Realtor.com® Report: 2014 Real estate Starts Strong

The polar vortex is proving to get no sweat for home buyers, based on the latest National Housing Trend Report from realtor.com®.

Despite severe winter months conditions nationwide, the 2014 property season got to a good beginning having a year-over-year improvement in inventory and sustained development in home values.

The median list price for January rose 8.3 % in comparison to the same time last year, good realtor.com® data. The volume of properties on the market was up 3.1 percent. And also the median day of inventory was essentially unchanged, indicating a transition to a “less frenzied market” in comparison to January 2013.

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

Looking ahead, the nation's median existing home expense is projected to about 5 percent to percent in 2014, according to the Nar®, which cites job growth and enormous, pent-up demand as drivers in the market in light of rising mortgage rates.

The California, Detroit and Nevada markets keep top their email list of areas using the largest year-over-year increases in median list prices, boasting increases of 20 percent or maybe more.

Though the polar vortex took a toll using some elements of the united states. Strong markets hit hard by winter weather — including Boston, Chicago and Detroit — saw approximately 10 percent month-over-month declines in inventory. Once winter weather subsides, however, these markets can suffer a substantial recovery, realtor.com® analysts said.

National Perspective

Inventory increasing: At the national level, for-sale inventories are actually 3.1 percent greater than these were recently, and also the boost in inventory is spreading to more markets nationally. In January 2013, just eight markets from the 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. While next quarter or so will likely be critical to watch, these trends suggest an increasingly balanced housing market starting the 2014 real estate season.

Price increases more widespread: Median list price rose a normal 8.3 % in January 2014 compared to the same time not too long ago. In January 2014, 44 markets saw year-over-year list price increases of 10 percent or more, when compared with January 2013, when 24 markets registered double-digit increases in median list price. The amount of declining markets in terms of median list price dropped from 58 in January 2013 to simply 13 in January 2014.

Days on market stabilizing: Median age of inventory remained steady in January 2014 when compared to same time not too long ago, at 115 days. However, the number 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 continue to dominate their email list of areas experiencing and enjoying the largest year-over-year increases in median list prices, with increases of 20 % or even more.

Stepping into the spring months, you should watch out for markets that has a possible resurgence, such as Denver, Boulder, Chicago and Corpus Christi, TX, where depressed inventories happen to be accompanied with large year-over-year gains in median list prices. Sustained low inventories of these markets could to lead to demand-driven housing price increases that characterized California and the majority on 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 that has a 6.1 percent inventory drop, Denver using a striking 13.5 percent inventory decline, Detroit having a 6.8 percent reduction, New York that has a 9.5 percent decline, and Philadelphia by having an 8.2 percent decline. These markets may experience notable inventory recovery after prohibitive weather conditions subside.

Realtor.com® regularly tracks property data and develops monthly reports featuring the volume of listings, median ages of inventory and median list price throughout the U.S. and in specific markets, together with provides year-over-year and month-over-month changes. These reports include the only ones pulled completely from the realtor.com® database, where 90 % of listings are updated every a quarter-hour from over 800 MLSs. We regularly review and update historical data so as to provide most accurate and comprehensive market information available. To learn more about Move, check out www.move.com or one of their many online real estate investment properties including realtor.com®.