The busy spring season got off to another strong start this year. March home sales jumped 32.2% over February while posting a report record Median Sales Price of $360,000, according to RE/MAX’s March National Housing Report. In Metro Phoenix, the median sales price for a home jumped from $360,000 in March of 2021 to $462,500 in March of 2022 — a 28.5% home price increase year over year, the third-highest increase in the nation.
Here is a quick snapshot of Phoenix’s housing data:
Closed transactions: 9,661 down year-over-year by 2.7%; up month-over-month by 26.5%
Median Sales Price: $462,500 up year-over-year by 28.5%; up month-over-month by 2.8%
Days on Market: 23 down year-over-year by 4.2%; down month-over-month by 14.8%
Months Supply of Inventory: .6 up year-over-year by 0%; down month-over-month by 25%
As buyers continued to far outnumber sellers, Months Supply of Inventory reached a record low of 1.0 across the report’s 51 metro areas. More than half of the market areas reported a supply of less than one month.
March’s significant month-over-month growth in sales of 32.2% was in line with an average increase of 33.5% from February to March over the past five years (2017-2021). Consistent with March being considered the start of the traditional peak spring home-selling season, March home sales typically produce the largest monthly increase in closings each year, in sharp contrast to the average increase of just 0.5% from March to April over the past five years.
The Median Sales Price for March was 4.7% higher than the previous report record of $344,000 set in February. Year over year, prices rose 16.7%.
The previous record low for Months Supply of Inventory was 1.2 months set last May. A year ago, Months Supply of Inventory was 1.3. The number of homes for sale was down 21.1% from March of 2021. Even so, the decline in active listings of 0.9% from February to March was the smallest in eight months.
Homes spent an average of 31 days on the market in March – four less than February and eight less than a year ago.
“The market remains very active right now, especially on the demand-heavy buy side,” said Nick Bailey, President and CEO. “You have buyers rushing to beat mortgage rate hikes as well as buyers ready to roll as soon as the right listing appears. Inventory remains the biggest concern for hopeful buyers, but with sellers watching homes get snapped up in record time, the idea of cashing in on their equity gain continues to have great appeal. If things heat up even more in the coming months, buyers may have more choices and purchasing power should additional sellers choose to join the action.”
Highlights and the local markets leading various metrics for March include:
Median Sales Price – Median of 51 metro median prices
In March 2022, the median of all 51 metro Median Sales Prices was $360,000, up 4.7% compared to February 2022, and up 16.7% from March 2021. No metro areas saw a year-over-year decrease in Median Sales Price. Thirty-five metro areas saw a home price increase year-over-year by double-digit percentages, led by Billings, MT at +31.2%, Tampa, FL at +29.1%, and Phoenix, AZ at +28.5%.
Days on Market – Average of 51 metro areas
The average Days on Market for homes sold in March 2022 was 31, down four days from the average in February 2022, and down eight days from the average in March 2021. The metro areas with the lowest Days on Market were Nashville, TN at 11, Seattle, WA at 12, and Omaha, NE at 13. The highest Days on Market averages were in Des Moines, IA at 96, New York, NY at 79, and Miami, FL at 76. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Of the 51 metro areas surveyed in March 2022, the overall average number of home sales is up 32.2% compared to February 2022, and down 6.5% compared to March 2021. The markets with the biggest decrease in year-over-year sales percentage were Anchorage, AK at -20.6%, Billings, MT at -18.9%, and Augusta, ME at -18.2%. Leading the year-over-year sales percentage increases were Wilmington/Dover, DE at +6.0%, Little Rock, AR at +4.1%, and Portland, OR at +1.7%.
Months Supply of Inventory – Average of 51 metro areas
The number of homes for sale in March 2022 was down 0.9% from February 2022 and down 21.1% from March 2021. Based on the rate of home sales in March 2022, the Months Supply of Inventory decreased to 1.0 compared to 1.3 in February 2022, and decreased compared to 1.3 in March 2021. A six months supply indicates a market balanced equally between buyers and sellers. In March 2022, of the 51 metro areas surveyed, zero metro areas reported a months supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory were Albuquerque, NM at 0.4, and a four-way tie between Charlotte, NC, Denver, CO, Raleigh-Durham, NC, and Seattle, WA at 0.5.