RE/MAX released their National Housing Report for March on Tuesday, covering the housing market trends for February 2018. This data is based on MLS info in 52 metro areas and shows while a lack of inventory is limiting February home sales, median month-over-month and year-over-year prices are showing favorable increases.
“We shared our outlook of the real estate market in the new year and it seems that even two months into 2018 we’re already seeing records break,” said RE/MAX CEO Adam Contos. “The February 2018 median sales price of $228,700 marks the 22nd consecutive month of year-over-year price increases.” The median sales price for February 2018 increased 8.1 percent over the previous year, as well as showing a 2.3 percent increase in a month-over-month analysis.
While the number of homes for sale in February 2018 was down by 1 percent from January 2018 and down 13.7 percent from the previous year, the days on market (DOM) average for the month was 62, a decrease by six days from the previous year, and an increase of two for the previous month. Based on this data, the month's supply of inventory decreased to 3.1, with 48 of the 52 metro areas surveyed reporting a months supply at or less than 6.0, making the national market favorable for sellers.
High demand markets such as Denver and San Francisco are seeing low supplies of inventory, a key factor as February marks the third consecutive month of year-over-year declines in home sales, decreasing by .2 percent compared to February 2017. Additionally, the DOM average of 62 days was the lowest of any February in the report’s nine-year history.
The lack of inventory in these hot markets has resulted in homebuyers migrating into ‘unexpected’ markets, such as Billings, Montana—which witnessed a 59 percent increase in home sales—and Boise, Idaho, witnessing a 25 percent sale increase. 26 of the 52 surveyed metro areas experienced a year-over-year sales increase including the previously mentioned areas, as well as Burlington, Vermont with a 20.4 percent increase, Milwaukee, Wisconsin with a 19.6 percent increase, and Richmond, Virginia with a 13.2 percent increase in closed transactions.
Click here to see the full press release for the RE/MAX March 2018 National Housing Report.