After four months of slowing inventory growth,
active listings declined annually (-6.4%) in July for the first
time in more than a year
Home prices dipped (-0.9%) in July for the
second month in a row, as a rising number of buyers searched for
homes outside their metro area
SANTA
CLARA, Calif., Aug. 3, 2023
/PRNewswire/ -- The U.S. housing inventory crunch accelerated
in July as active listings growth slowed for the fourth month in a
row and fell below year ago levels (-6.4%) for the first time
since April 2022, according to the
July Monthly Housing Trends Report released today.
While buyers had fewer for-sale options, with active inventory
49.2% below typical pre-pandemic July levels, the market
tipped slightly in their favor as the median list price declined
year over year (-0.9% to $440,000)
for the second month in a row.
"While a second monthly year-over-year decline in list prices
bodes well for potential buyers, the ongoing lack of homes
available for sale continues to prop up home prices and will keep
declines relatively modest for the remainder of the year," said
Danielle Hale, Chief Economist for
Realtor.com®. "Interest rate hikes continue to further
cut into buyers' purchasing power, although they appear to have
adapted to the higher mortgage rate environment faster than
sellers, many of whom are still on the sidelines, locked in to
lower interest rates and unwilling to cash in their home's equity
to purchase another. That's putting a damper on home sales, which
will likely post their smallest annual tally this year in over a
decade."
July 2023 Housing Metrics –
National
Metric
|
Change over July
2022
|
Change over July
2019
|
Median listing
price
|
-0.9% (to
$440,000)
|
+37.7 %
|
Active
listings
|
-6.4 %
|
-47.8 %
|
New listings
|
-20.8 %
|
-27.1 %
|
Median days on
market
|
+11 days (to 45
days)
|
-12 days
|
Share of active
listings with price
reductions
|
-3.6 percentage
points
(to 15.5%)
|
-2.2 percentage
points
|
Home listing inventory crunch intensifies as fewer sellers
enter the market
Growth in the U.S. inventory of active
listings slowed for four months in a row, and in July, declined
compared to the previous year for the first time since early 2022.
That means today's buyers have significantly fewer options to
choose from compared to one year ago – on a typical day in July
there were 45,000 fewer homes available to buy. With interest rates
on track to remain elevated for the remainder of the year and
homeowners choosing to sell in lower numbers than has been typical
in recent years, the stock of homes for sale is expected to remain
low in the coming months.
- In July, the U.S. inventory of active listings slowed for the
fourth month in a row and decreased -6.4% compared to July 2022; the decline was the first since
April 2022. Inventory is 49.2% below
typical July pre-pandemic levels.
- Both newly listed homes (-20.8%) and pending listings (-12.6%),
or homes under contract, declined year over year. July's decline in
pending listings is smaller than June's -16.7% decline and much
improved from December's peak decline (-36.9% year over
year).
- Active inventory decreased in 38 out of 50 of the largest
metros compared to last year. Only the Southern region saw
inventory grow, up +2.8% year over year, led by New Orleans (+39.6%), San Antonio (+34.5%) and Memphis, Tenn. (+33.2%).
- In July, none of the 50 largest metro areas saw new listings
increase over the previous year. Declines were greatest in
Phoenix(-44.3%) Seattle (-38.4%) and San Jose, Calif. (-35.3%).
Home listing prices decline but mortgage rates keep purchase
costs high
In July, national median list prices
declined slightly year over year for the second month in a row.
Despite the dip, the low supply of homes for sale and a
resilient labor market are expected to keep upward pressure
on prices this year, as will still-high buyer demand. The housing
market continues to generally move faster than it did in the
pre-pandemic era despite significant slowing from the frenzied pace
of the past few years; while time on market is up slightly from
last year, the share of homes with price reductions is down from
last July.
- For the second month in a row, the U.S. median list price
declined slightly (-0.9% year over year) to $440,000 in July, down from $445,000 in June. The median list price is down
-2.0% from its record high of $449,000 in June
2022.
- Higher mortgage rates compared to July of last year increased
the monthly cost of financing 80% of the typical home by roughly
$346 (+17.5%) compared to a year
ago.
- Nationally, the share of homes with price reductions decreased
from 19.1% in July 2022 to 15.5% this
year. The share of price reductions remains below typical levels
seen in 2017 to 2019.
- The typical home spent 45 days on market in June, 11 days
longer than this time last year, but 12 fewer days than they
typically did in the average June 2017–2019.
- Across the 50 largest U.S. metros, in July the typical home
spent 39 days on the market, 8 days more than the previous July.
