Home Prices Hit Double Digit Yearly Growth

The national median home list price reached a new record high of $392,000 in February, a 12.9% year-over-year increase and a staggering 26.6% gain since February 2020, according to Realtor.com. Over the past six months, mortgage rates have climbed an entire percentage point, pushing buyers to act before prices reach new highs, though a surge in demand continues to overwhelm builders confronting an ever-widening supply deficit.

Heightened demand is also speeding along the sales process, with February homes selling in an average of 47 days, a rate 17 days faster than last year and over a month quicker than in early 2020. Homebuyers looking to snag a home during the spring rush will face inflated prices and fierce competition, but an increase in new listings could offer a silver lining in an otherwise frenzied market.

“Buyers can expect to see an improvement in the number of homes for sale this spring, a much-anticipated development for housing markets,” says [George] Ratiu. “A growing share of homeowners [are] ready to move with pandemic-delayed plans, indicating they plan to list their properties. As we gaze toward a post-pandemic spring in the months ahead, markets are likely to benefit from [a] higher supply of both existing as well new homes.”

Four metropolitan areas that saw an improvement in listings are Riverside, CA (+6.3%), Phoenix (+4.2%), Austin, TX (+1.5%), and Sacramento, CA (+0.3%), marking the first time since October 2021 that any of the 50 largest metros saw an increase in homes for sale. Metros include the main city and surrounding towns, suburbs, and smaller urban areas.

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