Despite slim pickings and affordability
challenges, buyers got a jump on spring shopping in March, but
rising rates could cause a late-spring frost
SANTA
CLARA, Calif., March 30,
2023 /PRNewswire/ -- Spring is officially here, and
like green shoots emerging from the bleak winter, new data suggests
that more buyers are back in the market, although more subdued
compared to a year ago. According to the Realtor.com®
Monthly Housing Trends Report released today, the recent six-month
surge in active listings lost momentum, moderating to 59.9%
year-over-year, and time on market shrank to 54 days, from
January's high of 74 days, as buyers eased back into the market in
March, but higher mortgage rates could freeze them back out.
"Signs show that buyers are active in the spring housing market,
even if they aren't as numerous as they were during the pandemic.
Amid fewer new choices on the market and still rising home prices,
home shoppers have shown that they are very rate sensitive, only
jumping back in the market when rates dip, and so what happens with
rates this spring will likely play a strong role in determining
whether the housing market bumps along or picks up speed this
year," said Danielle Hale, Chief
Economist for Realtor.com®. "With so much built up
equity, home sellers are still faring well, but many are sitting on
the sidelines. The usual seasonal pick-up in buyer demand appears
to be underway, one of several factors that make spring the Best
Time to Sell. With an uncertain market ahead, it may be even more
important for potential sellers to aim for this year's seasonal
sweet spot."
Now may be the best time to sell, and homeowners need to put
their best foot forward
If homeowners are planning to sell in 2023, now is the time to
get ready. Realtor.com®'s Best Time to Sell analysis
found that nationally, the week of April
16-22, 2023 will bring sellers the best combination of
market conditions this year, including higher home prices, fewer
other homes for sale, a faster sale, and stronger demand.
"Well-priced, move-in ready homes with curb appeal in desirable
areas are still receiving multiple offers and selling for over the
asking price in many parts of the country," said
Realtor.com®'s Executive News Editor Clare Trapasso. "So this spring, it's especially
important for sellers to make their homes as attractive as possible
to appeal to as many buyers as possible. They should make any
necessary repairs, spruce up the landscaping, and invest in staging
and professional photographs. Homes that are priced too high, are
in need of major repairs, or aren't presented professionally are
often sitting on the market for longer and sometimes selling for
under the initial asking price."
March 2023 Housing Metrics –
National
Metric
|
Change over March
2022
|
Change over March
2019
|
Median listing
price
|
+6.3% (to
$424,000)
|
+38.8 %
|
Active
listings
|
+59.9 %
|
-49.5 %
|
New listings
|
-20.1 %
|
-26.9 %
|
Median days on
market
|
+18 days (to 54
days)
|
-18 days
|
Share of active
listings with price
reductions
|
+6.8 percentage
points
(to 12.6%)
|
-2.3 percentage
points
|
Lack of new homes coming on to the market a drag on home
sales
The U.S. inventory of active listings continued to
climb in March over last year's lows, but the rate of growth cooled
slightly from the brisk pace seen the previous two months. With new
listings remaining scarce in March, the rise in the number of homes
for sale is a reflection of more time spent on the market compared
to last year rather than an influx of new sellers. A lack of new
homes to the market continues to be a drag on home sales; attitudes
toward housing worsened in February, especially among potential
sellers, which likely signals ongoing weakness in the number of new
homes for sale this year. Higher interest rates continue to create
affordability challenges for buyers, and fewer homes went under
contract compared to last year.
- The U.S. supply of active listings for sale rose 59.9% compared
to this time last year, but it is still 49.6% below pre-pandemic
2017 - 2019 levels, on average. There were 211,000 more homes
available to buy in March compared to one year ago.
- Newly-listed homes for sale continued to fall in March (-20.1%)
compared to this time last year. This is a higher rate of decline
than last month's 15.9% decrease and 29.7% below pre-pandemic 2017
- 2019 levels. Pending listings, or homes under contract with a
buyer, declined year-over-year (-24.5%).
- The number of homes for sale across the 50 largest metros was
up 74.4% compared to a year ago. The South saw the highest growth
in active listings (+127.4%).
- Among the 50 largest U.S. metros, 47 markets saw active
inventory increase compared to last March, with the most growth in
Austin (+312.2%), Raleigh (+273.7%), and Nashville (+253.3%). Only three markets had
inventory declines on a year-over-year basis, including
Milwaukee (-17.2%), Hartford (-17.0%), and New York (-0.9%).
Home prices continue to rise but could decline compared to
last year as early as summer
In March, national median list
prices continued to rise year-over-year, but the rate at which
prices are rising slowed to the lowest level since June 2020, in the early months of the COVID-19
pandemic. At this rate of slowing, list prices could decline
relative to last year as early as this summer, following the recent
national median sale price decline, which fell annually for the
first time in 10 years last month. The share of homes with price
reductions is up significantly from last year, but dipped below
2017–2019 pre-pandemic levels in February and continued to decline
in March, indicating that the smaller number of homeowners who are
putting their homes up for sale appear to be readjusting their home
price expectations to the realities of today's market.
