The average home price jumped 4.5% in February to $406,000. Prices remain well above last year?s with February posting a 10% year-over-year price gain. Prices are determined by a combination of inventory levels and buyer demand, both of which are volatile this time of year. Prices and inventory will both be important factors to watch as we begin to get closer to peak months for home sales.
A seasonally adjusted 36,573 homes sold in February, up 3.6% from last year and up 0.3% from January. February also likely suffered from sales being suppressed by severe winter weather, and we may see some pickup in home sales as weather patterns return to normal.
The seasonally adjusted number of new listings increased once again in February, leading the sales-to-new-listings ratio to tick down slightly to 52.1%. Inventory is a key factor in determining the rate of price growth and will be an important factor to watch in the coming year. If inventory continues to move in its current direction, the price growth may slow. With weather likely having an effect on buyer traffic, the overall market trend won?t become clear until weather normalizes for a full month, or we move into the warmer part of the year.
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