Realtor.com® February Housing Report: Home Prices Hit All-Time High Ahead of Spring Buying Season
In February, listing prices grew at a double-digit annual pace nationwide (+12.9%) and in nearly half of the 50 largest U.S. markets, led by the southern (+12.5%) and western (+12.1%) regions
SANTA CLARA, Calif., March 3, 2022 /PRNewswire/ -- New data suggests Spring homebuying fever has already set in, as the U.S. median listing price hit a new all-time high of $392,000 in February, according to the Realtor.com® Monthly Housing Trends Report released today. Additionally, home prices grew at an unusually-fast February pace in many of the 50 largest metros, led by Las Vegas, Miami and Tampa, Fla. with annual increases of at least 31% each.
"Over the last five years, we have seen home prices break records early in the season as buyers try to get ahead of the competition. But this is the first time the record has been broken in February, signaling that competition is already heating up weeks before the start of the Spring buying season in a typical year," said Realtor.com® Chief Economist Danielle Hale. "While the number of homes on the market remains woefully behind buyer demand, in February we saw declines in new listings improve for the first time since November 2021, indicating potential hope on the horizon. Whether inventory continues to improve will depend on a variety of economic and geopolitical factors, including the conflict in Ukraine and mortgage rate hikes, which haven't impacted home sales or price growth so far, but will increasingly lessen buyers' purchasing power."
February 2022 Housing Metrics – National |
||
Metric |
Change Over Feb. 2021 |
Change Over Feb. 2020 |
Active Listing Count |
-24.5% |
-62.6% |
New listings |
-0.5% |
-14.5% |
Median Listing Price |
12.9% |
26.6% |
Median Days on Market |
-17 days |
-32 days |
The national listing price broke a new record in February, signaling an early start to the 2022 Spring buying season
Housing affordability is increasingly an issue for 2022 buyers, partly due to climbing mortgage rates, which reached the highest level in nearly three years within the first two months of the year. With further hikes looming, February data suggests competition intensified as motivated buyers raced to lock in relatively affordable monthly payments. As a result, the national listing price exceeded the record set during the 2021 summer frenzy. While it's not uncommon for home price growth to begin accelerating in February, Realtor.com® data history shows listing prices didn't surpass previous peaks until at least March in every year from 2017-2021.
- In February, the U.S. median listing price increased 12.9% year-over-year to a new all-time high of $392,000, surpassing the 2021 peak (at $385,000 in July).
- Home prices posted smaller yearly gains in the 50 largest U.S. markets, up by an average of 7.8% year-over-year, mostly due to a larger number of smaller homes coming on the market. On average, big metro listing prices per square foot (+11.6% year-over-year) increased nearly as quickly as the overall national pace.
- February's biggest listing price gains were in southern (+12.5%) and western (+12.1%) metros, led by Las Vegas (+39.6%), Miami (+31.6%) and Tampa, Fla. (+31.5%).
- Home prices declined over last year in 13 markets, including Rochester, N.Y. (-18.2%), Detroit (-16.5%) and Pittsburgh (-14.0%). However, on a square foot basis, February listing prices were down in just five metros.
Inventory improvements offer buyers a potential light in the supply shortage storm
For the first time since last fall, yearly inventory declines improved slightly in February, largely due to rising numbers of new sellers. In fact, during the final two weeks of the month, more new sellers entered the market than during the same time last year. Further new listings growth, which is typical heading into the spring, will be key to inventory's forecasted recovery from 2021 lows. However, with 5.8 million new homes missing from the market and millions of millennials at first-time buying ages, housing supply faces a long road to catching up with demand. Additionally, recent bigger picture developments, like geopolitical tensions in Europe, could play a wildcard in consumer sentiment related to major financial decisions, including homebuying and selling.
- The U.S. inventory of active listings declined 24.5% year-over-year in February, improving slightly over last month's annual gap (-28.4%). However, there were still 122,000 fewer available listings than during a typical day in February 2021 and inventory was down 62.6% from February 2020.
- Relative to all active inventory, annual declines in new listings improved more significantly in February, down just 0.5% nationwide versus the 9.1% drop registered last month. Additionally, new listings grew on a year-over-year basis in the final two weeks of the month.
- Inventory remained below February 2021 levels in 46 of the 50 largest U.S. markets, but grew in Riverside, Calif. (+6.3%), Phoenix (+4.2%), Austin, Texas (+1.5%) and Sacramento, Calif. (+0.3%), marking the first month that supply increased in any large metro since October 2021.
- In another early Spring sign of rising for-sale home options, more new sellers entered the market than last year in nearly half (23) of the 50 largest markets. Furthermore, seven of these metros posted double-digit annual new listings gains: Milwaukee (+21.9%), New York (+19.5%), Oklahoma City (+16.3%), Kansas City (+15.6%), Philadelphia (+15.5%), Portland, Ore. (+12.5%) and Birmingham (+11.6%).
