The market took a step back in February with sales decreasing 9% compared to last February and Pendings decreasing 12%. Inventory has increased 18% over the last twelve months but, because of the pace of sales over that period of time, we have only 3 months of inventory.
Distressed property sales amounted to only 13% of total sales this February compared to 24% last February. It is interesting to note that the decrease in total sales from last February to this February is exactly the same amount as the decrease in sales of distressed properties.
New construction sales decreased 12% from February 2013 to February 2014 and the average price of a new home increased 18% to $306,780. New home prices over the last twelve months were 32% higher than resale homes.
Normally a drop in same month unit sales could signal a turn in the market, but the decreased availability of the lower-priced distressed properties may simply signal a continued return to a more normal market.
One thing is clear: the market needs more resale listings and the listing season is upon us.