- The national median listing price was $424,000 in March, up from $415,000 in February. Annual list price growth
continued to slow to 6.3% over last year, the lowest rate of growth
since June 2020, in the early months
of the COVID-19 pandemic.
- Among the 50 largest U.S. metros, the biggest annual listing
price gains continue to be in the Midwest, up 14.1%, on average
from last year. The metros with the biggest asking price increases
were Memphis, Tenn. (+40.3%),
Milwaukee (+26.3%), and
Kansas City, Mo. (+17.7%);
however, in these metros the mix of inventory also changed and more
larger, expensive homes are for sale today.
- In March, 12.6% of active listings had their price reduced, up
from 5.8% a year ago.
- Nine out of the largest 50 markets saw their median list price
decline in March. Large southern metros (+9.1 percentage points)
continued to see the largest increase in the share of listings with
price reductions, and the greatest year-over-year declines in the
median list price were seen in Austin,
Texas (-8.4% year-over-year), Las
Vegas (-6.7%), and New
Orleans (-5.1%).
Homes are taking longer to sell, but not as long as
pre-pandemic levels
A typical home spent more time on market
compared to last year, although after rising steadily from summer
2022, the usual seasonal pickup in the sales pace shrank the gap
and homes sold faster in March than in January and February,
suggesting that buyers are active in the market, even if they are
not as numerous as this time last year. Even though the typical
home listing was on the market for more than two weeks longer than
this time last year, homes are still selling just over two weeks
faster on average than before the pandemic boom.
- In March, the typical home spent 54 days on market, 18 days
longer than this time last year, but still 15 days faster than the
pre-pandemic March 2017-2019 average.
- Across the 50 largest U.S. metros, time on market was lower in
March relative to the national pace, 46 days on average, and was 16
days slower than March 2022.
- Time on market increased compared to last year in all 50 metros
with the greatest increases in Raleigh,
N.C. (+42 days), Kansas City,
Mo. (+37 days), and Austin,
Texas (+37 days).
March 2023 Housing Metrics – 50
Largest U.S. Metro Areas
Metro
Area
|
Median
Listing
Price
|
Median
Listing
Price
YoY
|
Median
Listing
Price
per Sq.
Ft. YoY
|
Active
Listing
Count
YoY
|
New Listing
Count YoY
|
Median
Days on
Market
|
Median
Days on
Market Y-Y
(Days)
|
Price
Reduced
Share
|
Price
Reduced
Share Y-Y
(Percentage
Points)
|
Atlanta-Sandy
Springs-Alpharetta, Ga.
|
$410,000
|
2.5 %
|
0.9 %
|
70.0 %
|
-16.6 %
|
47
|
13
|
13.0 %
|
7.3 pp
|
Austin-Round
Rock-Georgetown, Texas
|
$550,000
|
-8.4 %
|
-10.7 %
|
312.2 %
|
1.1 %
|
52
|
37
|
26.5 %
|
21.6 pp
|
Baltimore-Columbia-Towson, Md.
|
$348,000
|
7.5 %
|
4.0 %
|
14.1 %
|
-27.1 %
|
44
|
12
|
10.2 %
|
2.9 pp
|
Birmingham-Hoover,
Ala.
|
$279,000
|
5.2 %
|
5.7 %
|
63.3 %
|
-15.7 %
|
54
|
20
|
13.1 %
|
6.7 pp
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$824,000
|
9.9 %
|
-0.8 %
|
24.0 %
|
-39.6 %
|
30
|
12
|
8.4 %
|
4.0 pp
|
Buffalo-Cheektowaga,
N.Y.
|
$246,000
|
11.9 %
|
8.8 %
|
22.4 %
|
-10.8 %
|
46
|
3
|
5.6 %
|
2.6 pp
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$401,000
|
0.2 %
|
1.7 %
|
110.0 %
|
-2.6 %
|
43
|
24
|
12.3 %
|
6.8 pp
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$352,000
|
5.9 %
|
-4.4 %
|
1.6 %
|
-27.6 %
|
42
|
6
|
9.1 %
|
3.2 pp
|
Cincinnati,
Ohio-Ky.-Ind.
