The national median home list price reached a new record high of $392,000 in February, a 12.9% year-over-year increase and a staggering 26.6% gain since February 2020, according to Realtor.com. Over the past six months, mortgage rates have climbed an entire percentage point, pushing buyers to act before prices reach new highs, though a surge in demand continues to overwhelm builders confronting an ever-widening supply deficit.
Heightened demand is also speeding along the sales process, with February homes selling in an average of 47 days, a rate 17 days faster than last year and over a month quicker than in early 2020. Homebuyers looking to snag a home during the spring rush will face inflated prices and fierce competition, but an increase in new listings could offer a silver lining in an otherwise frenzied market.
“Buyers can expect to see an improvement in the number of homes for sale this spring, a much-anticipated development for housing markets,” says [George] Ratiu. “A growing share of homeowners [are] ready to move with pandemic-delayed plans, indicating they plan to list their properties. As we gaze toward a post-pandemic spring in the months ahead, markets are likely to benefit from [a] higher supply of both existing as well new homes.”
Four metropolitan areas that saw an improvement in listings are Riverside, CA (+6.3%), Phoenix (+4.2%), Austin, TX (+1.5%), and Sacramento, CA (+0.3%), marking the first time since October 2021 that any of the 50 largest metros saw an increase in homes for sale. Metros include the main city and surrounding towns, suburbs, and smaller urban areas.
Advertisement
Related Stories
Sales
What the NAR Commissions Settlement Means for Home Builders
The legal settlement will improve transparency during the home sales process, mitigate predatory practices, and help preserve profitability for home builders
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Sustainability
Mention of Eco-Friendly Home Features Is on the Rise in Sales Listings
Home listing descriptions using eco-friendly terms have been rising over the past five years in line with growing consumer interest in the environment and energy efficiency