RE/MAX: Home Sales Pick Up Ahead of Spring Selling Season
RE/MAX, Denver, said a strong month-over-month increase in home sales during February could portend a more active spring selling market.
The latest data from the RE/MAX National Housing Report suggests the spring selling season may have arrived a little early this year. February home sales jumped 16.8% from January, marking the largest month-over-month home sales increase in nearly a year. And while home prices increased slightly month-over-month, February also marked the first year-over-year drop in prices since January 2012.
RE/MAX President and CEO Nick Bailey said this shift is a further indication that the U.S. housing market is continuing to rebalance. While industry headwinds still exist, a moderation in home prices is welcome news for prospective buyers – although much remains to be seen in this next year related to the rate environment.
“Prices have steadied and demand is strong, but the lack of available, affordable homes remains a challenge,” Bailey said. “Mortgage rates are top of mind for many buyers, and as they move up or down, sales activity should generally follow suit. That’s a big factor to watch as we move into the spring.”
February’s average close-to-list price ratio was 98%, meaning that on average, homes sold for 2% less than the asking price. In January, the ratio was 97%. Homes sold in February were on the market for an average of 45 days – three days less than January but two weeks longer than a year ago.
The report said of the 50 metro areas surveyed in February, cities where home sales decreased the most compared to last year were Anchorage, Alaska at -42.1%, Miami at -37.2%, and New York at -35.5%. No metro area had a year-over-year sales percentage increase in February.
Homes sold in February 2023 were on the market for an average of 45 days – three days less than January but two weeks longer than a year ago. The number of homes for sale in February fell by 7.5% from January but rose by 55.0% from a year ago. The months’ supply of inventory was 1.7, down from 2.0 in January but up from 1.0 in February 2022.
