US home sales drop as inventory grows in February: report

National /
Mar.March 20, 2019 11:30 AM

Home sales declined in February (Credit: iStock)

Is it a buyer’s market yet?

Home sales declined in February as inventory grew in the U.S., according to a new report from Re/Max.

The 4.2 percent drop last month marked the seventh consecutive month of year-over-year declines. Inventory, meanwhile, grew 5.8 percent in February, the fifth consecutive month. Re/Max’s monthly survey covers 54 metro areas across the country.

“Trends of five months or more often indicate significant shifts, Re/Max CEO Adam Contos said in a release. “Year-over-year trends in declining sales and rising inventory have both reached that length now.”

Inventory in terms of months of supply grew as well, up to 3.4 months in February from 3.1 months in 2018.

Miami was among the five markets with more than six months of supply, at 7.6 months. A healthy market typically has six months of supply. Denver and San Francisco reported the fewest months of supply, with 1.4 and 1.6 months, respectively.

Homes spent roughly the same number of days on the market last month — 63 — according to the report. The cities with the fewest days on market were Omaha, Nebraska, at 34 and San Francisco at 37. Augusta, Maine, and Trenton, New Jersey, averaged 120 days and 113 days on the market before selling.

The median home sales price actually increased to $240,000, up 5.5 percent year over year. It rose in January as well. In February, the median sales price rose in Boise, Idaho, Cincinnati and Wilmington/Dover, Delaware, and it fell in markets that include Birmingham, Alabama, Hartford, Connecticut and Anchorage, Alaska.

The next few months will determine whether the shift in inventory and sales brings in a new wave of buyers, Contos said.

There have been other signs of an overall slowdown of the housing market.

A report released in December found that home flipping in the U.S. was down to its lowest levels in more than three years. The U.S. Commerce Department also reported that new home sales dropped 8.9 percent in October compared to September, marking an almost two-and-a-half-year low.


Related Articles

arrow_forward_ios
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley

Baptist, Belmont gain approval for luxury senior living in Coral Gables

Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)

Sunrise affordable senior housing facility sells for $30M

Sunrise affordable senior housing facility sells for $30M
Mark Zilbert

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
(Credit: iStock)

Home sales dropped big time in South Florida in April

Home sales dropped big time in South Florida in April
 Rendering of Father Marquess-Barry Apartments with Matt Rieger

HTG scores financing for senior affordable housing in Overtown

HTG scores financing for senior affordable housing in Overtown
Renderings of different versions of the project with Matt Rieger

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown
Pharrell Williams (Credit: Ethan Miller/Getty Images)

South Florida by the numbers: Bright spots in a challenging market

South Florida by the numbers: Bright spots in a challenging market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...