During the final month of winter, supplies were scarcer than ever in the residential real estate market, according to Realtor.com’s preliminary analysis of data. Factoring in strong buyer demand, sales remained strong in February after a January in which the pace of existing-home sales was at a 10-year high.
Early birds were scrambling to get the homes, which are moving off the market 5 percent faster this February than a year ago, and five days quicker than in January. That’s even as prices remain at record highs.
“Spring has arrived early this year, at least in terms of the rapid decline in the age of inventory,” says Jonathan Smoke, Realtor.com’s chief economist. “Strong off-season demand powered new seasonal highs in prices and left us with a new low in available homes for sale. Potential sellers take note: This year is shaping up to favor you even more than last year.”
Another indication of the continuing strength of buyer demand is that the median list price remains level at $250,000, which is a steep 9 percent higher than one year ago. If this figure holds by the end of the month, it would be a record for February. Buyers also are ramping up their search online, with Realtor.com seeing the highest year-over-year increase in average views per listing since April 2015.
While nearly 425,000 new listings will have entered the market in February, there still aren’t enough to meet buyer demand. In fact, the sharp double-digit decline in for-sale housing inventory observed since October is continuing.
All this may sound like music to sellers’ ears, but not so much for buyers. However, buyers who are able to land the home of their dreams can reassure themselves that their investment likely will be a solid one—especially in Realtor.com’s hottest markets, where homes are selling fastest and there’s the most demand.
This month’s ranking has California dominating the list with 12 markets, but five other states made a showing: Texas, Colorado, Ohio, Michigan and Massachusetts.
Leading the list is Vallejo, where the median days on market fell by almost half, powering it back into the top spot for the first time since August.
