February marked a transition from a seller’s market to a buyer’s market, according to recent data from RE/MAX. According to the RE/MAX National Housing Report, declining sales and growing inventory have pushed the market forward for buyers.
February's 4.2 percent downturn was the smallest since August 2o18, as home sales have declined year-over-year for seven consecutive months. Meanwhile, inventory grew by 5.8 percent in February year over year, the fifth consecutive month of year over year growth. Month over month, February saw more homes sold than in January, up by 10.2 percent.
“Trends of five months or more often indicate significant shifts, and the year-over-year trends in declining sales and rising inventory have both reached that length now,” said RE/MAX CEO Adam Contos. “It’s interesting to see the slowing sales and growing inventories that benefit buyers and at the same time the record prices that benefit sellers. The big picture supports an ongoing return to more balanced conditions.”
Additionally, the report states that in February, the median sales price increased to $240,000, up 5.5 percent year over year, and a February record. The metro areas with the lowest days on market were Omaha, Nebraska at 34, San Francisco at 37, and a two-way tie between Denver and San Diego at 42. The highest days on market averages were in Augusta, Maine at 120, Trenton, New Jersey at 113, and Hartford, Connecticut at 96.
“The next few months will determine whether the shift brings a wave of buyers into the market for the spring selling season. Members of our network are reporting high local demand along with a need for even more inventory. The optimism for a solid spring exists – and a more balanced market certainly contributes to it.”
The average days on the market for homes sold in February was up four days month over month, up to 63, a one day year over year gain.