Stage is Set for Competitive Spring Home Buying Season

- For sale homes declined by 15.3 percent in February year-over-year, and inventory in large markets decreased by 16.3 percent

- The February national median listing price was $310,000, up 3.9 percent year-over-year and prices are re-accelerating

- Nationally, homes sold in 80 days in February, three days more quickly than last year

News provided by

realtor.com

Mar 05, 2020, 09:00 ET

SANTA CLARA, Calif., March 5, 2020 /PRNewswire/ -- The U.S. housing market continued to tighten in February as the inventory of for sale homes saw additional listings evaporate and home prices rose, according to realtor.com^®'s February Housing Trends Report released today. The continuation of these trends could signal a competitive spring homebuying season on the horizon.

Based on realtor.com®'s analysis, national housing inventory declined 15.3 percent year-over-year last month, while the median U.S. listing price grew by 3.9 percent, to $310,000. February's inventory decline, which amounted to a loss of 184,000 listings, was the largest year-over-year decline since realtor.com began tracking inventory data. To view the complete February Housing Trends Report, which includes additional insights and metro level data for inventory, median listing prices, days on market, and share of price reductions, click here.

Twenty-five of the nation's 50 largest metros saw the number of homes for sale decline more than 20 percent. Inventory fell the fastest in Phoenix, San Diego, Calif., and San Jose, with decreases in excess of 36 percent over last year.

"The Fed's decision to cut rates by 50 basis points earlier this week in reaction to concerns over the spread of Covid-19 is good for home buyers, but only if they can find a home to purchase. Finding a home remains the chief challenge in today's inventory-starved market," said realtor.com Chief Economist Danielle Hale. "Given the still-decreasing number of homes for sale in many markets, if a listed home is priced well, expect it to sell quickly this year. Construction of new homes will need to jump into overdrive in order to bring the nation's supply and demand for housing back towards equilibrium.

"Additionally, it remains to be seen how the recent growing concern over the spread of Covid-19 will impact consumer spending, at least in the short-term," Hale added.

The lack of inventory prompted listing prices to increase 3.9 percent to $310,000, a slightly accelerated pace compared to last month. The U.S. median listing price had grown by 6 to 8 percent year over year until autumn of 2019 when growth began to slow, finally hitting a low of 3.1 percent in December.

Home prices rose in 46 of the 50 largest markets in February and were on average 6.5 percent higher than last year. Philadelphia led the nation with the greatest price growth, topping out just above 17 percent at $295,000.

As buyers grapple with a lack of inventory and rising prices, homes sold at a faster rate than last year. Nationally, homes sold in 80 days in February, three days quicker than last this time last year. This trend was exaggerated in the nation's largest metros where homes sold five days faster than last year on average. Hartford, Conn.; Raleigh, N.C.; and Washington, D.C. saw homes selling at the fastest rates in the nation compared to last year, each with homes selling more than two weeks faster than last year.

