Housing report

RE/MAX National Housing Report for February 2022

House prices rise 3%, closings drop 1% ahead of expected spring surge

DENVER, March 17, 2022 /PRNewswire/ — February home sales fell nearly 1% from January, potentially setting the stage for what is typically the largest month-over-month sales increase of the year , as March is generally considered the start of the spring home sales season. And while the number of homes on the market remained at record lows, February’s month-over-month drop in inventory of 6.8% was the smallest such drop in five months.

At the same time, home prices in the 51 metro areas in the report have started to rise again after seeing no such increases in January and four small monthly declines in the second half of 2021. February median selling price of $345,000 – the highest in the report’s history – was 3% higher than January and 17.3% higher than a year ago. Only three months in 2021 – March (4.5%), April (5.9%) and June (4.9%) – have seen prices rise at a higher rate.

Despite a 4.7% year-over-year decline, the slight 0.9% month-over-month sales decline in February contrasts sharply with January’s average increase of 4.4% to February over the past five years (2017-2021). Currently underway, March home sales typically produce the largest monthly increase in closings each year. From 2015 to 2019, sales increased an average of 35% month-over-month from February to March, while the second average increase month-over-month was only 14% from April to May.

Inventories fell 6.8% from January to February after double-digit declines in the previous four months and were down 28.9% from February 2021. Inventory supply months fell to 1 .2, compared to 1.3 in January and 1.8 a year ago.

Homes spent an average of 35 days on the market in February – one more than in January, but eight less than a year ago.

“With such high demand and such low inventory, homes are flying off the shelves right now – even at prices that have reached new highs. Having more listings on the market would be good for everyone, but the stage is set for another active sales season in the spring, mentioned Nick Bailey, Chairman and CEO. “Buyers, feeling pinched by inflation, are buying new listings and rushing to take advantage of near-historic low rates before they rise. Clearly the dream of home ownership is still a concern major for many Americans.”

Highlights and local markets leading various metrics for February include:

Closed deals
Of the 51 metropolitan areas studied in February 2022the overall average number of home sales is down 0.9% from January 2022and down 4.7% compared to February 2021. The markets with the largest year-over-year sales percentage decline were Manchester, NH at -26.8%, Burlington, Vermont at -22.8%, and Albuquerque, New Mexico at -18.9%. Leading the year-over-year sales percentage increase are Houston, TX at +20.9%, Boise, I.D. at +18.0%, and Tulsa, okay at +10.5%.

Closed trades:
5 markets with the largest year-over-year decline

Marlet

February 2022
Transactions

February 2021
Transactions

Year after year-
Year %
Change

Manchester, NH

230

314

-26.8%

Burlington, Vermont

115

149

-22.8%

Albuquerque, New Mexico

807

995

-18.9%

Boston, MA

1,987

2,396

-17.1%

Birmingham, AL

1,087

1,300

-16.4%

Median sale price – Median of the median prices of 51 metros
In February 2022the median of the median selling prices of the 51 metros was $345,000up 3.0% compared to January 2022and up 17.3% compared to February 2021. No metro area saw a year-over-year decline in median selling price. Thirty-three metropolitan areas grew year-over-year by double-digit percentages, led by Billing, MT at +29.6%, Phoenix, AZ at +28.6%, and Tampa, Florida at +28.3%.

Median Selling Price:
5 markets with the highest year-over-year increase

Marlet

February 2022
Median sales
Price

February 2021
Median sales
Price

Year after year-
Year %
Change

Billing, MT

$350,000

$270,000

+29.6%

Phoenix, AZ

$450,000

$350,000

+28.6%

Tampa, Florida

$346,350

$270,000

+28.3%

Las Vegas, Nevada

$420,000

$330,000

+27.3%

Salt Lake City, UT

$516,759

$410,000

+26.0%

Days on Market – Average of 51 metropolitan areas
The average number of days on the market for homes sold in February 2022 was 35, one day older than the average in January 2022and down eight days from the average in February 2021. Metropolitan areas with the lowest market days were Nashville, TN at 14, Seattle, WA at 17, and a two-way equality between Omaha, NE and Salt Lake City, UT to 18. The highest Days on Market averages were Des Moines, Iowa at 98, Miami, Florida at age 79, and New York, NY to 77. Days on Market is the number of days between when a home is first listed in an MLS and when a sales contract is signed.

Days on the market:
5 markets with the largest year-over-year decline

Marlet

February 2022
days on
Marlet

February 2021
days on
Marlet

Year after year-
Year %
Change

Las Vegas, Nevada

23

39

-40.2%

Burlington, Vermont

30

50

-40.1%

Orlando, Florida

32

53

-39.6%

Raleigh-Durham, North Carolina

25

40

-37.5%

Tampa, Florida

27

43

-37.2%

Months of inventory supply – Average of 51 metropolitan areas
The number of houses for sale in February 2022 was down 6.8% from January 2022 and down 28.9% compared to February 2021. Based on home sales rate in February 2022months of inventory supply decreased to 1.2 from 1.3 in January 2022and decreased from 1.8 in February 2021. A six-month supply indicates a balanced market between buyers and sellers. In February 2022, of the 51 metro areas surveyed, no metro area reported a monthly supply of six months or more, which is generally considered a buyer’s market. The markets with the lowest months of inventory supply were Denver, CO at 0.4, and a tie at four between Albuquerque, New Mexico, Charlotte, North Carolina, Raleigh-Durham, North Carolinaand Seattle, WA at 0.5.

Inventory Supply Months:
5 markets with the largest year-over-year decline

Marlet

February 2022
Months of supply
inventory

February 2021
Months of supply
inventory

Year after year-
Year %
Change

Albuquerque, New Mexico

0.5

3.3

-84.8%

Hartford, Connecticut

0.8

2.6

-69.2%

Miami, Florida

1.5

4.8

-68.8%

Providence, RI

1.0

2.9

-65.5%

Dallas/Fort Worth, TX

0.7

1.4

-50.0%

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The description
The RE/MAX National Housing Report is distributed each month on or around the 15and. The first report was distributed in August 2008. The report is based on MLS data in approximately 51 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the nation’s largest metropolitan areas are represented, and an attempt is made to include at least one metro from each state. Definitions of metropolitan areas include specific counties established by the US Government’s Office of Management and Budget, with some exceptions.

Definitions
Transactions is the total number of residential transactions concluded during the given month. The monthly inventory supply is the total number of residential properties listed for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pending) during the month. When “pending” data is not available, this calculation is performed using closed transactions. Days on Market is the number of days between when a property is listed and when the property goes under contract for all residential properties sold during the month. The median selling price is the median of the median selling prices in each of the metropolitan areas included in the survey.

MLS data is provided by contracted data aggregators, RE/MAX brokers and regional offices. Although MLS data is believed to be accurate, it cannot be guaranteed. MLS data is constantly updated, making any analysis a snapshot at any given time. Each month, the RE/MAX National Housing Report recalculates data from the previous period to ensure accuracy over time. All raw data remains the intellectual property of each local MLS organization.

SOURCE RE/MAX, LLC