Realtor.com® Report: 2014 Home Buying Starts Strong

The polar vortex is proving to become no sweat for home buyers, good latest National Housing Trend Report from realtor.com®.

Despite severe the winter season conditions across the nation, the 2014 property season got off and away to a good start which has a year-over-year increase in inventory and sustained development in home values.

The median list price for January rose 8.3 percent when compared to the same time not too long ago, based on the realtor.com® data. The quantity of properties available was up 3.1 percent. As well as the median age of inventory was essentially unchanged, indicating a transition to some “less frenzied market” compared to January 2013.

The solid start “is definitely an encouraging sign of sellers’ interest, particularly given the adverse conditions due to the polar vortex,” said Errol Samuelson, president of realtor.com®. “We were treated to the tight-supply market of last fall carry the whole way into November — later than is typically expected — and this early rise in inventory is usually a welcome trend.”

Looking ahead, the nation's median existing home prices are projected to rise about 5 percent to six percent in 2014, in line with the National Association of REALTORS®, which cites job growth and large, pent-up demand as drivers of the market learn how to of rising mortgage rates.

The California, Detroit and Nevada markets continue to top the list of areas with all the largest year-over-year increases in median list prices, boasting increases of 20 % or maybe more.

Even so the polar vortex took a toll in most regions of the nation. Strong markets hit hard by cold months — such as Boston, Chicago and Detroit — saw up to 10 percent month-over-month declines in inventory. Once the winter season subsides, however, these markets may go through a strong recovery, realtor.com® analysts said.

National Perspective

Inventory increasing: With the national level, for-sale inventories at the moment are 3.1 percent more than we were holding a year ago, as well as the surge in inventory is spreading to more markets across the country. In January 2013, just eight markets out of your 146 registered increases in inventory. This January, 83 from the 143 markets tracked by realtor.com (58 percent) showed increases in inventory, year over year. Even though the next few months are going to be critical to look at, these trends suggest a more balanced housing industry entering the 2014 real estate season.

Price increases more widespread: Median list price rose a normal 8.3 % in January 2014 in comparison to the same time recently. In January 2014, 44 markets saw year-over-year list price increases of 10 percent or even more, compared to January 2013, when 24 markets registered double-digit increases in median list price. The volume of declining markets in terms of median list price dropped from 58 in January 2013 just to 13 in January 2014.

Days on market stabilizing: Median day of inventory remained steady in January 2014 than the same time recently, at 115 days. However, the quantity of markets showing year-over-year declines in inventory has dropped significantly, from 133 markets in January 2013 to 78 markets in January 2014. Meanwhile, 56 markets showed year-over-year increases in inventory in January 2014, when compared with just nine markets in January 2013.

Local Market Highlights

California, Detroit and Nevada markets carry on and dominate the list of areas experiencing and enjoying the largest year-over-year increases in median list prices, with increases of 20 % or higher.

Stepping into the spring months, you have to watch out for markets which has a possible resurgence, for example Denver, Boulder, Chicago and Corpus Christi, TX, where depressed inventories are accompanied with large year-over-year gains in median list prices. Sustained low inventories through these markets could to lead to demand-driven housing price increases that characterized California and a lot of the sand states in 2013.

Strong markets particularly worth noting as those worst hit by climate-driven troubles include Boston which has a 10.9 percent month-over-month inventory decline, Chicago using a 6.1 percent inventory drop, Denver with a striking 13.5 percent inventory decline, Detroit which has a 6.8 percent reduction, Ny that has a 9.5 percent decline, and Philadelphia with an 8.2 percent decline. These markets may experience notable inventory recovery after prohibitive weather conditions subside.

Realtor.com® regularly tracks real property data and develops monthly reports featuring the quantity of listings, median chronilogical age of inventory and median list price across the U.S. and specific markets, along with provides year-over-year and month-over-month changes. These reports would be the only ones pulled completely from the realtor.com® database, where 90 % of listings are updated every 15 minutes from more than 800 MLSs. We regularly review increase historical data so as to provide most accurate and comprehensive market information available. To learn more about Move, please go to www.move.com or one of their many online real-estate properties including realtor.com®.