The US housing market is showing signs of recovery in terms of supply, with new listings and active listings reaching new highs, according to a report from Redfin, a technology-powered real estate brokerage. Despite an increase in home listings, high mortgage rates and elevated home prices continue to pose challenges for potential buyers.
New listings in February rose 3.8% month over month, marking the highest level since September 2022 and a 14.8% increase from the previous year. Active listings also saw a slight month-over-month uptick of 0.8%, reaching the highest level in a year, although they were virtually unchanged from a year earlier, showing a minimal 0.1% decline.
In states like Texas and Florida, where home construction has been robust, listings have seen the most significant increases. Florida, in particular, has seen a surge in condo listings, attributed to rising homeowners’ association and insurance fees.
David Palmer, a Redfin Premier real estate agent in Seattle, observed that sellers who were hesitant in 2023 are now entering the market as they adjust to higher mortgage rates. However, the current supply still falls short of meeting the accumulated demand from buyers.
The median US home sale price in February was $412,778, a 6.6% increase from the previous year, representing the most significant rise since September 2022. This price growth is attributed to the ongoing imbalance between supply and demand, with both new and active listings below pre-pandemic levels.
The report also noted that the average 30-year fixed mortgage rate rose to 6.78% last month, up from 6.64% in January. Home sales experienced a modest month-over-month increase of 0.5%, but a 3.5% decline year over year.
In metro-level analysis, new listings saw the largest increases in Austin, TX, and Dallas, while active listings grew fastest in several Florida cities. Conversely, median sale prices rose notably in Newark, NJ, Anaheim, CA, and Grand Rapids, MI, but declined in San Antonio and Memphis, TN.
Seattle stood out with 77.4% of homes going under contract within two weeks, the highest share among the metros analyzed by Redfin. Homes in Seattle also went under contract in a median of 11 days, far below the national median of 48 days.
