The latest data from the RE/MAX National Housing Report indicates that the spring 2023 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 almost 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 believes 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 says. “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.
Laurie Thiel, Broker/Owner of RE/MAX Equity Group in Beaverton, OR, is beginning to notice the influx of homebuying and selling that typically increases further into springtime.
“As the market has stabilized, our agents are experiencing increased activity with homebuyers and sellers. Even though the time to sell a home has increased, inventory in the Portland metropolitan market remains limited,” Thiel shares.
Charlie Bengel, Broker/Owner of RE/MAX Allegiance in Alexandria, VA says he continues to see homes receiving multiple offers and advises prospective homebuyers to get in the game now given the continued conditions of constricted inventory.
“Despite the uncertainty in interest rates, we continue to see multiple offers on many properties that show well and are priced appropriately,” Bengel explains. “We are encouraging sellers to come to market more quickly due to the low inventory as opposed to waiting. “
Here’s the need-to-know data from the 50 U.S. metro areas surveyed for the February 2023 RE/MAX National Housing Report:
Demand for Homes Remains High
The overall number of home sales in February 2023 was up 16.8% compared to January 2023 and down 24.4% compared to February 2022. When analyzing the 50 metro areas surveyed in the February report, the cities where the home sales decreased the most compared to last year were Anchorage, AK at -42.1%, Miami, FL at -37.2%, and New York, NY at -35.5%. No metro area had a year-over-year sales percentage increase in February 2023.
Homes for Sale Linger Longer on the Market
Homes sold in February 2023 were on the market for an average of 45 days – three days less than January 2023 but two weeks longer than a year ago. The metros with the lowest days on market were Baltimore, MD at 17, Manchester, NH at 19, and Washington, DC at 20. The highest days on market averages were in Bozeman, MT at 79, Fayetteville, AR at 78, followed San Antonio, TX and Seattle, WA, tied at 64.
More Homes are on the Market Compared to This Time Last Year
The number of homes for sale in February 2023 was down 7.5% from January 2023 and up 55.0% from February 2022. Based on the rate of home sales in February 2023, the months’ supply of inventory was 1.7, down from 2.0 compared to January 2023, and up compared to 1.0 in February 2022. In February 2023, the markets with the lowest months’ supply of inventory were Albuquerque, NM and Seattle, WA, tied at 0.7, followed by a three-way tie between Charlotte, NC, Hartford, CT, and Washington, DC at 0.8. The markets with the highest months’ supply of inventory were Bozeman, MT at 3.3, San Antonio, TX at 3.1, and New Orleans, LA at 3.0.
Ready to make a move this spring? Contact a local RE/MAX agent today.
Recommended For You
Get RE/MAX News delivered to your inbox! Sign up for News Alerts in the footer below.
Written by MELANIE CLARK
