Here are a few key insights to take away from the February market.
In this month’s real estate update, we’ll go over the data shaping the February market and highlight key trends and shifts that buyers and sellers should be aware of.
1. Active listings surge. The most notable change this February is the uptick in active listings, reaching 19,890 compared to last year’s 17,937. This represents a significant 10.8% increase in available inventory.
“The market continues to favor sellers in most cities.”
2. Pending listings and homes sold show a decline. Contrastingly, pending listings have seen a 4.6% decrease, standing at 8,693 this year compared to 9,109 last year. Similarly, homes sold this month witnessed an 8.5% dip, dropping from 5,706 in the previous year to 5,221.
3. Rise in the supply of inventory. The supply of inventory has experienced a notable shift, jumping from 2.6 months last year to 3.2 months this year. This marks a substantial 23% increase in the monthly supply of inventory.
The current market dynamics indicate a surge in homes coming onto the market, fueled by mortgage rates hovering around 7%. Many individuals who have patiently observed the market are now making their move due to changing circumstances in their lives. While inventory is on the rise, it has not yet reached a point of oversupply. Typically, an oversupply is defined as exceeding six months’ worth of inventory, leading to more aggressive decreases in prices. With the current supply standing at 3.2 months, we are not at a high level yet.
Despite the increased inventory, the market continues to favor sellers in most cities. However, it’s important to note that the situation can vary based on location and price range. If you’re curious about the market dynamics in the specific price range you’re interested in or want to know whether it’s a buyer’s or seller’s market, feel free to reach out to us at 602-738-9943. We’re here to provide you with personalized information to guide your real estate decisions.
