Despite severe winter weather conditions across the nation, the 2014 home buying season got off to a good start with a year-over-year increase in inventory and sustained growth in home prices.
The median list price for January rose 8.3 percent compared to the same time last year, according to the realtor.com® data. The number of properties for sale was up 3.1 percent. And the median age of inventory was essentially unchanged, indicating a transition to a “less frenzied market” than in January 2013.
Looking ahead, the national median existing home price is projected to rise about 5 percent to 6 percent in 2014, according to the National Association of REALTORS®, which cites job growth and large, pent-up demand as drivers of the market in light of rising mortgage rates.
The California, Detroit and Nevada markets continue to top the list of areas with the largest year-over-year increases in median list prices, boasting increases of 20 percent or more.
But the polar vortex took a toll in some parts of the nation. Strong markets hit hard by winter weather — such as Boston, Chicago and Detroit — saw up to 10 percent month-over-month declines in inventory. Once winter weather subsides, however, these markets may experience a strong recovery, realtor.com® analysts said.