Realtor.com® February Housing Report: Early Indications Show a Promising Spring Real Estate Season
- 11.3% more new homes listed in February 2024 compared to last year.
- 14.8% increase in active listings from February 2023.
- Southern regions show significant inventory growth, with the $200,000 to $350,000 price range seeing a 20.6% increase.
- Mortgage rates fluctuate, impacting home sales, with a rise to 6.94% in early 2024.
- 14.6% of homes experienced price reductions, marking the first increase since May 2023.
- None.
Insights
The recent uptick in housing inventory, particularly in the $200,000 to $350,000 price range, is a significant development in the real estate market. This could potentially ease the affordability crisis that has plagued the market, especially for first-time homebuyers. The increase in inventory in the southern metros, notably in Texas cities such as San Antonio, Austin and Dallas, could indicate a regional shift in the housing market dynamics. This increase may be a result of various factors, including economic growth in these areas, a response to the demand for more affordable housing, or a change in homeowner sentiment. However, it's essential to consider the broader economic context, such as the fluctuating mortgage rates, which could affect buyer affordability and thus housing demand. The reported stabilization around 6.6% in January and early February, followed by a rise after the inflation report, suggests that the market is sensitive to macroeconomic indicators, which could influence both short-term and long-term housing market trends.
From a market analysis perspective, the increase in active listings and the growth of inventory in the affordable housing segment are critical metrics that could signal a shift from a seller's to a more balanced market. This shift may lead to more competitive pricing and could potentially slow down the rapid price appreciation seen in previous years. The 14.8% year-over-year growth in active listings and the 11.3% increase in new listings provide opportunities for businesses in the housing industry, such as construction companies, real estate agencies and mortgage lenders, to adjust their strategies accordingly. It's important to note the regional variations, with southern metros experiencing the most significant inventory growth, which could attract investors and businesses to these markets. Additionally, the increase in the share of active listings with price reductions implies that sellers are becoming more flexible, which could impact the negotiation power of homebuyers and real estate agents.
For investors and stakeholders in the real estate sector, including REITs (Real Estate Investment Trusts) and construction companies, the reported data could have various implications. The slight increase in median listing prices, coupled with a more considerable number of active listings, suggests that while the market is becoming more accessible, there is not a significant downward pressure on prices yet. This could mean a stable return on investment for current property holders, but also more opportunities for potential buyers, which could stimulate the housing market. The critical detail here is the balance between supply and demand, which can be disrupted by external economic factors such as inflation and changes in mortgage rates. A close monitoring of these trends is essential for making informed investment decisions in the real estate market.
Home sellers were more active this February, with
"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
February 2024 Housing Metrics – National
Metric | Change over Feb 2023 | Change over Feb 2019 |
Median listing price | + | +40.4 % |
Active listings | +14.8 % | -39.7 % |
New listings | +11.3 % | -17.2 % |
Median days on market | - 4 days (to 61 days) | -14 days |
Share of active listings with | +1.4 percentage points (to | -1.1 percentage points |
Affordable Home Inventory Grows
Homes in the
Southern Metros See the Most Inventory Growth
The inventory of homes actively for sale increased in 29 out of 50 of the largest metros compared to last year.
Mortgage Rates Remain in Flux, but Sellers are Ready to Move
As mortgage rates continue to shift, home sales have been sensitive to the fluctuations. While rates declined abruptly in November and December they steadied around
Additional details and full analysis of the market inventory levels, price fluctuations and stabilization, as well as days on market tallies can be found in the Realtor.com® February Monthly Housing Report.