|
$367,000
|
15.0 %
|
4.2 %
|
19.3 %
|
-24.2 %
|
43
|
8
|
8.1 %
|
3.8 pp
|
Cleveland-Elyria,
Ohio
|
$211,000
|
11.0 %
|
8.4 %
|
18.7 %
|
-21.0 %
|
47
|
5
|
9.5 %
|
3.4 pp
|
Columbus,
Ohio
|
$375,000
|
12.8 %
|
5.2 %
|
26.9 %
|
-19.6 %
|
32
|
16
|
12.0 %
|
6.8 pp
|
Dallas-Fort
Worth-Arlington, Texas
|
$442,000
|
4.0 %
|
0.0 %
|
172.0 %
|
3.2 %
|
46
|
22
|
15.5 %
|
11.5 pp
|
Denver-Aurora-Lakewood,
Colo.
|
$655,000
|
-1.2 %
|
0.2 %
|
86.3 %
|
-17.1 %
|
28
|
22
|
12.8 %
|
9.3 pp
|
Detroit-Warren-Dearborn, Mich.
|
$236,000
|
3.8 %
|
0.8 %
|
24.5 %
|
-25.8 %
|
49
|
22
|
12.1 %
|
4.0 pp
|
Hartford-East
Hartford-Middletown, Conn.
|
$403,000
|
15.1 %
|
5.3 %
|
-17.0 %
|
-35.0 %
|
36
|
10
|
4.5 %
|
0.6 pp
|
Houston-The
Woodlands-Sugar Land, Texas
|
$361,000
|
-3.3 %
|
-1.4 %
|
63.2 %
|
-9.8 %
|
49
|
11
|
13.8 %
|
6.4 pp
|
Indianapolis-Carmel-Anderson, Ind.
|
$311,000
|
4.8 %
|
4.9 %
|
71.1 %
|
-7.6 %
|
49
|
15
|
13.1 %
|
6.5 pp
|
Jacksonville,
Fla.
|
$400,000
|
0.5 %
|
1.9 %
|
176.6 %
|
1.7 %
|
54
|
18
|
17.0 %
|
12.2 pp
|
Kansas City,
Mo.-Kan.
|
$455,000
|
17.7 %
|
11.1 %
|
68.0 %
|
-26.4 %
|
82
|
37
|
8.3 %
|
4.7 pp
|
Las
Vegas-Henderson-Paradise, Nev.
|
$450,000
|
-6.7 %
|
-3.7 %
|
86.1 %
|
-30.7 %
|
55
|
30
|
20.1 %
|
12.3 pp
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$1,000,000
|
2.5 %
|
2.6 %
|
33.2 %
|
-35.7 %
|
47
|
17
|
9.3 %
|
5.3 pp
|
Louisville/Jefferson
County, Ky.-Ind.
|
$305,000
|
5.2 %
|
1.0 %
|
36.2 %
|
-27.1 %
|
37
|
14
|
13.0 %
|
6.7 pp
|
Memphis,
Tenn.-Miss.-Ark.
|
$319,000
|
40.3 %
|
17.4 %
|
117.4 %
|
-7.8 %
|
54
|
18
|
14.5 %
|
8.2 pp
|
Miami-Fort
Lauderdale-Pompano Beach, Fla.
|
$599,000
|
10.1 %
|
2.9 %
|
87.8 %
|
-15.7 %
|
63
|
20
|
14.2 %
|
9.7 pp
|
Milwaukee-Waukesha,
Wis.
|
$366,000
|
26.3 %
|
10.8 %
|
-17.2 %
|
-18.8 %
|
33
|
4
|
7.2 %
|
1.8 pp
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$451,000
|
8.8 %
|
16.1 %
|
15.3 %
|
-27.7 %
|
40
|
11
|
7.1 %
|
3.5 pp
|
Nashville-Davidson-Murfreesboro-Franklin,
Tenn.
|
$527,000
|
5.5 %
|
-0.1 %
|
253.3 %
|
7.4 %
|
36
|
25
|
18.1 %
|
12.9 pp
|
New Orleans-Metairie,
La.
|
$330,000
|
-5.1 %
|
-2.9 %
|
109.0 %
|
1.4 %
|
59
|
15
|
18.4 %
|
8.2 pp
|
New York-Newark-Jersey
City, N.Y.-N.J.-Pa.
|
$699,000
|
7.6 %
|
6.4 %
|
-0.9 %
|
-29.2 %
|
61
|
15
|
7.3 %
|
1.9 pp
|
Oklahoma City,
Okla.
|
$350,000
|
3.3 %
|
4.6 %
|
129.1 %
|
-19.7 %
|
51
|
15
|
12.0 %
|
6.3 pp
|
Orlando-Kissimmee-Sanford, Fla.
|
$441,000
|
6.9 %
|
4.1 %
|
136.4 %
|
-14.6 %
|
54
|
23
|
13.7 %
|
8.8 pp
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$327,000
|
5.6 %
|
2.9 %
|
15.0 %
|
-25.3 %
|
53
|
15
|
10.9 %
|
3.7 pp
|
Phoenix-Mesa-Chandler,
Ariz.
