In June, median home prices slipped -0.9% year
over year as new listings of homes for sale dipped 25.7% annually
and fell below their previous pandemic lows
SANTA
CLARA, Calif., June 29,
2023 /PRNewswire/ -- The U.S. median home listing
price slipped -0.9% annually in June, posting the first yearly
decline since 2017, the start of Realtor.com®'s trends
data, according to its June Monthly Housing Trends Report released
today. At the same time, while home shoppers had more homes to
choose from this month, improvement stalled as the active inventory
growth rate slowed for the fourth month in a row (+7.1%) and came
in well below May's +21.5% rate.
"While home asking prices grew seasonally, price gains have been
weakening since last summer as rising mortgage rates have added to
ongoing affordability challenges and further cooled buyer demand,
so the first year-over-year decline in median list prices this
month wasn't unexpected. While this could feel like a welcome
relief for buyers, our revised 2023 outlook expects only a modest
drop in home prices of 0.6% for the year. This may not be enough to
noticeably bring down costs until the end of the year as inflation
and rates start to fall too," said Danielle
Hale, Chief Economist for Realtor.com®. "Fewer
potential sellers opting to list their home because of the mortgage
rate lock-in effect continues to be a drag on the market.
Fortunately, for those willing to make a move, falling prices won't
erase the substantial price gains seen the past few years, and most
will likely have enough equity to come out ahead."
What it means for homebuyers, sellers, and the housing
market
Affordability has evolved into an increasingly
important factor in home purchase decisions, and a drop in home
listing prices creates potential opportunities for buyers,
especially with some creativity.
"If buyers see homes sitting on the market for a while that
haven't received many good offers, there may be some opportunities
for further negotiations. It never hurts to ask a seller if they
would be willing to reduce their price a little, contribute to
closing costs, or even buy down their mortgage rate," said
Realtor.com® Executive News Editor Clare Trapasso. "While this likely won't work
for the well-located, move-in ready homes oozing curb appeal,
buyers may want to take another look at homes that may need a
little work. Sometimes a coat of paint and minor work can make a
big difference."
June 2023 Housing Metrics –
National
Metric
|
Change over June
2022
|
Change over June
2019
|
Median listing
price
|
-0.9% (to
$445,000)
|
+39.1 %
|
Active
listings
|
+7.1 %
|
-49.7 %
|
New listings
|
-25.7 %
|
-28.8 %
|
Median days on
market
|
+13 days (to 44
days)
|
-10 days
|
Share of active
listings with
price reductions
|
+-0.7 percentage
points
(to 14.1%)
|
-2.9 percentage
points
|
|
Home asking prices see first annual decline as high borrowing
costs create barriers
Recent near-record high mortgage rates
and still-high listing prices continue to create affordability
challenges for homebuyers, which is putting downward pressure on
home list prices, which slipped annually in June for the first time
since 2017. Despite high borrowing costs and a low inventory of
homes to choose from in the market, homebuying sentiment continues
to improve in recent months, and a new survey from
Realtor.com® and Censuswide found that the vast majority
of respondents, nearly 9 in 10 of those shopping, still hope to
make a home purchase happen this year.
- In June, the U.S. median list price grew to $445,000, up from $441,000 in May but down slightly (-0.9%) from
June 2022's record high of $449,000.
- Northeastern metros had the highest growth rate in active
listing prices, with an average increase of 11.7% over the past
year. Prices in Cincinnati, Ohio
(+20.0%), Rochester, N.Y.
(+19.6%), and Los Angeles (+17.7%)
saw the biggest increases among large metros. However, in each of
these metros the mix of inventory changed and larger, more
expensive homes were listed for sale in June compared to the
previous year.
- Among the 50 largest U.S. metros, 15 out of the largest 50
markets saw their median list price decline. The greatest price
declines were seen in Texas
metros: Austin (-6.8% year over
year), Houston (-5.1%), and
Raleigh, N.C. (-4.2%).
- Nationally, the share of homes with price reductions was mostly
flat in June, decreasing slightly from 14.7% last June to 14.1%
this year.
- Among the largest metros, the largest increases in the
percentage of homes with price reductions compared to last year
were in San Antonio, Texas (+8.3
percentage points), Memphis, Tenn.
(+6.3 pp) and Jacksonville, Fla.
(+4.7 pp).
