Home prices climbed 16 percent year-over-year in February to an all-time high of $389,500 as the number of homes for sale fell to a new low, according to a Redfin report. The lack of inventory is holding back home sales, which were down 4 percent month-over-month, according to Redfin.
“An acute shortage of homes for sale continues to stymie buyers in the current market,” Redfin Chief Economist Daryl Fairweather said in a release. “Rather than dropping out of the housing market, homebuyers only seem to be getting even more voracious, driving prices up at a startling clip. Typically, rising mortgage rates weaken demand for homes. We don’t see demand weakening yet, but we will be watching to see if buyers back off or remain steadfast amidst rising borrowing costs.”
Median sale prices increased year-over-year in all but one of the 88 largest metro areas Redfin tracks: Bridgeport, Conn., where home prices fell 6 percent. The largest price increases were in North Port, Fla. (+29 percent), Phoenix (+28 percent) and Las Vegas (+28 percent).
Seasonally adjusted home sales in February were down 7 percent month-over-month and down 6 percent year-over-year. The biggest sales declines were in Rochester, N.Y. (-27 percent), Anaheim, Calif. (-21 percent) and Albany, N.Y. (-20 percent). The largest gains were in Houston (+22 percent), McAllen, Texas (+16 percent) and Tulsa, Okla. (+10 percent).
Seasonally adjusted active listings (homes for sale at any time during the month) fell 14 percent year-over-year to an all-time low in February. The only metro areas where the number of homes for sale increased were Elgin, Ill. (+22 percent), Detroit (+8 percent), Chicago (+5 percent) and Austin, Texas (+2 percent). The biggest year-over-year declines in active housing supply in February were in Greensboro, N.C. (-43 percent), Allentown, Pa. (-41 percent) and Fort Lauderdale, Fla. (-38 percent).
The largest declines in new listings in February were in Allentown, Pa. (-41 percent), Greensboro, N.C. (-39 percent) and Charlotte, N.C. (-23 percent). Listings rose the most in New York (+19 percent), Memphis, Tenn. (+17 percent) and Houston (+17 percent).
The typical home that sold in February went under contract in 25 days, eight days faster than a year earlier and the shortest time on market ever for a February. Nearly half (47 percent) of homes sold above list price, up 11 percentage points year-over-year and 5 points from month-over-month to the highest level seen in February.