Home Sales Slow, Prices Increase

DENVER, Co.—With results nearly identical to January, the RE/MAX National Housing Report, a survey of MLS data in 52 metropolitan areas, showed that home sales slowed in February while prices increased by double digits over last year. The median home price rose 11.6 percent compared to the same month in 2013, and is now at $180,450. With unusually harsh winter storms impacting appraisals, inspections and closings, home sales dropped by 8.8 percent.

“A combination of severe weather and low inventories appears to have slowed February home sales. The improving economy, increasing new-home construction and significant pent-up demand should all be critical factors as we move into the traditionally stronger sales months of spring and summer,” said Margaret Kelly, RE/MAX CEO.

A few other highlights from the RE/MAX National Housing Report in February include:

  • February becomes only the third month in the last 32 months to experience a year-to-year sales decline. Of all 52 metro areas surveyed, 42 saw year-to-year sales decrease.
  • Due to low inventories, many metros that saw the highest price increases also saw the largest drop in sales from last year, including: Las Vegas, Detroit, Orlando, San Diego and San Francisco.
  • The Median Sales Price in February was $180,450, which was 4.3 percent higher than in January and 11.6 percent higher than the same month last year. This increase represents a 25 consecutive month increase in the Median Sales Price.
  • Among the 52 metro areas surveyed, 44 reported higher sales prices than one year ago. Double-digit increases were reported by: Detroit, San Francisco, Las Vegas, Atlanta, Los Angeles and Orlando.
  • Due to continued high demand and a reduced inventory of homes for sale, the average Days on Market was 80 in February, which was five days more than the average in January but nine days less than the average in February 2013.
  • February marks the 21st consecutive month with an average Days on Market below 90.

More results from the February National Housing Report or RE/MAX can be found here