There is good news for people who want to sell their homes this month. According to new data from Realtor.com released on Thursday, the residential real estate market is expected to hit two new records in February–the highest listing prices for the month and the shortest time on market since the recession.
“The spring buying season is off to a booming start,” said Jonathan Smoke, Chief Economist for Realtor.com®. “Not only is the season starting a month early, February is also expected to see the fastest-moving inventory in a decade, as well as the highest home prices the month has ever seen. In addition, this year is shaping up to be even more of a seller’s market than last year.”
According to the National Association of Realtors (NAR), although February is a shorter month, there are usually slightly more home sales in February than in January, as early birds get a jump on the rush that typically begins in March.
The persistent demand for housing from prospective homebuyers has resulted in record-low levels of for-sale housing inventory. This trend, which began last October, has further intensified, making total inventory of for-sale properties much lower than one year ago. Although 425,000 new listings will enter the market in February, this number will still not be enough to fulfill buyer demand.
Key statistics from Realtor.com:
- Median age of inventory is estimated to end at 91 days, down 5 percent from last year, and down 5 percent from last month.
- Median listing price for February should reach a record high of $250,000, a 9 percent increase year-over-year and flat month-over-month.
- Listing inventory in February should show a 2 percent increase over January. Additionally, inventory should show a decrease of 11 percent year-over-year.
- Average views per listing in February are likely to end up more than 55 percent compared to this month last year.
- Realtor.com’s Hottest Markets receive 1 to 3.8 times the number of views per listing compared to the national average. These markets are also seeing inventory move 24 to 67 days more quickly than in the rest of the U.S. The hottest markets are also seeing inventory move faster than last month. On average, the median age of listings is 15 days less than the hottest markets compared to January.
Winners in Realtor.com [1]’s February Hotness Index:
- California again dominated the list with 12 markets, although five other states were represented (Texas, Colorado, Ohio, Michigan, Massachusetts).
- Vallejo-Fairfield saw days on market fall almost in half, powering it back into the top spot for the first time since last August.
The new entrants to the top 20 in February were Boulder, Colorado, Boston, and Midland, Texas, up 8, 14, and 15 spots, respectively, since January.