The February 2021 domestic market showed a slowdown in sales, as compared to January. Although as compared to February of last year, sales were up by about 9%. And, most pundits agree, that the February 2021 domestic market home sales slowdown happened in large part due to the severe winter weather that impacted much of the US. In fact, this downtrend in existing home sales represents the first in 2 months. Also, it is less likely due to a recent increase in mortgage interest rates. Reportedly, most contracts for the month were signed weeks before the rate hike. As a result, we’ll have to wait and see if the increase has an impact on sales in March and the 2nd quarter.
February 2021 Domestic Market Home Sales and Pricing
All of the 4 U.S. domestic market sectors show a sales decline, except for the West. And in that sector, existing home sales were reportedly on the rise. Although, like the rest of the nation, its home pricing also stepped up. In fact, the state of pricing may leave many asking why? And, the answer may lie squarely in the low levels of home inventory coupled with high demand.
A spate of prompt home selling capped February 2021 domestic market home sales and pricing. And reportedly, about 74% of home that sold were on the market under 1 month. In fact, that’s the time from when the home is listed to when it goes into contract.
When it comes to forecasts for sales in the 2nd and 3rd quarter, most pundits are optimistic. And, they expect existing home sales in the domestic market to stay robust. In fact, they cite factors like more millennials in the domestic buyer pool. They also cite more buyers working remotely, with the freedom to move to other locations. As a result, many remote workers have the freedom to even seek homes in other states.