Homesellers proved highly active this past month, as compared to a year ago, newly listed homes on the market were up 11.3%, and 14.8% more homes were actively listed for sale on a typical day in February, according to Realtor.com’s February Housing Report.
This marks the fourth straight month of annual inventory growth, Realtor.com reported.
“The first couple of months of 2024 have proven to be positive for inventory levels, as the number of homes actively for sale was at its highest level since 2020,” said Danielle Hale, chief economist of Realtor.com. “While the country is still well below pre-pandemic levels, the South is leading the charge, moving faster than other parts of the country, largely driving the increase in availability of homes priced between $200,000 and $350,000, a price category that saw the most year-over-year growth nationally.”
Affordable home inventory has also improved, and regarding homes listed at $200,000 to $350,000, the price range increased by 25.4% from 2023, the report stated. Those in search of affordable options may be in luck, as buying conditions look to continue easing up as the market heals from COVID, and more housing options become available for this spring’s homebuying season.
The inventory of homes actively for sale grew in 29 out of the 50 largest metropolitan areas countrywide compared to this time last year in 2023:
- Orlando 38.5%
- Miami 37.4%
- Tampa 36.3%
A majority of metros are still experiencing lower inventory levels from before the pandemic, but three metros in Texas saw higher levels last month compared to average 2017 through 2019 levels:
- San Antonio 26.6%
- Austin 10.8%
- Dallas 2.2%
The report noted that home sales also have been sensitive to mortgage rate fluctuations. While rates declined abruptly in November and December they steadied around 6.6% in January and early February, before climbing higher following a hot inflation report, most recently hitting 6.94%, the report stated. Additionally, the percentage of homes with price reductions increased from 13.2% in February of last year to 14.6% this year, marking the first time the share of price reductions had increased over the previous year since May of 2023, Realtor.com stated.
For the full report, click here.
