February Existing Home Sales: A Step Back, but a Promising Path Forward
New listing activity has slowed, leaving fewer homes for buyers to bid on and contributing to a step back in February existing home sales volumes.

New listing activity has slowed, leaving fewer homes for buyers to bid on and contributing to a step back in February existing home sales volumes.
While market competition remains elevated and homes continue to sell quickly, new listing activity slowed early in 2021, leaving even fewer homes for would-be buyers to bid on and potentially contributing to a step back in February existing home sales volumes. Harsh winter weather may have also played a role in the slowdown. Recorded existing home sales tend to reflect buying activity in the prior two months, but the winter storms that crippled much of the country last month may have stopped or delayed many closings, leaving a backlog of deals still to clear in coming months. Still, the path forward looks promising. After gradually retreating to begin the year, signs of buyer activity — especially the level of mortgage applications — have rebounded in recent weeks, suggesting many home shoppers are getting a jump on what promises to be a busy spring season. What’s more, improvements in the economy and continued distribution of the COVID-19 vaccine should encourage more homeowners to place their homes on the market.