February 2022
The U.S. real estate market remains hot ahead of the spring selling season, with
existing home sales up 6.7% as of last measure, according to the National
Association of REALTORS®. Experts attribute the growth in sales to an uptick in
mortgage interest rates, as buyers rushed to lock down their home purchases
before rates move higher. Mortgage rates have increased almost a full percentage
point since December, with the average 30-year fixed-rate mortgage briefly
exceeding 4% in February, the highest level since May 2019.
New Listings were up 0.6 percent to 1,362. Pending Sales decreased 3.5 percent to
1,347. Inventory shrank 16.5 percent to 1,054 units.
Prices moved higher as Median Sales Price was up 19.2 percent to $250,000. Days
on Market decreased 23.1 percent to 30 days. Months Supply of Inventory was
down 20.0 percent to 0.8 months, indicating that demand increased relative to
supply.
Inventory was at an all-time low of 860,000 as February began, down 17% from a
year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief
Economist at the National Association of REALTORS®, much of the current housing
supply is concentrated at the upper end of the market, where inventory is
increasing, while homes priced at the lower end of the market are quickly
disappearing, leaving many first-time buyers behind. The shortage of homes is
boosting demand even further, and with bidding wars common in many markets, it’s
no surprise sales prices continue to soar.
Information courtesy of CMLS*