U.S. home-sale prices in February increased just 0.6 percent year-over-year to a median of $287,400, according to a report by Redfin.
Redfin said the home-sale price increase during February was the smallest increase since March 2012.
“When home prices are going up quickly, buyers feel like they are forced to move fast and purchase a home before prices rise even more. Now that home prices are growing slower than inflation, there really isn’t much downside to taking your time,” Redfin Chief Economist Daryl Fairweather said in a release.
“And now that mortgage rates are no longer going up every week, buyers in many markets have the luxury of knowing that whether they buy now or later they will pay about the same for a home,” Fairweather said.
During February, Redfin said the typical home that sold went under contract in a median 59 days, two days longer than a year earlier.
“Because homes are sitting on the market longer and the market is less competitive than last year, first-time homebuyers now have a better chance of winning a home,” Fairweather said. “That could mean more potential buyers in the spring. Home sales are already rebounding this month, and that trend may continue now that the market is more balanced.”
According to the report, home prices in February fell in 10 of the 85 largest metro areas, with the largest year-over-year declines in Bridgeport, Conn. (-15.2 percent); San Jose, Calif. (-11.3 percent); and San Francisco (-7.9 percent). Metros with the biggest increases in home prices from last year were led by Newark, N.J. (12.2 percent); Milwaukee (11.8 percent); and Buffalo, N.Y. (11.7 percent).