The President and Ceo of RE/MAX Says, “the Dream of Homeownership is Still Top of Mind for Many Americans.”
With a national average of 35 days on the market, and a near 30% decrease in the number of homes for sale compared to February 2021, it’s no secret that homebuyer competition is fierce right now. According to the most recent RE/MAX National Housing Report, the current market conditions indicate another record spring selling season is on the horizon.
“With such high demand and low inventory, houses 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 spring selling season,” says Nick Bailey, RE/MAX President and CEO. “Buyers, feeling pinched by inflation, are snapping up new listings and racing to take advantage of near historically low rates before they go up. It’s clear the dream of homeownership is still top of mind for many Americans.”
RE/MAX analyzed the latest housing data to identify the U.S. metros with the biggest year-over-year decrease in the number of homes for sale. It’s looking like a particularly advantageous time for sellers in these areas.
Markets With the Biggest Year-Over-Year Decrease in Months' Supply of Inventory
1. Albuquerque, New Mexico
In Albuquerque, the Months Supply of Inventory for February 2022 was 0.5. A year prior, Months Supply of Inventory was 3.3. This metro area saw a nearly 85% drop in the number of homes for sale year-over-year.
2. Hartford, Connecticut
Hartford’s Months Supply of Inventory for February 2022 was 0.8. A year prior, Months Supply of Inventory was 2.6. This metro area saw a nearly 70% drop year-over-year in the number of homes for sale.
3. Miami, Florida
February’s 1.5 Months Supply of Inventory in Miami is in stark contrast to last year’s 4.8 for the same metric. What was once a metro with a seemingly balanced supply and demand ratio (a six months supply indicates a market balanced equally between buyers and sellers), Miami saw a nearly 70% drop in the number of homes for sale in February.
4. Providence, Rhode Island
In Providence, the Months Supply of Inventory in February 2022 was 1.0. A year prior, Months Supply of Inventory was 2.9. This metro area saw a 65% drop in the number of homes for sale year-over-year.
5. Dallas-Fort Worth, Texas
The Dallas-Fort Worth metro area had 0.7 Months Supply of Inventory in February 2022. In February 2021, Months Supply of Inventory was 1.4. This metro area saw a 50% drop year-over-year in the number of homes for sale.
Whether you’re looking to buy or sell in these five metros or any of the 110 countries and territories with a RE/MAX presence, RE/MAX agents are prepared to navigate any market on behalf of their clients. Here’s the need-to-know data in the latest RE/MAX National Housing Report:
1. Closings Dipped Ahead of Anticipated Spring Surge
Although February home sales dipped nearly 1% from January, RE/MAX anticipates a big month-over-month ramp-up in sales as soon as March, which is typically considered the start of the spring home-selling season. The markets with the biggest decrease in year-over-year sales percentage were Manchester, NH at -26.8%, Burlington, VT at -22.8%, and Albuquerque, NM at -18.9%. Leading the year-over-year sales percentage increase were Houston, TX at +20.9%, Boise, ID at +18.0%, and Tulsa, OK at +10.5%.
2. Home Prices Are Back on the Rise
Home prices across the report’s 51 metro areas started to move upward again after experiencing no such increase in January and four small monthly declines in the second half of 2021. February’s Median Sales Price of $345,000 – the highest in report history – was 3% higher than January’s and 17.3% above a year ago. No metro areas saw a year-over-year decrease in Median Sales Price. Thirty-three metro areas increased year-over-year by double-digit percentages, led by Billings, MT at +29.6%, Phoenix, AZ at +28.6%, and Tampa, FL at +28.3%.
3. The Number of Homes for Sale Continues to Dwindle
The number of homes for sale in February 2022 was down 6.8% from January 2022 and down 28.9% from February 2021. While the number of homes on the market remained at record lows, February’s month-over-month decline in inventory of 6.8% was the smallest such decrease in five months. The markets with the lowest Months Supply of Inventory were Denver, CO at 0.4, and a four-way tie between Albuquerque, NM, Charlotte, NC, Raleigh-Durham, NC, and Seattle, WA at 0.5.