February 2025 Housing Market Update: What Buyers and Sellers Need to Know
- realtorjakub
- Mar 30
- 6 min read
Updated: Mar 30
As a dedicated Realtor with years of experience helping clients navigate the ever-changing real estate landscape, I’m excited to share the latest insights from the National Association of REALTORS® (NAR) February 2025 Existing-Home Sales Statistics. I’m here to break down the data in a professional, actionable way to empower both buyers and sellers in today’s market. Whether you’re looking to purchase your dream home or maximize the value of your property, these trends will help guide your next steps. Let’s dive into the numbers and explore what they mean for you. - Your Realtor, Jakub
Market Overview: A Steady Recovery with Opportunities
The housing market in February 2025 showed signs of stabilization and growth. Existing-home sales, which include single-family homes, townhomes, condominiums, and co-ops, rose by 4.2% from January, reaching a seasonally adjusted annual rate of 4.26 million. However, on a year-over-year basis, sales experienced a slight decline of 1.2% compared to February 2024 (down from 4.31 million). It’s worth noting that this year-over-year comparison is influenced by 2024 being a leap year, which provided an extra day for transactions.
NAR Chief Economist Lawrence Yun noted, “Home buyers are slowly entering the market. Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.” This suggests a market that’s gradually warming up, presenting opportunities for both buyers and sellers. Inventory levels also improved, with 1.24 million unsold homes available at the end of February—up 5.1% from January and 17% from a year ago—translating to a 3.5-month supply at the current sales pace.
Median Price Trends: A Look at Home Values
Understanding price trends is critical for both buyers and sellers. Let’s examine the median price of existing-home sales over the past five years.
Source: National Association of REALTORS®
From January 2020 to February 2025, median home prices have followed a dynamic trajectory. Starting at approximately $300,000 in early 2020, prices surged to a peak of $413,800 in June 2022—a 38% increase driven by high demand and limited inventory. A correction followed, with prices dipping to $363,600 by January 2023, before recovering to $410,100 by June 2024. As of February 2025, the median price stood at $398,400, reflecting a 3.8% year-over-year increase from $383,800 in February 2024. This marks 20 consecutive months of price gains, though the rate of growth has moderated compared to earlier years.
For Buyers: While prices remain elevated, the slight decline from the 2024 peak may provide a window to secure a home at a relatively stable price point.
For Sellers: Your property’s value has likely appreciated significantly since 2020, and the consistent upward trend in prices offers a strong opportunity to maximize your return on investment.
Market Dynamics: Who’s Buying and How?
The REALTORS® Confidence Index Survey provides valuable insights into buyer behavior and market conditions.
Source: National Association of REALTORS®
In February 2025, several key indicators shifted compared to February 2024:
First-Time Buyers: Increased to 31% of sales, up from 26% last year, signaling growing confidence among new entrants to the market.
Sales to Investors: Decreased to 16%, down from 21%, indicating a pullback from investors, possibly due to moderating price growth.
Cash Sales: Held steady at 32%, a slight decrease from 33%, showing that cash buyers remain a significant presence.
Distressed Sales: Remained stable at 3%, reflecting a healthy market with minimal foreclosure activity.
Days on the Market: Rose to 42 days, up from 38 days, suggesting that buyers have more time to evaluate options as inventory grows.
For Buyers: The increase in first-time buyers and longer market times indicate a less frenzied environment, giving you more leverage in negotiations. However, be prepared to compete with cash buyers.
For Sellers: With fewer investors in the market, your property may attract more owner-occupant buyers, though you may need to allow a bit more time for the right offer to come through.
Sales Trends: Year-Over-Year Changes
Let’s explore how sales have shifted on a year-over-year basis.
Source: National Association of REALTORS®
From February 2024 to February 2025, existing-home sales experienced fluctuations. Early 2024 saw declines, with a low of -5.1% in May, reflecting challenges from higher mortgage rates and economic uncertainty. However, a recovery began mid-year, with sales growth peaking at 9.7% in November 2024 as rates stabilized and inventory expanded. By February 2025, sales were down 1.2% year-over-year, though the month-over-month increase of 4.2% indicates positive momentum.
