Promising news for home buyers
The double-edged sword of low affordability and low inventory has made house hunting harder in recent times.
While the supply of for-sale homes still lags pre-pandemic totals, signals point to a recovery underway. The count of active listings spiked 27.5% annually in February, according to Realtor.com.
Some of the largest inventory gains came in high-demand cities and the share of listings with price reductions remains elevated.
Find your lowest rate. Start hereActive listings make huge leap in February
In a promising sign for prospective borrowers, active home listings surged 27.5% annually in February, according to Realtor.com’s Housing Report.
A typical day during the month yielded 847,825 for-sale listings and marked the 16th straight month — and 30th of the past 36 — with year-over-year inventory growth. The listing count rose above January’s 829,376 while overshadowing February 2024’s 664,716. Though active listings are trending upwards, they still lag “normal” prepandemic levels.
“While rates remain elevated, we are beginning to see green shoots in the market as sellers grow tired of waiting for significant changes in interest and mortgage rates,” said Danielle Hale, chief economist, Realtor.com. “If these trends continue for the next few months, we could see a market that is entering into more balanced terrain, with rising inventory and a potential future slowdown in price growth. While the market does not look like it did before the pandemic, we are moving away from the ultrahigh demand, low inventory period we saw in 2021 and 2022.”
Regionally, the West saw active listings grow most at a 37.4% annual rate. Then came the South at 29.9%, Midwest at 18.7% and Northeast at 9.2%.
Among the 50 largest U.S. housing markets, Denver led the way with a 64.4% year-over-year gain in active listing count. Jumps of 461.3% in San Diego, 60.8% in Las Vegas, 47.4% in Tucson, Ariz., 47.2% in Riverside, Calif., rounded out the top five.
Time to make a move? Let us find the right mortgage for youThe table below shows the metro areas with the 15 largest rises in listing count in February:
| Metro Area | Active Listing Count YoY | Median Listing Price | Median Listing Price YoY | Median Listing Price vs February 2019 | Median Days on Market | Price– Reduced Share |
| Denver | 64.4% | $572,500 | -6.1% | 14.6% | 44 | 22.9% |
| San Diego | 61.3% | $949,995 | -4.7% | 42.0% | 34 | 14.6% |
| Las Vegas | 60.8% | $469,974 | 1.1% | 51.2% | 47 | 19.2% |
| Tucson, Ariz. | 47.4% | $396,200 | -1.0% | 38.7% | 52 | 24.1% |
| Riverside, Calif. | 47.2% | $599,450 | 0.7% | 49.9% | 60 | 17.0% |
| San Jose, Calif. | 46.1% | $1,304,500 | -4.6% | 19.1% | 22 | 7.3% |
| Charlotte, N.C. | 45.7% | $419,475 | 4.9% | 27.2% | 56 | 20.9% |
| Sacramento, Calif. | 45.4% | $619,000 | -2.2% | 34.0% | 39 | 13.4% |
| Phoenix | 45.3% | $515,000 | -4.9% | 47.2% | 56 | 30.2% |
| Orlando, Fla. | 43.8% | $418,950 | -3.7% | 39.0% | 74 | 23.3% |
| Los Angeles | 43.0% | $1,119,000 | -1.6% | 49.3% | 39 | 11.8% |
| Raleigh, N.C. | 41.6% | $435,962 | -1.5% | 22.9% | 53 | 15.7% |
| Washington, D.C. | 41.0% | $579,995 | -3.3% | 28.9% | 34 | 10.8% |
| Atlanta | 40.9% | $398,894 | -2.7% | 24.8% | 58 | 20.5% |
| Seattle | 40.8% | $737,400 | -3.6% | 24.2% | 35 | 11.2% |
On the other end of the spectrum, New York gained the least inventory, inching up 1% from February 2024. After the Big Apple, active listings rose 4.4% in Hartford, Conn., 6.2% in Detroit, 8.8% in Minneapolis, and 9% in Chicago.
The table below shows the full bottom 15:
| Metro Area | Active Listing Count YoY | Median Listing Price | Median Listing Price YoY | Median Listing Price vs February 2019 | Median Days on Market | Price– Reduced Share |
| New York | 1.0% | $766,889 | 1.9% | 39.6% | 68 | 5.9% |
| Hartford, Conn. | 4.4% | $433,700 | 6.6% | 48.4% | 38 | 6.0% |
| Detroit | 6.2% | $239,900 | 4.6% | 9.1% | 52 | 11.1% |
| Minneapolis | 8.8% | $434,950 | 0.1% | 11.6% | 41 | 9.8% |
| Chicago | 9.0% | $349,450 | -2.9% | 11.9% | 43 | 10.4% |
| Milwaukee | 11.1% | $374,950 | 6.4% | 43.2% | 36 | 11.3% |
| Kansas City, Mo. | 11.4% | $379,450 | -9.9% | 21.4% | 75 | 10.7% |
| Boston | 11.7% | $839,450 | -1.8% | 52.8% | 33 | 9.5% |
| Cleveland | 11.7% | $241,725 | 14.0% | 34.3% | 61 | 13.0% |
| Pittsburgh | 13.7% | $229,000 | 0.9% | 37.1% | 86 | 14.2% |
| St. Louis | 13.8% | $276,799 | -3.7% | 31.8% | 53 | 12.7% |
| Philadelphia | 14.6% | $350,000 | 3.0% | 40.0% | 52 | 11.8% |
| San Antonio | 15.1% | $327,000 | -2.4% | 14.4% | 76 | 24.7% |
| Richmond, Va. | 16.9% | $429,653 | -4.2% | 34.5% | 49 | 10.5% |
| Birmingham, Ala. | 17.2% | $285,000 | 0.3% | 20.3% | 71 | 15.0% |
Additionally, the median time listings spent on the market reached to 66 days, down from 73 days in January and up from 61 days the year prior. The share of listings with price reductions hit 16.8%, up monthly from 15.6% and annually from 14.6%. The median listing price hit $412,000 in February, rising 2.9% from January’s $400,500 while decreasing 0.8% from February 2024’s $415,500. It also marks a 39.8% five-year growth rate from February 2019’s $294,800.
The bottom line for home buyers
With affordability sidelining many would-be home buyers, more for-sale options could help lower prices for house hunters in 2025.
If you’re searching to purchase a home, it’s helpful to get your ducks in a row. Plus, you could save big money by learning strategies for mortgage rate negotiation and seeing what down payment and closing cost assistance you may qualify for.
Reach out to a local mortgage professional if you’re ready to begin your path to homeownership.