Buyers short on options as active inventory declines in many
areas
There continues to be an ongoing lack of homes for
sale as potential sellers with near-record equity take a
wait-and-see approach and buyers compete over the remaining
available homes for sale. In June, the growth in the number of
active homes for sale slowed for the fourth month in a row, and
growth stalled completely in the final week of June, with the
number of active homes for sale slipping below (-0.3%) year ago
levels for the first time in a year (59 weeks). New listings
to the market have been scarce this year too – the pace of new
listings year-to-date is even lower (-16.4%) than in the first half
of 2020, when the real estate market was still contending with
pandemic-era closures, restrictions, and uncertainties –
highlighting just how short on options buyers are in today's
market.
- Nationally, active inventory grew 7.1% year over year in June,
but slowed for the fourth month in a row, registering less than
half of May's 21.5% rate. On average, active inventory in June was
50.6% below pre-pandemic 2017–2019 levels.
- Both pending listings (-16.7%), or homes under contract, and
newly listed homes (-25.7%) declined year over year. The number of
homes newly-listed for sale declined at a faster rate in June than
May's 22.7% decrease.
- Among the 50 largest metros, inventory growth is being driven
almost exclusively by the South, which saw the most growth (+24.1%)
in homes for sale compared to last June, led by San Antonio (+65.7%), Nashville, Tenn. (63.3%) and New Orleans (60.0%). All other regions saw
declining annual growth in active inventory in June.
- Active inventory decreased in 28 out of 50 of the largest
metros compared to last year. Western markets reported the largest
yearly declines, with the top three in California metros: San Jose, (-44.1%), San Diego (-35.9%), and Sacramento (-33.4%).
- In June, none of the 50 largest metro areas saw new listings
increase over last year.
Homes continue to linger longer on the market, giving buyers
more time to search
Despite a significant slowing from the
frenzied pace of the past couple years, in most areas of the
country, the housing market continues to move quicker than it did
in the pre-pandemic era, with homes today selling more than a week
faster on average than in pre-pandemic June 2017-2019.
- The typical home spent 43 days on market in June, 14 days
longer than this time last year, but 10 fewer days than they
typically did in the average June 2017–2019.
- Across the 50 largest U.S. metros, in June the typical home
spent 44 days on the market, 13 days more than the previous June.
This trend was seen across all regions, with larger metros in the
South seeing the greatest increase (+15 days), followed by the West
(+9 days), Northeast (+7 days) and Midwest (+6 days). Homes in
Western metros were also spending one more day on the market than
pre-pandemic times, but in all other regions homes were still
selling more quickly.
- All of the 50 largest metros saw an increase in time on market
compared to the previous year. Time on market increased the most in
Raleigh, N.C. (+26 days),
Austin, Texas (+25 days), and
Miami (+25 days).
June 2023 Housing Overview by
Top 50 Largest Metros
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.
|
$439,000
|
-2.2 %
|
-0.4 %
|
9.5 %
|
-29.1 %
|
40
|
13
|
13.6 %
|
-0.5 pp
|
Austin-Round
Rock-Georgetown, Texas
|
$580,000
|
-6.8 %
|
-5.3 %
|
47.8 %
|
-31.1 %
|
45
|
25
|
33.0 %
|
1.1 pp
|
Baltimore-Columbia-Towson, Md.
|
$366,000
|
0.7 %
|
3.9 %
|
-18.2 %
|
-24.0 %
|
36
|
6
|
10.8 %
|
-2.0 pp
|
Birmingham-Hoover,
Ala.
|
$300,000
|
0.5 %
|
3.6 %
|
22.8 %
|
-22.4 %
|
43
|
14
|
12.2 %
|
1.8 pp
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$866,000
|
15.5 %
|
9.4 %
|
-15.9 %
|
-30.0 %
|
24
|
7
|
12.0 %
|
-2.3 pp
|
Buffalo-Cheektowaga,
N.Y.
|
$278,000
|
13.5 %
|
9.9 %
|
-3.8 %
|
-18.1 %
|
31
|
10
|
7.1 %
|
0.3 pp
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$441,000
|
0.1 %
|
2.5 %
|
10.4 %
|
-34.9 %
|
38
|
12
|
12.6 %
|
0.0 pp
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$382,000
|
6.3 %
|
0.2 %
|
-23.4 %
|
-26.4 %
|
34
|
5
|
9.7 %
|
-2.8 pp
|
Cincinnati,
Ohio-Ky.-Ind.
