RE/MAX: Agents Report Jump in February Home Buying
RE/MAX, Denver, said February homes sales jumped from both January and a year ago.
The company’s monthly National Housing Report said nationwide home sales increased by 5.8 percent in February from January, and by 4.8 percent from a year ago. Over the past 12 months, the average year-over-year increase in home sales has been 5.8 percent, with only two months, November and October, experiencing sales not above year-ago sales.
RE/MAX reported the Median Sales Price of all homes sold in February was $198,000, 5.9 percent higher than a year ago. RE/MAX CEO Dave Liniger said price increases have moderated over several months, with month-over-month declines seen in six of the past 12 months.
“So far in 2016, January and February have both seen home sales at a pace higher than one year ago, and last year was one of the best our industry has seen in quite some time,” Liniger said. “Consumers are benefiting from price increases that have been moderating, but many will still be dealing with an inventory lower than we’d like to see. Serious homebuyers who choose to work with an experienced agent will have a much easier time navigating this market.”
The report said inventory of homes for sale remains very tight in many markets across the country, with February at 13.3 percent lower than a year ago. At the rate of home sales in February, the national months’ supply of inventory was 4.0, down from 4.7 a year ago.
“A lack of inventory continues to affect home values, as eager buyers compete for a small selection of homes,” said Bob Walters, chief economist with Quicken Loans, Detroit. “Home prices continue their long march back from the big price drops experienced in the financial crash. As more and more Americans gain equity, this increases the number of homeowners who are financially able to sell their home and buy another one. We’re seeing the benefits of this virtuous cycle in rising home prices, which are also being greatly aided by historically low mortgage rates.”
Across the nation in February, 38 of the 53 metro areas surveyed reported higher sales on a year-over-year basis, with 16 experiencing double-digit increases, including Providence, R.I. +23.1%, Manchester, N.H. +20.5%, Augusta, Maine +19.3%, Hartford, Conn. +18.2%, Cleveland, Ohio +17.1% and Wilmington, Del. +16.8%.
On a year-over-year basis, the median sales price rose for the 49th consecutive month, but February’s increase of 5.9% is less than the 2015 monthly average of 7.6%. The report said although price increases have been moderating over the last few months, low inventory supply continues to be the most significant factor pressuring prices.
Average Days on Market for all homes sold in February was 76, up five days from January, but four days lower from a year ago. February marked the 35th consecutive month with a Days on Market average of 80 or less.
RE/MAX reported the number of homes for sale in February was 1.3 percent lower than in January and 13.3 percent lower from a year ago. The average loss of inventory on a year-over-year basis in 2015 was 12.2 percent.
