Home prices are on the rise, average time spent on the market is refreshingly brief, and because of this, inventory is shrinking, according to a report from Redfin. Prices have increased 13% in February compared to the same month in 2012.
The increase in pricing doesn’t carry quite as dramatic a percentage as the year-over-year comparison, but it still represents a 2.4% increase over January.
Redfin’s Real-Time Home Price Tracker measures results in 19 US markets.
Almost a third of homes put on the market are being sold within two weeks, says Redfin. Meanwhile, inventory is down 32% year-over-year, while increasing a modest 1.1% since February.
15 of the 19 markets were locations where prices rose, led by Phoenix. Denver enjoyed the biggest increase in terms of transaction volume.
RBR-TVBR observation: This is good for two reasons. First, the willingness of a consumer to invest in what will be one of the biggest purchases of their life is a pure indicator of confidence. And secondly, it almost invariably sets off a wave of secondary spending as the new home buyer acquires furniture, appliances and other items, and makes modifications the structure itself.
This is another sign that the economy is staring to perk up.