According to data from Redfin, the median home sale price increased 7% to $261,000 in January and home sales increased 5.6%. Redfin staffer Jeffery Marino reports on these increases and also notes inventory's substantial decline of 12%, its largest decline since April 2013.

The price growth and improved home sales were fueled by the more affordable metros. Phoenix Redfin real estate agent Kelly Money explains how residents from the the nation's most expensive metro, San Francisco, are relocating from the Bay Area to take advantage of the more affordable housing:

The cost of their mortgage plus weekly airfare is still more affordable than buying a home in San Francisco. It’s a wild idea at first, but when people see they can get 3,000 square feet, a backyard and a swimming pool for less than the rent on their studio apartment, it starts to make sense.”

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