SEATTLE–Home prices were up 7.2% in February, marking 60 consecutive months of annual increases since home prices bottomed in early 2012, according to new data released by Redfin.
Redfin said home sales gained a tepid 1.8%, constrained by a continuing inventory shortage, and the number of homes for sale fell 12.9% year over year in February, the third month in a row that inventory declined by double digits.
“The total level of home equity reached a new peak at the close of 2016, according to recent Fed data,” said Redfin Chief Economist Nela Richardson in a statement. “While great for homeowners, continuously strong price growth across the U.S. since 2012 has posed significant challenges for first-time buyers, especially given such low supply in affordable price-tiers. There is a silver lining on the horizon, however. Rising prices and increased equity may tip the scales for homeowners who have been delaying their decision to move up, which could add much-needed starter-home inventory to the market.”
Buyer demand remained robust during February, with Redfin saying market speed increased again, making for the fastest February the company has recorded since 2010. The typical home that sold last month went under contract in 60 days, eight days faster than one year prior. Nearly 15% of all homes listed for sale in February were off the market within two weeks, up from 11.7% last year, Redfin said.
The company’s home market, Seattle, was the fastest market, with nearly half of all homes pending sale in just 12 days, down from 13 days from a year earlier. Oakland, Calif., and Denver were the next fastest markets with 15 and 18 median days on market, followed by San Jose, Calif. (21). and San Rochester, N.Y., had the largest decrease in overall inventory, falling 42.4% since last February.
Provo, Utah had the highest increase in the number of homes for sale, up 30.7% year over year, followed by Knoxville, Tenn. (21.6%) and New Orleans (16.1%), according to Redfin.