SAN FRANCISCO, CA — The U.S. housing market, typically poised for a spring surge, is showing few signs of blossoming activity, according to the latest report by national brokerage HouseCanary, Inc. The February Market Pulse Report reveals that net new listings in February 2024 plunged by 15.3% compared to the same month last year.
Despite an 11.7% increase in inventory from last year, overall levels remain low, intensifying pressure on the market. The drop in net new listings and contract volume suggests a sluggish start to the traditionally busy spring season.
Jeremy Sicklick, Co-Founder and CEO of HouseCanary, commented on the trend. He noted that while there’s been a slight uptick from the seasonal lows of January, the market continues to face significant pressures. “The Federal Reserve has all but confirmed that rates will continue to hover around the 7% mark, continuing to keep many potential buyers wary of a purchase and potential sellers unwilling to part with their current rate,” said Sicklick.
Despite low inventory, home prices have generally continued to increase. Listed and closed prices both saw positive growth compared to February 2023. However, Sicklick expects a subdued spring buying season, with current trends likely to persist until rates or home prices fall. Given recent Fed decisions and low inventory, he warns it might be some time before either of those trends materialize.
In the past 52 weeks, 2,502,785 net new listings were placed on the market, and 2,570,447 properties went under contract, representing decreases of 15.3% and 11.7% respectively. For February 2024 alone, 189,394 net new listings hit the market, and 243,305 properties went under contract, down 10.6% and 2.2%, respectively, compared to February 2023.
The decline in net new listings was driven by a 7.6% decrease in new listing volume and a 4.4% increase in removals compared to February 2023. Median days on the market rose slightly by 2.3% from 44 to 45 days.
The median price of all single-family listings in the U.S. stood at $430,557, while the median closed price was $405,992. Year-over-year, the median price of all single-family listings rose 3.3%, and the median price of closed listings soared 8.3%. Month-over-month, the median price of single-family listings inched up 0.2%, and the median price of closed listings jumped 3.7%.
The HouseCanary report paints a picture of a housing market hampered by high interest rates and low inventory, with potential buyers remaining cautious and sellers reluctant to let go of their properties. This situation could result in a quieter-than-usual spring season for the real estate industry.
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