US home prices in February up 13% from previous year, sales down 10.3%; inventory levels down 5.6% year-over-year: Redfin
March 13, 2014
– Housing Market's Slow Start in 2014 Means Buyers and Sellers Must Adjust Expectations
Home sales continued to be sluggish in February, and decreasing affordability is holding back would-be buyers, according to Redfin (www.redfin.com), the technology-powered real estate brokerage. Slow sales have been largely attributed to low inventory for months, but many markets have now seen inventory rise while sales continue to fall. Several markets along the West Coast have seen sharp increases in inventory, yet home sales in the West fell 13.4 percent year over year, hitting their lowest point in five years in the first two months of 2014, while prices rose 19.1 percent year over year. Across 19 markets nationwide, prices rose 13 percent over last year, while home sales dropped by 10.3 percent.
"It's likely that many people are doing a double-take when they calculate mortgage payments on homes they are considering buying. Home sales in the coming months will be a test of buyers' tolerance when it comes to changing affordability, particularly for first-timers," said Redfin economist Ellen Haberle.
Full details on February's housing numbers are in Redfin's Real-Time Home Price Tracker and Demand Pulse reports released today. Key findings include:
West Coast Sales Hit Lowest Point in Five Years
Homebuyers Hesitate in February; Lower Home Sales Expected in March
Here are some tips for buyers and sellers from Redfin agents across the country:
For more information and advice on what buyers and sellers should consider as the real estate season heats up, please visit www.redfin.com and reach out to a Redfin agent in your city.
About the Real-Time Home Price Tracker Redfin's monthly report on home prices, inventory levels and sales volume is an up-to-date, accurate portrait of the U.S. real estate market, published before other market reports. As a broker with access to dozens of Multiple Listing Services (MLSs) used by real estate agents to list properties and record sales, Redfin gets data within minutes of a sale, pending sale or listing activation, well before any government, media or analytics organization. Full data may be downloaded in a spreadsheet.
About the Real-Time Demand Pulse The Redfin Real-Time Demand Pulse is a monthly analysis of thousands of customers touring homes and signing offers across the United States. Redfin is the only major real estate broker storing data in one location about its agent tours and offers, enabling the company to project sales volume for the U.S. without waiting 30 to 45 days for sales to close, or an additional 15 to 30 days for them to be recorded as public record.
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Redfin (www.redfin.com) is a technology-powered real estate broker that represents people buying and selling homes. Founded and run by technologists, Redfin has a team of experienced, full-service real estate agents who are advocates, not sales-people, earning customer-satisfaction bonuses, not commissions. Redfin.com features all the broker-listed homes for sale, as well as for-sale-by-owner properties that don't pay brokers a commission. Redfin also offers online tools that make the entire process of buying or selling a home easier and more fun. The company serves 23 U.S. markets and has closed more than $13 billion in home sales. In 2012, Redfin was named one of The DIGITAL 100: World's Most Valuable Private Tech Companies by Business Insider.