Here's the skinny on February home sales and inventories in my neck of the woods
So how did things look in February?
* Sales plunged 43.6% year-over-year to 623 from 1,105.
* Median prices were unchanged -- $285,000 last month vs. $285,000 a year earlier
* The real story is on the supply front. I've been saying for a few months that the winter decline in inventory was seasonal, NOT the start of a new trend. I've also been on the lookout for the "March of the Re-Listers" -- people who pulled their homes from the market for the holiday season giving it another try in early 2007.
That appears to be exactly what's happening. For-sale inventory climbed yet again to 23,713 in February. That's up 34.4% YOY, and equal to a whopping 38 months of supply at the current sales pace. On an absolute basis, the February count appears to be a fresh cycle high (the previous peak was 23,695 in 9/06).
Let's be realistic: Given the very large supply glut evident in these figures, we're going to see a lot of disappointed sellers this spring. You are simply not going to see a lasting rebound in home prices until home inventories are whittled down -- and there are currently more than three years' worth on the market. Plan accordingly.
Here are the complete stats if you’re interested.