SANTA CLARA, CA — The spring housing market is set for an uptick in activity, with a 14.8% increase in homes actively for sale in February compared to the same period in 2023, marking four months of consecutive annual inventory growth, according to Realtor.com’s February housing report.
Danielle Hale, Chief Economist of Realtor.com®, commented on the promising start to 2024, noting that the number of homes actively for sale reached its highest level since 2020. Despite being below pre-pandemic levels, the South is moving at a faster pace than other regions, significantly contributing to the rise in availability of homes priced between $200,000 and $350,000 – a category that saw the largest year-over-year growth nationally.
Homes in the $200,000 to $350,000 bracket grew by 20.6% compared to last year, outpacing all other price categories. This surge presents favorable home-buying conditions for those looking for affordable options. Although the market is still some way off from pre-pandemic levels, prospective homebuyers can expect a wider range of choices this spring, especially in this price range.
Among the 50 largest metros, 29 reported an increase in the inventory of homes actively for sale compared to last year. Orlando (+38.5%), Miami (37.4%) and Tampa (36.3%) experienced the most significant inventory growth. Three metros, all in the South and notably in Texas – San Antonio (+26.6%), Austin (+10.8%), and Dallas (+2.2%) – reported higher inventory levels in February compared to typical 2017 to 2019 levels.
Mortgage rates remain unstable, impacting home sales. After a sudden drop in November and December, rates steadied around 6.6% in January and early February, before rising following a robust inflation report, most recently reaching 6.94%. The percentage of homes with price reductions rose from 13.2% last February to 14.6% this year, marking the first increase in price reductions year-over-year since May 2023. Newly listed homes were also up, 11.3% above last year’s levels, ending a 17-month streak of decline.
The Realtor.com® February Monthly Housing Report provides additional details and a thorough analysis of market inventory levels, price fluctuations and stabilization, and days on market tallies.
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