(Kitco News) - Spot gold is holding above $3,030 per ounce after the latest data showed the U.S. housing market improving beyond expectations last month.
Total existing-home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 4.2% to a seasonally adjusted annual rate of 4.26 million in February, the National Association of Realtors (NAR) announced on Thursday.
The data was far better than expected, as the forecast of economists called for a -0.7% drop to 3.92 million. January’s total was revised up to 4.09 million from 4.08 million units. Year-over-year, sales were down 1.2% from February 2024.
Spot gold last traded at $3,031.26 for a loss of 0.52% on the day at the time of writing.
“Home buyers are slowly entering the market,” said NAR Chief Economist Lawrence Yun. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”
The report noted that existing-home sales rose in the South and West, held steady in the Midwest, and declined in the Northeast.
Total housing inventory stood at 1.24 million units at the end of February, up 5.1% from January and 17% from the 1.06 million in January 2024. Unsold inventory now sits at a 3.5-month supply at the current sales pace, the same as January and up from 3.0 months in February 2024.
“On a technical note, raw sales in February were down 5.2% from last year, which was a leap year with one extra day of business,” Yun added. “However, after adjusting for this effect, combined with the winter seasonal factors, the momentum for home sales is flashing encouraging signs.”
The median existing-home price for all housing types in February was $398,400, up 3.8% from $383,800 one year ago. All four U.S. regions registered price increases.