|
$390,000
|
20.0 %
|
9.7 %
|
-1.7 %
|
-22.4 %
|
30
|
8
|
10.3 %
|
0.8 pp
|
Cleveland-Elyria,
Ohio
|
$248,000
|
10.4 %
|
4.8 %
|
-9.4 %
|
-25.1 %
|
38
|
5
|
10.5 %
|
0.5 pp
|
Columbus,
Ohio
|
$399,000
|
14.1 %
|
6.3 %
|
-1.3 %
|
-24.5 %
|
23
|
7
|
14.4 %
|
2.3 pp
|
Dallas-Fort
Worth-Arlington, Texas
|
$473,000
|
-3.5 %
|
-3.6 %
|
30.1 %
|
-26.4 %
|
36
|
14
|
20.5 %
|
3.8 pp
|
Denver-Aurora-Lakewood,
Colo.
|
$680,000
|
0.0 %
|
4.0 %
|
6.1 %
|
-26.1 %
|
29
|
13
|
20.3 %
|
-1.2 pp
|
Detroit-Warren-Dearborn, Mich.
|
$270,000
|
-3.6 %
|
-0.3 %
|
-15.9 %
|
-27.7 %
|
31
|
8
|
14.2 %
|
-2 pp
|
Hartford-East
Hartford-Middletown, Conn.
|
$434,000
|
17.4 %
|
3.5 %
|
-27.9 %
|
-24.9 %
|
18
|
1
|
5.9 %
|
-0.7 pp
|
Houston-The
Woodlands-Sugar Land, Texas
|
$379,000
|
-5.1 %
|
-2.4 %
|
23.6 %
|
-20.9 %
|
40
|
9
|
16.2 %
|
0.0 pp
|
Indianapolis-Carmel-Anderson, Ind.
|
$350,000
|
9.4 %
|
6.7 %
|
18.3 %
|
-24.9 %
|
36
|
10
|
16.9 %
|
3.9 pp
|
Jacksonville,
Fla.
|
$439,000
|
-0.1 %
|
-1.7 %
|
39.3 %
|
-27.8 %
|
45
|
17
|
18.7 %
|
4.7 pp
|
Kansas City,
Mo.-Kan.
|
$453,000
|
13.6 %
|
11.1 %
|
11.1 %
|
-24.8 %
|
50
|
12
|
12.0 %
|
3.8 pp
|
Las
Vegas-Henderson-Paradise, Nev.*
|
$455,000
|
N/A
|
N/A
|
N/A
|
N/A
|
45
|
N/A
|
13.6 %
|
N/A
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$1,172,000
|
17.7 %
|
6.7 %
|
-20.8 %
|
-30.8 %
|
39
|
9
|
8.7 %
|
-6.0 pp
|
Louisville/Jefferson
County, Ky.-Ind.
|
$325,000
|
8.3 %
|
6.8 %
|
-4.4 %
|
-23.5 %
|
29
|
7
|
13.3 %
|
-0.4 pp
|
Memphis,
Tenn.-Miss.-Ark.
|
$327,000
|
7.3 %
|
2.6 %
|
59.4 %
|
-18.9 %
|
44
|
14
|
16.2 %
|
6.3 pp
|
Miami-Fort
Lauderdale-Pompano Beach, Fla.
|
$605,000
|
-3.2 %
|
1.6 %
|
30.4 %
|
-28.8 %
|
62
|
25
|
12.7 %
|
1.0 pp
|
Milwaukee-Waukesha,
Wis.
|
$380,000
|
13.5 %
|
10.2 %
|
-25.0 %
|
-22.6 %
|
29
|
2
|
8.6 %
|
-1.7 pp
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$460,000
|
8.9 %
|
3.8 %
|
-4.7 %
|
-17.8 %
|
31
|
3
|
11.2 %
|
0.2 pp
|
Nashville-Davidson-Murfreesboro-Franklin,
Tenn.
|
$591,000
|
5.2 %
|
1.3 %
|
63.3 %
|
-24.9 %
|
34
|
19
|
20.8 %
|
3.5 pp
|
New Orleans-Metairie,
La.
|
$345,000
|
-1.4 %
|
-0.2 %
|
60.0 %
|
-18.7 %
|
58
|
19
|
20.1 %
|
2.2 pp
|
New York-Newark-Jersey
City, N.Y.-N.J.-Pa.
|
$749,000
|
11.0 %
|
17.7 %
|
-14.3 %
|
-26.7 %
|
51
|
12
|
8.2 %
|
-2.3 pp
|
Oklahoma City,
Okla.
