SAN FRANCISCO–In February home prices hit a four-year high, marking a 72-month run during which median home prices rose each month nationally, according to a new report from Redfin.
But as CUToday.info reported, the ongoing increases in home prices has not been accompanied by similar increases in home sales numbers. While national median prices rose almost 9% to $285,000 in February, the number of homes for sale dropped more than 11% from January and were flat compared to one year earlier. The two trendlines are actually linked, as the limited inventory of homes has contributed to the price increases.
According to Redfin, just six of 73 metropolitan markets saw sales grow by double digits from 2017. Louisville led the nation in year-over-year sales growth, up 25%, followed by Greenville, S.C., which was up 18%.
Inventory dropped most in New York State, where three metros saw downswings compared to 2017, Redfin reported, with the Rochester and Buffalo markets both down by 40%, while Albany declined 30%.
Atlanta also posted a 33% decline in inventory.
Other findings in the Redfin data:
- Time on the market for homes sold in February was 53 days, one week faster than a year earlier. However, many markets are much faster. In Seattle, half of all homes pending sales closed in just eight days, while in Denver and San Jose closings took place after nine and 10 median days on the market, respectively. Homes in Oakland and San Francisco spent two weeks on the market.
- The most competitive market in February was San Jose, Calif., where 83% of homes sold above list price. Three-quarters of homes for sale in San Francisco did the same. Oakland, Seattle, and Tacoma, Wash., also saw homes close significantly above asking price. Overall, Redfin found 21% of homes that sold in February went for more than their list price, nationally. That number is up 20% from last year.
- The median value of off-market homes was $283,300, a 9% increase over 2017. Approximately two-thirds of homes on the market in February were priced above their Redfin Estimate value.