Home sales set a new high for the month as inventory continued to dwindle.
Purchasing a home is one of the most complex and important financial decisions a person can make in their lifetime. Throw in the market conditions experienced in February 2021 with soaring sales prices and a 40%-plus drop in housing supply year over year, and it becomes even more complicated. It’s no surprise, then, that a recent report from the National Association of REALTORS found that all generations of buyers and sellers continued to utilize a real estate agent or broker as their top resource when buying or selling a home. A full-time, experienced real estate professional thrives in this complex housing market, helping buyers and sellers navigate various scenarios brought on by the imbalance in supply and demand.
Here’s a breakdown of what happened in February according to the latest RE/MAX National Housing Report:
1. Sales Stayed High, Inching Closer to Spring Selling Season
Of the 53 metros measured in the RE/MAX report, the overall average number of home sales is up 0.3% compared to January 2021, and up 5.7% compared to February 2020. Leading the year-over-year sales percentage increase were Augusta, ME at +39.7%, New York, NY at +28.6% and Honolulu, HI at +25.1%.
2. Sellers Continued to See Rising Sales Prices
The median home price reached $291,000 in February – the highest in the 13-year history of the report. No metro area saw a year-over-year decrease in Median Sales Price, and 45 metro areas increased year over year by double-digit percentages, led by Boise, ID at +29.6%, Augusta, ME at +26.5% and Pittsburgh, PA at +25.8%.
3. Homes Sold Fast for a February
Days on Market, the number of days between when a home is first listed in an MLS and a sales contract is signed, set a February record of 42 days. In fact, homes sold on average 18 days faster than last February. The metro areas with the lowest Days on Market were Boise, ID at 17, Nashville, TN at 21 and Omaha, NE at 22. The highest Days on Market averages were in Des Moines, IA at 94, Miami, FL at 89 and Augusta, ME at 87.
4. Inventory Remained Limited
In February, inventory continued to drop to record lows. Months Supply of Inventory dropped to 1.6, which was lower than any previous month in report history and down from 3.4 in February 2020. Of the 53 metro areas surveyed, only one metro area reported a months supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory included a three-way tie at 0.5 months among Albuquerque, NM, Denver, CO, and Boise, ID and a four-way tie at 0.6 between Raleigh-Durham, NC, Charlotte, NC, Phoenix, AZ and Seattle, WA.
In all, several report records for February were set: most home sales, highest price, lowest inventory and fewest days on market.
Adam Contos, CEO of RE/MAX Holdings, Inc., stresses the value of a professional real estate agent in a challenging market and foresees a potential rebalance in the inventory crisis with favorable conditions for buyers rebounding in the near future.
“The shrinking inventory continued to fuel ongoing bidding wars, and our agents report some homes selling for well above listing price,” Contos says. “It’s a complicated, competitive market, with buyers having to act quickly and aggressively to get the home they want. Conditions seem to be keeping some potential sellers on the sidelines, but that could change if or when they see more move-up options on the market. With seasonality, still-low interest rates, and gains in new construction, we hope to see some relief in supply during the coming months. The expertise of a full-time, experienced real estate professional who can guide homebuyers and sellers through any environment has never been more valuable.”
Article originally appeared on RE/MAX.
