By David Arbit on Friday, March 16th, 2018
The big story of 2017 was threefold: the median sales price reached an all-time high; closed sales reached a 12-year high; and inventory levels reached a 15-year low. Sales nearly broke their all-time record, but fell just short of their all-time 2004 high. In February 2018, new listings posted a year-over-year decline for a fourth consecutive month. Mostly due to the supply shortage, closed sales were lower compared to the year prior for a third consecutive month. For-sale housing supply (inventory) was 23.0 percent lower than February 2017. This shortage has created a competitive environment where multiple offers have become commonplace. Sellers are receiving strong offers close to their original list price in record time, which can sometimes frustrate home buyers. New construction closed sales rose 15.7 percent compared to last February. Although single-family homes made up about 73.0 percent of all sales, condos and townhomes showed the strongest increase in closed sales. Similarly, previously-owned homes made up about 88.7 percent of sales but new construction showed a much stronger increase in pending and closed purchase activity.
February 2018 by the Numbers
- Sellers listed 5,072 properties on the market, an 8.0 percent decrease from February 2017
- Buyers closed on 2,635 homes, a 6.0 percent decrease from 2017
- Inventory levels for February fell 23.0 percent compared to 2017 to 7,537 units, near a 15-year low
- Months Supply of Inventory was down 21.1 percent to 1.5 months, also near a 15-year low
- The Median Sales Price rose 12.7 percent to $250,000, a record high for February
- Cumulative Days on Market declined 15.9 percent to 69 days, on average (median of 38)—a 12-year low
- Changes in sales activity varied by market segment
- Single-family sales fell 8.3 percent; condo sales rose 1.9 percent; townhome sales rose 6.3 percent
- Traditional sales fell 1.3 percent; foreclosure sales fell 43.3 percent; short sales fell 39.6 percent
- Previously-owned sales fell 6.3 percent; new construction sales rose 15.7 percent