DENVER, CO — February saw an 8.4% increase in home sales compared to January, offering a glimpse of momentum as the spring housing season approaches. However, the growth was less pronounced than the month-to-month sales increases observed in recent years, with transactions down 2.6% year-over-year, according to a report by RE/MAX.
The Median Sales Price reached $423,000, rising 0.6% from January and 3.1% from February 2024. Inventory levels grew by 2.9% month-over-month, marking a 33.9% increase compared to the previous year. While new listings fell 3.0% from January’s sharp spike, they were slightly above levels seen a year ago, up 0.1%.
“As is typical heading into the spring market, home sales rose in February, and the market appears to be on the right trajectory to grow as we enter the spring selling season,” said Erik Carlson, CEO of RE/MAX Holdings, Inc. “It’s crucial to have abundant inventory for buyers, and we are seeing inventory trend in the right direction.”
Regional variations further highlighted market dynamics. San Diego experienced a 51.7% surge in new listings year-over-year, showcasing notable activity, while cities like Trenton, NJ, and Richmond, VA, recorded significant year-over-year drops in sales. On the other hand, Omaha, NE, posted an 11.7% increase in closed transactions, underscoring variability across markets.
According to Mike Safiedine, Broker/Owner of RE/MAX Connections, “We’ve seen a lot more activity in our market recently. Specifically, inventory has experienced an uptick over the past several months due to pent-up demand and lower interest rates.”
Other key metrics included the average Days on Market decreasing to 51, down five days from January but taking six days longer than February 2024. Buyers paid 99% of the asking price on average, up from 98% in January, reflecting a market edging closer to sellers’ expectations.
The national Months’ Supply of Inventory stood at 2.7, slightly lower than January’s 2.9 but significantly higher than the 1.9 recorded in February 2024. Regional disparities emerged here as well, with Seattle, WA, registering the lowest supply at 1.0 and Miami, FL, reporting the highest at 6.8.
“Real estate remains local, with varying trends across different regions,” Carlson noted. “Buyers and sellers should work with trusted advisors who understand their specific markets to navigate these fluctuations effectively.”
Looking forward, experts anticipate that growing inventory and steady demand could set the stage for a busier spring season. With historic trends pointing to March as a month of significant activity, the coming weeks will provide a clearer picture of 2025’s housing trajectory.
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