Some Florida cities are seeing a jump in active listings

In Florida and around the country, the supply of homes is recovering as sellers get used to high mortgage rates and the lock-in effect wears off, Redfin found.

MIAMI - Active listings, or the total supply of homes for sale, in Cape Coral, North Port and Fort Lauderdale saw the nation's largest jump in February, real estate brokerage Redfin reported. Across the country, active listings climbed 0.8% compared to a month earlier on a seasonally adjusted basis and changed slightly (-0.1%) compared to a year earlier - the smallest annual decrease in months.

Nationally, new listings jumped 3.8% month-over-month on a seasonally adjusted basis in February to the highest level since September 2022. They rose 14.8% year-over-year, the biggest annual gain since May 2021. In Florida, condo listings were the drivers. Power is contributing to a surge in supply amid an increase in HOA fees and insurance premiums.

"The housing market is not like it was two years ago during the frenzy of buying housing during the pandemic, but it is better than last year. It's coming back," said David Palmer, a Redfin agent in Seattle. "Sellers who were on the fence in 2023 are now appearing. Now they are more used to high rates. There are still not enough listings to satisfy the pent-up buyer demand, but it is getting better."

Nationwide, housing supply is on the rise because the "lock-in effect" is fading; Ultimately, homeowners holding on to their ultra-low mortgage rates simply need to move.

"February was a mixed bag for the housing market and the economy," said Redfin head of research Chen Zhao. "Housing supply is finally starting to recover significantly, which is great news for buyers who have been competing for months for a tiny pool of homes for sale. Still, many house hunters hesitate to pull the trigger because mortgage rates and house prices remain high."

Applications to purchase mortgages fell in February as mortgage rates rebounded after falling in December. The average 30-year fixed mortgage rate was 6.78% in February, compared to 6.64% in January.

At the same time, prices continue to rise because, despite the recent uptick in listings, there still isn't enough supply to meet demand, according to Redfin. Both new and active listings remain well below pre-pandemic levels in February.

“If you price your home reasonably, buyers will show up. If you don't, buyers will wait for you to lower the price," said Palmer. "I recently listed a Pixar Upper for $550,000 and it received 14 offers, sold for $75,000 over asking price and the buyer gave up on any situation."

Highlights at the metro level:

New listings: New listings rose the most from a year earlier in Austin, Texas (44.6%), Dallas (38.1%) and Charleston, South Carolina (36.8%). They fell in two metros – Albany, New York (-2.9%) and Buffalo, New York (-0.7%) – and were flat in Fresno, California (0%).

Active listings (total offer): Active listings rose fastest in Cape Coral, Florida (60.6%), North Port, Florida (52.5%) and Fort Lauderdale, Florida (25.5%). They fell the fastest in Raleigh, North Carolina (-24.4%), New Brunswick, New Jersey (-19%) and Nassau County, New York (-18.5%).

Prices: Median sales prices rose the most from a year earlier in Newark, New Jersey (16.5%), Anaheim, California (15.8%) and Grand Rapids, Michigan (15.8%). They fell in three metropolitan areas: San Antonio (-4.2%), Memphis, Tennessee (-3.5%) and North Port (-2.2%).

Closed house sales: Closed sales rose the most in San Jose, California (24.9%), San Francisco (21.1%) and Dayton, Ohio (15.1%). They fell the most in Frederick, Maryland (-14.8%), New Orleans (-14.2%) and Tulsa, Oklahoma (-14%).

Sold above list price: In San Jose, 65.3% of homes sold above their final list price, the highest share among the metros Redfin analyzed. This was followed by Rochester, New York (62.8%) and Oakland, California (62.3%). Shares were lowest in North Port (6.6%), Cape Coral (8.3%) and West Palm Beach, Florida (8.7%).

Off the market in two weeks: In Seattle, 77.4% of homes that went under contract did so within two weeks – the highest share of any metropolitan area analyzed by Redfin. Then came Rochester (75%) and San Jose (70.9%). The lowest shares were in Honolulu (8.4%), Greensboro, North Carolina (19%) and McAllen, Texas (20.8%).

Days on the market: The typical home that went under contract in Seattle did so in 11 days, making it the fastest market of those analyzed by Redfin. Then came Rochester (12) and San Jose (12). The slowest markets were New Orleans (97), Austin (82) and Honolulu (77).