The median home-sale price jumped +16% y/y and for-sale inventory dropped -50% since 2020 in February 2022.
Surge in Median Home-Sale Price in February
According to a new Redfin report, the median home-sale price jumped +16% y/y to an all-time high of $363,975. February’s median home-sale price was +33% higher compared with the same time in 2020.
The median asking price for a home in February skyrocketed +15% y/y to a record-high of $390,488. For context, February’s median asking price of $390,488 exploded +27% since 2020.
CoreLogic corroborated with Redfin’s home price findings by reporting that home prices in February experienced their biggest jump in the history of the S&P CoreLogic Case-Shiller Index.
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Mortgage Interest Rates in February Lower than Expected
Redfin indicated that for the four-week ending March 3, 30-year mortgage rates dropped to 3.76% from 3.89% the prior week. This 3.76% rate is a year-over-year increase of 23% when the interest rate was 3.02% and an increase of +36% from the same time period in 2020 when the interest rate was 3.29%.
The war in Ukraine stifled expectations that interest rates would rise in February. According to Taylor Marr, Redfin Deputy Chief Economist, “The war in Ukraine has rattled the global economy, causing mortgage rates to fall after weeks of increases. The dip in mortgage rates should buoy homebuying demand temporarily, fueling continued price gains. But demand may drop off if the Federal Reserve raises interest rates again as expected.”
Redfin indicated that the monthly mortgage payment on a median asking-price home fell to $2,018 at the 3.76% mortgage rate.
(Federal Reserve Chairman Jerome Powell said last week that policymakers with the Fed will, in fact, raise interest rates one quarter of a percent at the Fed’s next meeting March 15-16.)
For-Sale Inventory Dropped to All-Time Low in February 2022
Redfin reported that the number of active for-sale listings dropped to an all-time low of 456,000, -1% m/m, in February 2022. This 456,000 is down -24% y/y and down -50% to half as many for-sale listings compared to February 2020.
The number of new listings were down -1% y/y and down -110% compared to the same time period in 2020
The National Association of REALTORS® (NAR) reported that existing home inventory in February represented a monthly sales pace of about 1.6 months, down from 1.7 months in December 2021 and down from 1.9 months in January 2022..
4-Week Rolling Average of Weekly Pending Home Sales
Pending home sales for the four-week period ending March 3 increased +2.6% y/y, according to Redfin.
Compared to the same four-week period pre-pandemic in 2020, pending home sales were up +31%.
Additional Data Points on Homebuying Activity in February
- 58% of homes that went under contract had an accepted offer within the first two weeks of being listed on the market
- 45% of homes that went under contract had an accepted offer within one week of coming onto the market
- Median DOM was 26 days
- 44% of homes sold above list price
- 6% of for-sale homes had price drops
- Mortgage purchase applications dropped -2% w/w
- Touring activity during first week of January through February 7 dropped -6%, according to Showing Time
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Thanks to Redfin, National Association of REALTORS®, CoreLogic, CNBC, Showing Time and Inman.