DENVER, CO — The US housing market saw a notable surge in March with sales jumping by 21.6% compared to February, despite slightly lagging behind the same period last year, according to the RE/MAX National Housing Report for March 2024. This was complemented by a significant 20.9% spike in new listings, which helped to expand the inventory of homes for sale by a remarkable 7.7%.
Simultaneously, the year-on-year supply of houses for sale grew 24.2%, forming the perfect backdrop for the traditionally peak homebuying seasons of May and June. Amy Lessinger, RE/MAX® President, suggests that the surge in inventory will give buyers more choices and better prospects of finding a home that suits their needs. Although many parts of the country remain a seller’s market, the increased number of available listings is a promising step towards achieving a more balanced market.
The flurry of activity in Miami’s housing market in March, typically a hot time for real estate, mirrored the national trend, except homes sold slightly slower than usual, as reported by Anthony Askowitz, Broker/Owner of RE/MAX Advance Realty in Miami, FL. Despite the slowdown, the market was buoyed by new construction, which helped satisfy the requirements of new residents.
The national median sale price increased 1.5% from February, the third consecutive monthly rise, while marking a 5.1% increase year over year. The median sale price returned to $415,000, a level it last touched in September.
Interestingly, while the 21.6% rise in March sales was the highest monthly gain in the past year, it fell short of the 37.7% surge in March 2023 and the 33.2% rise in March 2022. Another point of note is that the March home sales ended 9.4% lower than last year across the 50 metro areas surveyed. This can be attributed, at least in part, to the Easter holiday weekend falling in March this year, unlike last year when it was in April.
Despite this downtick in annual comparisons, the months’ supply of inventory in March was up to 1.7, from 1.9 in February and 1.4 a year ago. Homes spending time on the market dropped by four days from February to average at 40 days – equivalent to March 2023. On average, sellers in March received 99% of their listing price, in line with February and the previous year’s trends.
Among the 50 metro areas surveyed in March 2024, the overall number of home sales rose 21.6% from February 2024 but fell 9.4% from March 2023. The markets displaying the largest decreases in year-over-year sales percentage were Dover, DE (-25.9%), Honolulu, HI (-16.5%), and Miami, FL (-16.3%). In contrast, the biggest increases were in Bozeman, MT (+10.7%), Burlington, VT (+10.2%), and Minneapolis, MN (+10.0%).
The average close-to-list price ratio in March was static at 99%. If this ratio is over 100%, the home was sold for more than the list price; if it is less than 100%, it sold for less. Homes in Miami, FL (94%) and Bozeman, MT (95%) were at the lower end of the spectrum, while San Francisco, CA (105%) and Hartford, CT (104%) were at the top.
Overall, with the typical peak homebuying season approaching, the impressive growth in inventory, along with substantial sales in March, could signify a significant developing trend in the housing market. It remains essential to monitor how these dynamics play out, as they will have far-reaching implications on homebuyers, sellers, and the economy at large.
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