheaper money equals more deals closing.
Insurance costs in Florida, Texas, and California are still brutal, and property taxes have climbed in many metros.
A lower sticker price doesn't always mean a lower monthly payment once you add taxes, insurance, and HOA fees.
If you're shopping right now, here's the practical playbook.
First, get pre-approved before you tour anything — sellers in competitive pockets still favor clean offers.
Second, ask your lender about buydown points; paying a little upfront can shave your rate meaningfully over the first few years.
Third, don't skip the inspection to win a bidding war.
In a market with rising inventory, you have less reason to waive protections.
Fourth, look at homes that have sat for 30 days or more.
Those sellers are often more flexible on price and closing costs than the ones hosting packed open houses.
One more angle worth checking: assumable mortgages.
Some FHA and VA loans can transfer to a buyer at the seller's original rate, which could be 3% or lower.
It's paperwork-heavy and not every seller qualifies, but in a mid-6% world, it's worth asking about.
Renters watching this should also pay attention.
More home sales mean fewer rental conversions and, in some markets, softening rent growth.
It won't happen overnight, but the pressure valve is starting to loosen.
The takeaway: this isn't a crash, and it isn't a boom.
It's a market slowly returning to something that resembles normal — and normal is a lot friendlier to buyers than the last two years were.
If you've been waiting on the sidelines, run your numbers, talk to a lender, and see what you actually qualify for.
Our take: the biggest mistake buyers make in a shifting market is waiting for the perfect moment that never arrives.
Rates and prices rarely move in your favor at the same time, and trying to time both is a losing game.
Final Thoughts
If the monthly payment works for your budget today, that matters more than what the headlines say next month.