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Closings Inch Down Ahead of Anticipated Spring Surge

RE/MAX released its National Housing Report for February 2022, revealing home sales fell approximately 1% from January, planning for what is typically the year's biggest month-over-month incline in sales.

March is typically considered the start of the spring home-selling season, although the number of homes on the market remained at record lows. February's month-over-month decline in inventory of 6.8% was the smallest decrease in five months.

Meanwhile, home prices across the report's 51 metro areas started to move upward again after experiencing no increase in January and four small monthly declines in the second half of 2021. February's median sale price of $345,000 was the highest in report history, 3% higher than January's and up 17.3% from 2021. As a result, no metros experienced a year-over-year decrease in median sales price, while approximately 33 metro areas increased year-over-year by double-digit percentages.

Despite declining nearly 5% year-over-year, February's minor month-over-month drop in sales of 0.9% was in sharp contrast to an average increase of 4.4% from January to February over the past five years. March home sales also typically produce the largest monthly increase in closings each year.

The top 5 markets with the biggest YoY increase in median sales price compared to February 2021 were:

1. Salt Lake City, Utah ($516,759 compared to $410,000)

2. Las Vegas, Nevada ($420,000 compared to $330,000)

3. Tampa, Florida ($346,350 compared to $270,000)

4. Phoenix, Arizona ($450,000 compared to $350,000)

5. Billings, Montana ($350,000 compared to $270,000)

Highlights and the local markets leading various metrics for February include:

  • Of the 51 metro areas surveyed in February 2022, the overall average number of home sales is down 0.9% compared to January 2022, and down 4.7% compared to February 2021.
  • The markets with the biggest decrease in year-over-year sales percentage were Manchester, NH (-26.8%), Burlington, VT (-22.8%), and Albuquerque, NM (-18.9%).
  • Leading the year-over-year sales percentage increase were Houston, TX (+20.9%), Boise, ID (+18.0%), and Tulsa, OK (+10.5%).

"With such high demand and low inventory, houses are flying off the shelves right now – even at prices that have reached new highs. Having more listings on the market would be good for everyone, but the stage is set for another active spring selling season," said Nick Bailey, President and CEO of RE/MAX. "Buyers, feeling pinched by inflation, are snapping up new listings and racing to take advantage of near historically low rates before they go up. It's clear the dream of homeownership is still top of mind for many Americans.”

Inventory declined 6.8% from January to February following double-digit drops the previous four months and was down 28.9% from February of 2021. Monthly supply of inventory dropped to 1.2%, compared to 1.3% in January, and 1.8 in 2021. Homes spent an average of 35 days on the market in February – one day more than January, but eight less than in 2021.

The metro areas with the lowest number of days spent on the market were in Nashville, Seattle, Omaha, Nebraska, and Salt Lake City. The highest days on market averages were in Des Moines, Iowa, Miami, and New York.

The number of homes for sale in February 2022 was down 6.8% from January 2022, and down 28.9% from February 2021. A six-month supply indicates an equally balanced market between buyers and sellers. In February 2022, of the 51 metro areas surveyed, zero metro areas reported a month’s supply at or over six – typically considered a buyer's market. Among the markets with the lowest monthly inventory were Denver, Albuquerque, New Mexico, Charlotte, Raleigh-Durham, NC, and Seattle.

To read the full report, including charts and methodology, click here.

About Author: Demetria Lester

Demetria C. Lester is a reporter for DS News and MReport, with more than six years of writing experience. She has served as Editor-in-Chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington. She has covered events such as the Byron Nelson, Pac-12 Conferences, the Women in Dallas Film Festival, to freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, she is an avid jazz lover and reader. She can be reached at [email protected]
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