|
$499,000
|
-0.1 %
|
-3.3 %
|
184.6 %
|
-22.1 %
|
51
|
23
|
24.4 %
|
18.2 pp
|
Pittsburgh,
Pa.
|
$215,000
|
-2.3 %
|
-2.1 %
|
27.0 %
|
-10.9 %
|
65
|
8
|
12.1 %
|
4.2 pp
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$615,000
|
7.0 %
|
-1.8 %
|
57.9 %
|
-32.1 %
|
45
|
18
|
10.3 %
|
0.9 pp
|
Providence-Warwick,
R.I.-Mass.
|
$513,000
|
16.0 %
|
6.9 %
|
17.4 %
|
-40.0 %
|
42
|
11
|
5.8 %
|
2.1 pp
|
Raleigh-Cary,
N.C.
|
$450,000
|
0.0 %
|
-3.1 %
|
273.7 %
|
3.4 %
|
53
|
42
|
12.3 %
|
9.3 pp
|
Richmond,
Va.
|
$402,000
|
12.1 %
|
6.8 %
|
51.4 %
|
-19.8 %
|
44
|
11
|
7.7 %
|
5.1 pp
|
Riverside-San
Bernardino-Ontario, Calif.
|
$559,000
|
-2.4 %
|
1.2 %
|
71.1 %
|
-33.9 %
|
56
|
26
|
12.4 %
|
7.4 pp
|
Rochester,
N.Y.
|
$257,000
|
17.1 %
|
10.1 %
|
8.2 %
|
-25.1 %
|
26
|
15
|
6.8 %
|
2.0 pp
|
Sacramento-Roseville-Folsom, Calif.
|
$627,000
|
-0.4 %
|
-4.8 %
|
14.5 %
|
-44.5 %
|
43
|
19
|
9.9 %
|
3.4 pp
|
San Antonio-New
Braunfels, Texas
|
$347,000
|
0.3 %
|
-0.3 %
|
161.1 %
|
6.4 %
|
57
|
20
|
17.4 %
|
12.4 pp
|
San Diego-Chula
Vista-Carlsbad, Calif.
|
$950,000
|
7.7 %
|
3.2 %
|
24.6 %
|
-35.9 %
|
37
|
12
|
9.6 %
|
5.9 pp
|
San
Francisco-Oakland-Berkeley, Calif.
|
$1,080,000
|
3.1 %
|
-2.5 %
|
5.2 %
|
-39.0 %
|
34
|
12
|
9.0 %
|
4.8 pp
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$1,495,000
|
6.8 %
|
0.2 %
|
10.9 %
|
-39.7 %
|
28
|
13
|
7.2 %
|
4.4 pp
|
Seattle-Tacoma-Bellevue, Wash.
|
$789,000
|
5.2 %
|
3.0 %
|
66.3 %
|
-27.8 %
|
33
|
15
|
9.4 %
|
6.8 pp
|
St. Louis,
Mo.-Ill.*
|
$237,000
|
N/A*
|
N/A*
|
N/A*
|
N/A*
|
55
|
8
|
9.8 %
|
3.4 pp
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$411,000
|
2.8 %
|
1.4 %
|
187.6 %
|
-6.6 %
|
52
|
22
|
18.9 %
|
13.8 pp
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$373,000
|
14.2 %
|
6.8 %
|
23.3 %
|
-23.7 %
|
39
|
17
|
11.0 %
|
6.0 pp
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$599,000
|
10.0 %
|
0.5 %
|
14.2 %
|
-27.0 %
|
36
|
9
|
7.7 %
|
2.3 pp
|
*Some St. Louis listing metrics have been excluded while data is
under review.
Methodology
Realtor.com® housing data as of
March 2023. Listings include the
active inventory of existing single-family homes and
condos/townhomes/rowhomes/co-ops for the given level of geography
on Realtor.com; new construction is excluded unless listed via an
MLS that provides listing data to Realtor.com.
Realtor.com® data history goes back to July 2016. 50 largest U.S. metropolitan areas as
defined by the Office of Management and Budget (OMB).
About Realtor.com®
Realtor.com®
is an open real estate marketplace built for everyone.
Realtor.com® pioneered the world of digital real estate
more than 25 years ago. Today, through its website and mobile apps,
Realtor.com® is a trusted guide for consumers,
empowering more people to find their way home by breaking down
barriers, helping them make the right connections, and creating
confidence through expert insights and guidance. For professionals,
Realtor.com® is a trusted partner for business growth,
offering consumer connections and branding solutions that help them
succeed in today's on-demand world. Realtor.com® is
operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV]
subsidiary Move, Inc. For more information, visit
Realtor.com® .
Media Contact
press@move.com
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