The February 2020 Monthly Housing Market Trends Report by Realtor.com was released recently, and all indications are that the buying season will be extremely competitive. The report did note that "it remains to be seen if new concerns about the spread of the Coronavirus domestically will dampen what is shaping up to be a competitive home-buying season."
The total number of homes available for sale decreased and continues to decline at an accelerating pace. In fact, according to the study, inventory dropped 15.3% year-over-year for February. That's a faster rate of decline than January's year-over-year numbers, which were at 13.6%. The figures translated into roughly 184,000 lost listings year-over-year for February nationally.
The report also indicated that homes are selling quicker, selling in around 80 days, which is three days quicker than last February.
The national median listing price was $310,000, up nearly 4% since February 2019.
As we discussed in our last Treasure Valley real estate market update, we observed similar things to what we see nationally. The median sale price for homes in the area rose again, year-over-year, to $361,350, and inventory continues to be tight. Ada and Canyon counties have less than two months of total supply when combining resale with new construction homes.
While the coronavirus is affecting global economies, the demand for housing continues to exist. We anticipate there being a slowdown in listings, inducing area supplies even lower. As we get beyond the current situation, we believe we'll see a rush of buyers to purchase existing homes. Additionally, there will still be a significant demand for resale properties, where potential sellers could capitalize on the frenzy. As you can imagine, homes that fall within the $200,000 to $400,000 price range are going to be the most in-demand, but there will no doubt be buyers for just about any reasonably priced home.