Homes continue to fly off the market, selling a month faster than in 2017-2019
Following a record-setting first month of the year, February time on market trends showed no signs of slowing down. Likely motivated in large part by climbing mortgage rates, buyers snatched up the inventory of new and active listings more quickly than in any prior February, and over a month faster than in 2017-2019, before the onset of COVID. Relative to national time on market, home sales notched an even faster-moving February across the 50 largest U.S. metros, only three of which posted time on market gains.
- In February, the typical U.S. home spent 47 days on market, over two weeks faster (-17 days) than in 2021 and over a month (-38 days) faster than typical February timing from 2017-2019.
- Homes moved even more quickly in the 50 largest U.S. metros, at an average of 39 days on market in February. Homes sold in the least amount of time, at 16 days or less each, in Denver, San Jose, Calif. and Nashville, Tenn.
- Among large metros, February's biggest declines in time on market were registered in Miami (-34 days), Orlando, Fla. (-29 days) and Indianapolis (-21 days). Time on market increased in just three metros, which were Buffalo, N.Y. (+10 days), Oklahoma City (+6 days) and Cincinnati (+4 days).
"It can be easy to get swept up in competition, so buyers should take the time to assess how higher mortgage rates could impact the affordability of monthly payments and consider adding a cushion at the top of their budgets. Tools like the Realtor.com® Mortgage Calculator can help you scenario plan for various rates so you're better prepared – not only for a successful buying experience, but also to comfortably afford your monthly housing costs once you have the keys in-hand," said George Ratiu, Manager of Economic Research and Senior Economist at Realtor.com®.
Ratiu's advice is also relevant to the many sellers simultaneously buying a home, who can use tools like the Realtor.com® Seller's Marketplace to help them manage the many fast-moving parts of both processes and explore selling options like initial cash offers from Opendoor.
January 2022 Housing Metrics – 50 Largest U.S. Metros |
|||||||||
Metro |
Median |
Median |
Median |
Active |
New |
Median Days on |
Median Days on |
Price |
Price |
$390,000 |
7.6% |
8.8% |
-17.4% |
-1.0% |
37 |
-5 |
10.8% |
1.4% |
|
$570,000 |
31.0% |
15.4% |
6.6% |
-3.1% |
27 |
-17 |
6.2% |
2.6% |
|
$300,000 |
-3.8% |
6.0% |
-6.2% |
4.9% |
40 |
-15 |
13.5% |
0.7% |
|
$257,000 |
-1.5% |
6.2% |
-19.8% |
16.2% |
38 |
-19 |
11.0% |
-0.5% |
|
$749,000 |
10.2% |
12.5% |
-29.4% |
-8.7% |
29 |
-8 |
6.8% |
-0.9% |
|
$210,000 |
-4.5% |
5.1% |
-10.8% |
0.0% |
71 |
0 |
9.1% |
-0.8% |
|
$400,000 |
11.0% |
15.5% |
-34.5% |
-25.0% |
31 |
-4 |
10.0% |
0.0% |
|
$325,000 |
-4.4% |
-1.0% |
-29.2% |
-14.3% |
43 |
-5 |
10.5% |
0.5% |
|
$334,000 |
2.8% |
14.5% |
-15.1% |
8.0% |
66 |
4 |
10.2% |
-0.4% |
|
$175,000 |
-12.5% |
0.9% |
-9.2% |
-8.5% |
59 |
-8 |
12.5% |
0.0% |
|
$325,000 |
8.3% |
12.3% |
-4.7% |
-3.5% |
30 |
-9 |
9.8% |
-2.9% |
|
$404,000 |
12.5% |
17.3% |
-34.2% |
-0.3% |
34 |
-8 |
6.4% |
-2.7% |
|
$649,000 |
18.0% |
7.1% |
-30.8% |
-7.0% |
10 |
-12 |
4.3% |
-3.1% |
|
$215,000 |
-17.3% |
-2.5% |
-4.4% |
12.1% |
38 |
-9 |
12.5% |
2.0% |
|
$360,000 |
20.0% |
27.2% |
-64.0% |
-2.4% |
63 |
7 |
7.3% |