Greatest Declines in Inventory - Metro Level

Metro	Active Listing Count YoY	Median Listing Price	Median Listing Price YoY	Median Days on Market	Median Days on Market Y-Y
Phoenix-Mesa-Scottsdale, Ariz.	-42.7%	$400,000	14.3%	48	-4
San Diego-Carlsbad, Calif.	-36.6%	$749,100	12.0%	37	4
San Jose-Sunnyvale-Santa Clara, Calif.	-36.2%	$1,199,900	11.6%	22	-4
Denver-Aurora-Lakewood, Colo.	-35.9%	$559,600	12.0%	38	6
Seattle-Tacoma-Bellevue, Wash.	-33.7%	$600,100	1.3%	38	-8
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	-29.4%	$295,000	17.3%	69	-10
Cincinnati, Ohio-Ky.-Ind.	-28.6%	$284,500	12.7%	66	-5
Charlotte-Concord-Gastonia, N.C.-S.C.	-28.2%	$348,600	5.6%	64	-6
Portland-Vancouver-Hillsboro, Ore.-Wash.	-28.1%	$485,000	1.1%	58	10
Riverside-San Bernardino-Ontario, Calif.	-26.8%	$419,100	4.9%	60	3
Providence-Warwick, R.I.-Mass.	-25.2%	$389,100	8.8%	66	-10
Sacramento--Roseville--Arden-Arcade, Calif.	-25.0%	$500,100	8.7%	40	-10
Nashville-Davidson--Murfreesboro--Franklin, Tenn.	-25.0%	$371,000	3.8%	36	-9
Rochester, N.Y.	-24.8%	$230,000	15.0%	45	-15
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	-23.6%	$495,100	10.7%	39	-16
Tampa-St. Petersburg-Clearwater, Fla.	-22.9%	$280,000	4.2%	61	-5
San Francisco-Oakland-Hayward, Calif.	-22.3%	$949,100	8.2%	18	-9
Los Angeles-Long Beach-Anaheim, Calif.*	-21.8%	$959,900	N/A	66	N/A
Austin-Round Rock, Texas	-21.7%	$360,100	2.9%	61	-3
Boston-Cambridge-Newton, Mass.-N.H.	-21.4%	$600,100	9.2%	55	-7
Virginia Beach-Norfolk-Newport News, Va.-N.C.	-20.5%	$310,500	8.9%	57	-11
Baltimore-Columbia-Towson, Md.	-20.5%	$320,100	6.7%	66	-6
Memphis, Tenn.-Miss.-Ark.	-20.5%	$237,100	13.2%	79	3
Kansas City, Mo.-Kan.	-20.4%	$330,100	6.0%	94	3
Orlando-Kissimmee-Sanford, Fla.	-20.0%	$325,100	8.4%	68	-1
Oklahoma City, Okla.	-18.9%	$257,700	9.1%	53	-15
Cleveland-Elyria, Ohio	-18.8%	$189,600	1.6%	81	-2
Hartford-West Hartford-East Hartford, Conn.	-18.5%	$275,000	3.8%	74	-22
Columbus, Ohio	-18.4%	$299,800	14.2%	58	-10
Birmingham-Hoover, Ala.	-17.6%	$256,400	9.2%	71	-13
Las Vegas-Henderson-Paradise, Nev.	-17.5%	$328,000	5.8%	46	-4
Indianapolis-Carmel-Anderson, Ind.	-17.5%	$275,000	8.0%	80	-2
St. Louis, Mo.-Ill.	-15.7%	$220,000	2.3%	89	1
Buffalo-Cheektowaga-Niagara Falls, N.Y.	-15.6%	$200,000	9.6%	67	0
Milwaukee-Waukesha-West Allis, Wis.	-15.1%	$320,000	6.7%	57	-11
Pittsburgh, Pa.	-15.1%	$200,100	14.3%	96	-12
New Orleans-Metairie, La.	-14.2%	$284,600	2.9%	80	-3
Jacksonville, Fla.	-13.9%	$320,000	3.9%	74	-6
Richmond, Va.	-13.8%	$327,000	3.2%	59	-5
Miami-Fort Lauderdale-West Palm Beach, Fla.	-13.5%	$410,000	3.7%	88	-4
Raleigh, N.C.	-12.5%	$367,800	4.4%	64	-18
Louisville/Jefferson County, Ky.-Ind.	-12.3%	$255,000	-1.9%	64	-2
Atlanta-Sandy Springs-Roswell, Ga.	-10.5%	$325,000	2.4%	56	0
Dallas-Fort Worth-Arlington, Texas	-9.6%	$340,100	-1.3%	56	-3
Detroit-Warren-Dearborn, Mich	-8.7%	$229,100	4.1%	59	-4
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	-8.1%	$559,100	5.9%	80	-2
Houston-The Woodlands-Sugar Land, Texas	-5.3%	$306,000	-1.5%	60	-6
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	-4.0%	$320,000	2.4%	45	-11
San Antonio-New Braunfels, Texas	2.6%	$290,000	0.0%	71	1
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	12.2%	$375,100	-3.4%	49	-11

*Some data points for Los Angeles have been excluded due to data unavailability.

About realtor.com^®Realtor.com^® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com^® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com^® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS^®. For more information, visit realtor.com^®.