For Buyers: The recent dip in year-over-year sales growth may reduce competition, offering a chance to secure a home with less pressure.
For Sellers: The month-over-month sales increase suggests that demand remains steady. Properties typically remained on the market for 42 days in February, up from 41 days in January and 38 days in February 2024.
Long-Term Sales Perspective: A Broader View
To put current sales into context, let’s look at the seasonally adjusted annual rate of sales over the past five years.
Source: National Association of REALTORS®
Sales peaked at 6.43 million in November 2020, driven by low interest rates and heightened demand during the pandemic. A significant decline followed, with sales dropping to 4.46 million by January 2023—a 31% decrease—as rising rates impacted affordability. Since then, sales have stabilized, fluctuating between 4.3 and 4.5 million. In February 2025, sales reached 4.26 million, up 4.2% from January but down 1.2% from the previous year.
For Buyers: The market is less competitive than it was in 2020, providing more time to find the right home.
For Sellers: While sales are below their 2020 peak, the recent uptick indicates sustained buyer interest.
Price Growth: A Closer Look
Understanding the pace of price growth is essential for making informed decisions.
Source: National Association of REALTORS®
This chart tracks the year-over-year percentage change in median home prices. Growth peaked at 5.8% in November 2024, after dipping to 2.5% in July 2024. By February 2025, price growth moderated to 3.8%, reflecting a steady but slower upward trend compared to late 2024.
For Buyers: The slowing pace of price growth may improve affordability, making now a strategic time to enter the market.For Sellers: Prices continue to rise, but the rate of increase is moderating—consider listing sooner to capitalize on current gains.
Regional Breakdown: Where Are Sales Happening?
Finally, let’s examine how sales are distributed across the U.S.
Source: National Association of REALTORS®
In February 2025, sales broke down as follows:
South: 45% of sales (1.91 million), down 4% year-over-year but up 4.4% month-over-month. Median price: $358,800 (+1.9%).
Midwest: 23% of sales (1 million), up 1% year-over-year. Median price: $295,500 (+5.8%).
West: 20% of sales (850,000), flat year-over-year but up 13.3% month-over-month. Median price: $614,600(+3.6%).
Northeast: 12% of sales (500,000), up 4.2% year-over-year. Median price: $464,300 (+10.4%).
For Buyers: The Midwest offers the most affordable options, while the South has the highest sales volume. The West is pricier but seeing a surge in activity.For Sellers: The Northeast and West are experiencing strong price growth, making these regions particularly attractive for maximizing returns.
Mortgage Rates: A Key Factor
Mortgage rates play a significant role in market dynamics. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.65% as of March 13, 2025—up slightly from 6.63% the previous week but down from 6.74% a year ago. This relative stability supports buyer activity, though rates remain higher than the historic lows of 2020–2021.
For Buyers: Stable rates mean predictable financing costs, but it’s wise to lock in a rate sooner rather than later.
For Sellers: Steady rates keep buyers engaged, supporting demand for your property.
Key Takeaways and Recommendations
As your trusted Realtor, I’m here to help you make the most of these market conditions. Here’s what February 2025 means for you:
For Buyers: The market is showing signs of balance, with increased inventory (3.5 months’ supply) and longer days on the market (42 days). This gives you more time to find the right home and negotiate favorable terms. With first-time buyers making up 31% of sales, it’s a great time to join the homeownership journey—let’s get you pre-approved and start your search!
For Sellers: Prices are up 3.8% year-over-year, and the month-over-month sales increase of 4.2% indicates strong buyer interest. While homes are taking a bit longer to sell, the market remains favorable for sellers. Now is an excellent time to list your property and capitalize on price growth—let’s work together to price and stage your home for a quick sale.
Let’s Work Together
The February 2025 housing market offers opportunities for both buyers and sellers, but success requires a strategic approach. As your Realtor, I’m committed to guiding you every step of the way—whether you’re searching for the perfect home or aiming to maximize your property’s value. Contact me today to discuss your goals, and let’s make your real estate dreams a reality.
Jakub Adamowicz
Realtor | RE/MAX Prime Properties
407.487.4487 |
All data and charts are sourced from the National Association of REALTORS® February 2025 Existing-Home Sales Statistics report.
