February home sale prices increased as new listings decreased in Washtenaw County
The U.S. real estate market remains hot ahead of the spring selling season, with existing national 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. In Washtenaw County, New Listings decreased 14.3 percent for Single Family homes and 30.6 percent for Townhouse/Condo homes. Pending Sales increased 28.5 percent for Single Family homes and 14.1 percent for Townhouse/Condo homes. Inventory decreased 57.3 percent for Single Family homes and 55.2 percent for Townhouse/Condo homes.
For Washtenaw County the Median Sales Price increased 17.8 percent to $383,000 for Single Family homes and 33.0 percent to $286,000 for Townhouse/Condo homes. Days on Market decreased 25.6 percent for Single Family homes and 44.3 percent for Townhouse/Condo homes. Months Supply of Inventory decreased 60.0 percent for Single Family homes and 63.0 percent for Townhouse/Condo homes. Inventory across the nation 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 firsttime 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.
Courtesy of the Ann Arbor Area Board of REALTORS