February 2024 Housing Overview by Top 50 Largest Metros
Metro Area | Median Listing Price | Median Listing Price YoY | Median Listing Price per Sq. Ft. YoY | Active Listing Count YoY | New Listing Count YoY | Median Days on Market | Median Days on Market Y-Y (Days) | Price Reduced Share | Price Reduced Share Y-Y (Percentage Points) |
2.3 % | 4.1 % | 10.4 % | 15.7 % | 43 | -8 | 15.4 % | 0.5 pp | ||
2.1 % | 3.2 % | 8.1 % | 13.9 % | 60 | -10 | 20.8 % | -5.3 pp | ||
1.9 % | 4.2 % | 2.4 % | 2.5 % | 44 | -5 | 11.4 % | 0.1 pp | ||
5.7 % | 5.6 % | 24.2 % | 14.9 % | 65 | 2 | 13.2 % | -0.1 pp | ||
6.9 % | 10.3 % | -3.3 % | 5.9 % | 33 | -5 | 7.7 % | -2.1 pp | ||
10.4 % | 13.6 % | -4.5 % | -0.4 % | 67 | 5 | 5.3 % | -0.2 pp | ||
0.7 % | 5.9 % | 4.7 % | 13.1 % | 45 | -10 | 14.5 % | 0.6 pp | ||
6.7 % | 6.8 % | -13.4 % | 0.5 % | 40 | -4 | 8.9 % | -0.8 pp | ||
-6.4 % | 4.3 % | 26.2 % | 10.3 % | 39 | -10 | 10.9 % | 1.2 pp | ||
6.5 % | 7.9 % | -5.7 % | 1.2 % | 50 | -3 | 10.8 % | -0.9 pp | ||
4.7 % | 5.4 % | 22.1 % | 5.2 % | 38 | -2 | 15.8 % | 3.4 pp | ||
0.0 % | 1.6 % | 25.4 % | 20.0 % | 48 | -11 | 19.2 % | 2.8 pp | ||
-3.6 % | 6.2 % | 30.0 % | 17.6 % | 35 | -8 | 14.8 % | 1.3 pp | ||
0.0 % | 2.3 % | -4.8 % | 2.8 % | 46 | -9 | 11.3 % | -2.9 pp | ||
0.9 % | 5.3 % | -2.7 % | -6.3 % | 41 | 7 | 5.8 % | 0.7 pp | ||
0.4 % | 1.8 % | 16.2 % | 16.1 % | 48 | -6 | 16.8 % | 1.1 pp | ||
5.5 % | 7.2 % | 12.4 % | 2.8 % | 59 | 0 | 16.0 % | 0.9 pp | ||
5.2 % | 5.6 % | 22.6 % | 21.6 % | 51 | -13 | 20.8 % | 1.1 pp | ||
-4.9 % | -2.4 % | 1.7 % | 20.0 % | 73 | -8 | 10.8 % | 2 pp | ||
4.4 % | 5.6 % | -39.3 % | -2.9 % | 40 | -25 | 13.4 % | -8.6 pp | ||
16.8 % | 9.4 % | -4.2 % | 6.3 % | 40 | -12 | 8.9 % | -0.9 pp | ||
4.1 % | 3.1 % | 12.3 % | 5.3 % | 45 | 1 | 14.7 % | 1.8 pp | ||
0.4 % | 2.7 % | 35.5 % | 11.5 % | 68 | 1 | 18.2 % | 3 pp | ||
-8.2 % | -1.3 % | 37.4 % | 20.7 % | 62 | -5 | 19.5 % | 5 pp | ||
1.2 % | 4.4 % | -2.0 % | -19.1 % | 37 | 1 | 10.1 % | 0.3 pp | ||
-0.1 % | 0.2 % | 16.4 % | 37.4 % | 37 | -11 | 8.5 % | 0.9 pp | ||
8.2 % | 7.4 % | -2.8 % | 10.3 % | 38 | 0 | 17.3 % | -1.8 pp | ||
0.1 % | 0.1 % | 29.3 % | -1.7 % | 83 | 14 | 16.3 % | 0.9 pp | ||
10.2 % | 16.6 % | -9.9 % | -3.1 % | 69 | -6 | 6.6 % | -0.7 pp | ||
-7.4 % | -1.5 % | 19.8 % | 14.0 % | 55 | 3 | 18.1 % | 3.1 pp | ||
0.0 % | 2.6 % | 38.5 % | 11.1 % | 64 | 0 | 19.7 % | 3 pp | ||
5.4 % | 6.3 % | -5.8 % | 1.0 % | 59 | -4 | 11.0 % | -0.4 pp | ||
10.9 % | 4.6 % | -4.4 % | 6.9 % | 45 | -16 | 25.1 % | -0.1 pp | ||
16.2 % | 12.0 % | 6.1 % | 12.5 % | 75 | -14 | 14.7 % | 1.9 pp | ||
-1.2 % | 3.5 % | 21.1 % | 8.9 % | 55 | 2 | 19.1 % | 8.8 pp | ||
0.4 % | 0.4 % | -8.1 % | 2.3 % | 38 | -7 | 6.8 % | -1 pp | ||
-2.2 % | 5.7 % | -6.5 % | 18.0 % | 44 | -22 | 12.1 % | -1.5 pp | ||
14.3 % | 7.7 % | 11.5 % | 8.2 % | 48 | -3 | 8.9 % | 0.8 pp | ||
6.3 % | 7.5 % | -3.6 % | 7.0 % | 51 | -15 | 12.9 % | -1.1 pp | ||
7.5 % | 8.3 % | -5.6 % | 3.8 % | 24 | -4 | 8.7 % | 1.3 pp | ||
4.4 % | 4.6 % | -7.2 % | 6.5 % | 39 | -13 | 10.4 % | -1.8 pp | ||
-1.5 % | -1.3 % | 26.6 % | 11.0 % | 68 | 1 | 21.2 % | 2.9 pp | ||
6.9 % | 11.4 % | 5.8 % | 8.2 % | 33 | -5 | 10.6 % | 0.5 pp | ||
-1.3 % | -0.6 % | -2.0 % | 6.0 % | 29 | -4 | 7.5 % | -1 pp | ||
-2.3 % | -2.7 % | -12.8 % | 16.6 % | 23 | -7 | 5.0 % | -3.4 pp | ||
2.0 % | 4.1 % | 5.7 % | 41.7 % | 32 | -11 | 7.3 % | -3 pp | ||
5.8 % | 4.8 % | 12.2 % | 14.1 % | 48 | -16 | 10.5 % | 0.8 pp | ||
3.9 % | 5.6 % | 36.3 % | 25.3 % | 57 | -2 | 25.5 % | 4 pp | ||
3.5 % | 6.1 % | 9.3 % | 7.2 % | 36 | -2 | 15.1 % | 2.8 pp | ||
2.5 % | 5.7 % | -3.5 % | 2.3 % | 36 | -4 | 8.5 % | -0.5 pp |
Methodology
Realtor.com® housing data as of February 2024. Listings include the active inventory of existing single-family homes and condos/townhomes/rowhomes/co-ops for the given level of geography on Realtor.com®; new construction is excluded unless listed via an MLS that provides listing data to Realtor.com®. Realtor.com® data history goes back to July 2016. 50 largest
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
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SOURCE Realtor.com
FAQ
What was the percentage change in new listings in February 2024 compared to the previous year?
Which price range saw the highest growth in home inventory?
What was the percentage of homes with price reductions in February 2024?
Which regions experienced the most inventory growth in February 2024?
How did mortgage rates fluctuate in early 2024?
How did the share of homes with price reductions change from the previous year?
