Online brokerage Redfin has an early read on home prices for February, and in the markets they cover they see a strengthening housing market.
Newly listed homes shot up by 11.5% over last year, the largest increase since October 2013.
Across the 50 major metro areas that Redfin tracks, the number of homes sold increased 3.2% year over year. The median sale price increased 5.4% from last year to $258,300.
In San Francisco, the median price of $979,750 was up 16.2% from last February, as inventory declined 7.3% and new listings fell 6.7%. At this rate, the median home price will surpass $1 million next month.
“In most parts of the country, there are more homes for sale, which means buyers can be choosier and less aggressive with their offers. In February, 16.4% of properties sold above asking price, down from 18.6% a year ago,” Redfin says. “The median difference in sale-to-list price was a negative 3.5% compared with negative 3 percent a year ago. And the share of Redfin offers that encountered competition also dropped, by 1.6 percentage points to 58.2%. While that may sound like a small drop, it’s the 18th consecutive month that bidding wars have eased year over year.”