0.7% |
|
$360,000 |
8.1% |
13.8% |
-23.8% |
-5.8% |
43 |
-9 |
12.2% |
0.5% |
|
$290,000 |
9.4% |
14.8% |
-25.6% |
-1.8% |
44 |
-20 |
11.2% |
-1.3% |
|
$393,000 |
21.0% |
22.8% |
-26.3% |
1.9% |
41 |
-16 |
9.3% |
-2.4% |
|
$385,000 |
10.0% |
16.7% |
-3.1% |
17.7% |
67 |
-3 |
7.8% |
-1.3% |
|
$474,000 |
39.5% |
28.6% |
-31.4% |
-9.2% |
27 |
-12 |
8.6% |
-0.3% |
|
$919,000 |
-8.1% |
2.8% |
-36.0% |
-11.0% |
29 |
-6 |
6.4% |
-2.3% |
|
$280,000 |
7.7% |
10.3% |
-7.2% |
2.1% |
39 |
-3 |
13.1% |
1.7% |
|
$227,000 |
-1.3% |
11.6% |
-14.0% |
-4.9% |
39 |
-18 |
9.3% |
-1.7% |
|
$525,000 |
31.6% |
23.1% |
-56.0% |
-11.4% |
57 |
-31 |
8.0% |
-3.3% |
|
$270,000 |
-10.0% |
1.1% |
-6.0% |
36.2% |
37 |
-18 |
12.5% |
2.6% |
|
$400,000 |
8.1% |
-3.7% |
-24.7% |
0.8% |
36 |
-5 |
6.3% |
0.8% |
|
$470,000 |
19.0% |
19.0% |
-42.0% |
-21.6% |
16 |
-9 |
8.3% |
0.4% |
|
$345,000 |
6.2% |
5.1% |
-29.9% |
-1.1% |
59 |
-6 |
13.6% |
-1.1% |
|
$695,000 |
7.1% |
26.9% |
-14.4% |
21.2% |
68 |
-18 |
8.2% |
0.2% |
|
$333,000 |
18.9% |
18.6% |
-22.4% |
20.9% |
55 |
10 |
12.4% |
0.1% |
|
$399,000 |
26.7% |
27.6% |
-49.4% |
3.8% |
36 |
-29 |
8.4% |
-6.7% |
|
$300,000 |
-7.7% |
3.7% |
-9.7% |
9.6% |
59 |
-6 |
13.0% |
0.2% |
|
$500,000 |
19.3% |
20.7% |
5.6% |
1.8% |
33 |
-2 |
10.8% |
0.4% |
|
$215,000 |
-14.0% |
-3.9% |
-10.7% |
5.5% |
84 |
-3 |
14.1% |
1.9% |
|
$560,000 |
10.7% |
11.5% |
-14.4% |
20.8% |
32 |
-7 |
21.2% |
0.1% |
|
$449,000 |
5.7% |
12.5% |
-24.0% |
0.7% |
39 |
-17 |
7.0% |
-0.6% |
|
$430,000 |
8.9% |
20.7% |
-55.7% |
-23.4% |
23 |
-12 |
5.0% |
-3.8% |
|
$375,000 |
1.4% |
12.1% |
-35.9% |
5.6% |
43 |
-8 |
7.2% |
-3.0% |
|
$550,000 |
11.1% |
15.3% |
4.4% |
7.4% |
31 |
-4 |
7.8% |
1.2% |
|
$225,000 |
-16.6% |
-4.3% |
-25.9% |
-3.8% |
23 |
-13 |
6.5% |
-0.7% |
|
$628,000 |
14.2% |
14.6% |
-2.9% |
0.6% |
26 |
-4 |
9.7% |
1.3% |
|
$349,000 |
14.3% |
19.6% |
-20.2% |
-12.6% |
51 |
-1 |
8.9% |
-0.2% |
|
$850,000 |
3.0% |
7.2% |
-32.5% |
-7.2% |
24 |
-5 |
5.6% |
-2.4% |
|
$995,000 |
-0.5% |
4.4% |
-24.5% |
-1.7% |
21 |
-6 |
5.5% |
-1.5% |
|
$1,329,000 |
10.8% |
11.8% |
-42.3% |
-9.3% |
16 |
-11 |
2.5% |
-5.0% |
|
$728,000 |
12.9% |
1.7% |
-36.5% |
0.6% |
23 |
-12 |
3.6% |
-2.2% |
|
$265,000 |
4.4% |
7.9% |
-22.9% |
-8.4% |
62 |
-13 |
8.4% |
-0.1% |
|
$390,000 |
30.0% |
31.1% |
-39.2% |
-8.2% |
34 |
-15 |
10.1% |
-3.8% |
|
$325,000 |
5.5% |
8.5% |
-36.8% |
-7.6% |
27 |
-8 |
6.9% |
-0.6% |
|
$525,000 |
7.2% |
0.0% |
-16.5% |
6.8% |
34 |
-5 |
8.6% |
-1.0% |
|
Methodology
Realtor.com® housing data as of February 2022. Listings include active inventory of existing single-family homes and condos/townhomes for the given level of geography; new construction is excluded unless listed via an MLS. Note: With the release of its January 2022 housing trends report, Realtor.com® incorporated a new and improved methodology for capturing and reporting housing inventory trends and metrics (see more details here). As a result of these changes, this release is not directly comparable with previous data releases and reports. However, future data releases, including historical data, will consistently apply the new methodology.
About Realtor.com®
Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. 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. For more information, visit Realtor.com®.
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