February-March Market Trends

This data comes from my friends at Old Republic Title and Escrow and pertains only to the single family detached market (i.e. not condos, patio homes or townhomes).

In short, homes below $100,000 are moving very quickly, but they are so competitive that the low prices are skewing all of the data to obscure the fact that higher priced homes are actually moving upward.

February saw the highest sales volume in recorded history.

Market Headlines

• We see falling supply and improved demand, especially at the low end.
• Below $100,000 demand is now exceptionally strong.
• High activity at the bottom of the market is dragging the overall sales price average $/SF down
• This is especially true of the median sales price which is misleadingly low due to the sales mix.
• Sales prices are stabilizing, though the monthly median may still fall if the mix continues to favor the low end.
• Statistics suggest a very busy spring season especially for price ranges under $200,000.

Overview
The new trends that started in December continue to strengthen. Active listing counts are moving down while sales and pending sales increase rapidly. Sales volumes through ARMLS are at their highest level ever for February.

Average sales pricing reached a new low point in January and has moved sideways since, but there is now a confirmed and significant improvement in the overall market dynamics. The drop in average and (especially) median pricing is NOT across the board but is caused by an unusual spike in the volume of sales at the bottom end of the market.

This improved demand for the cheapest homes is a welcome, but we must remember that it makes the median price numbers look artificially bad.

For the first time for many months we can report a fall in supply at the low end, and above $100,000 supply has been falling for some time. In the mid and upper ranges we see strong evidence of sales price stability and inventory is in a slow decline even though demand is quite modest.