|
$350,000
|
8.7 %
|
0.8 %
|
29.3 %
|
-24.1 %
|
45
|
15
|
15.4 %
|
4.5 pp
|
Orlando-Kissimmee-Sanford, Fla.
|
$459,000
|
-1.2 %
|
-0.5 %
|
21.4 %
|
-29.0 %
|
46
|
18
|
14.9 %
|
0.8 pp
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$355,000
|
1.9 %
|
2.9 %
|
-13.9 %
|
-26.0 %
|
45
|
10
|
11.5 %
|
-1.5 pp
|
Phoenix-Mesa-Chandler,
Ariz.
|
$540,000
|
-1.4 %
|
-4.9 %
|
-16.0 %
|
-47.8 %
|
44
|
21
|
19.8 %
|
-9.5 pp
|
Pittsburgh,
Pa.
|
$240,000
|
0.2 %
|
-3.7 %
|
-0.9 %
|
-18.9 %
|
47
|
10
|
14.2 %
|
-0.5 pp
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$640,000
|
6.7 %
|
-0.5 %
|
8.1 %
|
-25.1 %
|
34
|
10
|
16.1 %
|
-5.2 pp
|
Providence-Warwick,
R.I.-Mass.
|
$550,000
|
14.5 %
|
0.2 %
|
-19.4 %
|
-33.6 %
|
31
|
9
|
6.4 %
|
-2.8 pp
|
Raleigh-Cary,
N.C.
|
$479,000
|
-4.2 %
|
-3.2 %
|
19.8 %
|
-33.2 %
|
43
|
26
|
12.3 %
|
-1.3 pp
|
Richmond,
Va.
|
$442,000
|
12.4 %
|
8.4 %
|
1.9 %
|
-27.4 %
|
40
|
9
|
7.1 %
|
-0.4 pp
|
Riverside-San
Bernardino-Ontario, Calif.
|
$580,000
|
-3.2 %
|
1.0 %
|
-18.1 %
|
-35.5 %
|
44
|
13
|
11.9 %
|
-7.6 pp
|
Rochester,
N.Y.
|
$274,000
|
19.6 %
|
11.4 %
|
-11.3 %
|
-18.9 %
|
12
|
1
|
7.0 %
|
-2.2 pp
|
Sacramento-Roseville-Folsom, Calif.
|
$679,000
|
5.6 %
|
-2.9 %
|
-33.4 %
|
-31.1 %
|
33
|
4
|
12.4 %
|
-12.3 pp
|
San Antonio-New
Braunfels, Texas
|
$367,000
|
-3.9 %
|
-2.0 %
|
65.7 %
|
-18.3 %
|
47
|
17
|
22.7 %
|
8.3 pp
|
San Diego-Chula
Vista-Carlsbad, Calif.
|
$1,095,000
|
15.4 %
|
6.2 %
|
-35.9 %
|
-36.7 %
|
31
|
7
|
10.7 %
|
-7.1 pp
|
San
Francisco-Oakland-Berkeley, Calif.
|
$1,150,000
|
0.4 %
|
-1.0 %
|
-30.0 %
|
-33.7 %
|
32
|
8
|
10.1 %
|
-4.7 pp
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$1,498,000
|
0.2 %
|
-0.8 %
|
-44.1 %
|
-33.0 %
|
29
|
5
|
8.1 %
|
-9.1 pp
|
Seattle-Tacoma-Bellevue, Wash.
|
$825,000
|
2.8 %
|
3.3 %
|
-25.1 %
|
-37.0 %
|
29
|
7
|
12.5 %
|
-5.8 pp
|
St. Louis,
Mo.-Ill.
|
$289,000
|
3.5 %
|
5.1 %
|
-3.1 %
|
-18.2 %
|
39
|
7
|
10.3 %
|
-0.1 pp
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$445,000
|
-1.0 %
|
0.6 %
|
30.5 %
|
-29.0 %
|
46
|
20
|
18.8 %
|
0.5 pp
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$395,000
|
12.9 %
|
6.5 %
|
-9.6 %
|
-27.8 %
|
29
|
6
|
11.5 %
|
-1.5 pp
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$644,000
|
9.2 %
|
4.9 %
|
-26.3 %
|
-30.2 %
|
32
|
6
|
9.1 %
|
-5 pp
|
*Some Las Vegas listing
metrics have been excluded while data is under review.
|
|
Methodology
Realtor.com® housing data as of
June 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®
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