With median sale price growth slowing to 4.8 per cent the Seattle-based company says inventory fell to record lows in Seattle, Portland, Louisville and other regions.
"New listings rebounded in a big way after getting off to a weak start at the beginning of the year,” says Redfin chief economist Nela Richardson.
“There were enough new listings in February to cut the inventory deficit in half. More listings also had a side benefit of curbing the strong acceleration in prices we saw the last two months.”
The median sale price grew 4.8 per cent to $251,727, a smaller increase than the 6.3 per cent average over the past year.
Year on year, sales were up 4.8 per cent in February, a lower rate than in December and January. Overall inventory fell 3.7 per cent year over year, a slower decline than in recent months, but a disappointing number for home buyers hoping for more choices as the US spring selling season approaches.
Redfin reports the market was slightly more competitive than a year earlier. A typical home spent 47 days on the market, down from 52 days, and 17.7 percent of homes sold above asking price, compared with 16.7 percent last year.
"There were 4.2 months of supply, down from 4.5, with six months representing a market balanced between buyers and sellers," the report says.
"If big increases in new listings continue into the spring, there is hope that the market will turn in buyers’ favor."
Redfin says the data recorded so far in 2016, shows inventory shortages characteristic of expensive Western regions with robust job growth have now spread inland.
"Metro areas that pair strong local economies with more affordably-priced homes, like Grand Rapids, Indianapolis, Louisville, Minneapolis and Nashville are seeing patterns similar to those well established on the West Coast."