Time on market increased the most in Miami (+24 days), Austin, Texas (+20 days), San Antonio (+19 days), and Raleigh, N.C. (+19 days)
Spotlight On: A rising number of buyers are looking for homes
in other markets
With rising rates and still-high home
prices, the number of home shoppers searching for homes in areas
other than where they live continues to rise.
Realtor.com®'s Q2
Cross-Market Demand Report, also released today, found that
Western shoppers are most likely to look for out-of-market homes,
but Northeastern shoppers are catching up – that region saw the
highest growth this quarter. While home shoppers show the greatest
preference for searching for homes in nearby metros or states,
long-distance home searching sometimes pairs unexpected cities,
such as from San Francisco to
Chicago and Chicago to Dallas.
- In Q2 2023, 60.3% of all Realtor.com® listing
views from the Top 100 metros went to homes located outside the
metro areas where shoppers live, up 0.7 percentage points from Q1
2023 and 4.1 percentage points year over year.
- Regionally, Western home shoppers (67.7%) were most likely to
look for out-of-market homes in Q2, but Northeastern shoppers
(59.9%) are catching up. Northeastern shoppers saw the highest
growth in Q2, when the share of out-of-market shopping was 5.5
percentage points higher than the prior year.
- In all four regions, more than half of online shopping traffic
went to homes outside of the shoppers' metro areas. Only the
Western region had this level of outside shopping interest three
years ago.
- Chicago has been the top
out-of-state destination for home shoppers based in San Francisco for the past four quarters,
likely because of its relatively affordable housing, similar
tech/industry structure and easy access to transportation.
Similarly, Dallas serves as the
metro pair for Chicago for
shoppers seeking tech jobs, easy air transportation and warmer
weather.
- Tampa, Fla. is a metro pair
for multiple metros in New York
and Ohio, including Akron, Cincinnati and Cleveland in Ohio and Buffalo, Rochester and Syracuse in New
York. Las Vegas is urban
Honolulu's metro pair,
Phoenix is Portland, Ore.'s metro pair, and Miami is New York
City's metro pair.
"Housing affordability isn't likely to improve anytime soon, so
it's not surprising to see that Americans are on the move and
increasingly searching for homes in more affordable areas of the
country where they can stretch their housing dollars further," said
Jiayi Xu,
Realtor.com® Economist. "Sellers are much more
likely to see interest from out-of-towners than in years past, and
from where that interest is coming might be the most
surprising."
Views to Out-of-Metro Homes by Regions
|
Share of
Outbound
Views to Other Metros
(2023Q2)
|
Share of
Outbound
Views to Other Metros
(2022Q2)
|
YOY
|
Northeast
|
59.9 %
|
54.4 %
|
+5.5 ppt
|
Midwest
|
55.0 %
|
51.7 %
|
+3.3 ppt
|
South
|
58.8 %
|
54.5 %
|
+4.3 ppt
|
West
|
67.7 %
|
64.3 %
|
+3.4 ppt
|
Top 100
Metros
|
60.3 %
|
56.2 %
|
+4.1 ppt
|
July 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.
|
$435,000
|
-0.9 %
|
-0.1 %
|
-8.9 %
|
-21.1 %
|
40
|
11
|
16.4 %
|
-3.3 pp
|
Austin-Round
Rock-Georgetown, Texas
|
$575,000
|
-4.1 %
|
-3.9 %
|
15.3 %
|
-21.7 %
|
50
|
20
|
32.9 %
|
-7.6 pp
|
Baltimore-Columbia-Towson, Md.
|
$375,000
|
5.6 %
|
5.3 %
|
-24.7 %
|
-24.0 %
|
37
|
3
|
12.4 %
|
-4.3 pp
|
Birmingham-Hoover,
Ala.
|
$299,000
|
-0.2 %
|
3.5 %
|
9.8 %
|
-11.6 %
|
44
|
14
|
14.5 %
|
-1.9 pp
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$850,000
|
14.9 %
|
13.2 %
|
-26.5 %
|
-27.2 %
|
36
|
10
|
12.3 %
|
-4.6 pp
|
Buffalo-Cheektowaga,
N.Y.
|
$268,000
|
7.2 %
|
8.7 %
|
-12.5 %
|
-21.5 %
|
38
|
8
|
7.3 %
|
-1.1 pp
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$440,000
|
2.3 %
|
3.8 %
|
-16.2 %
|
-28.7 %
|
39
|
9
|
14.2 %
|
-4.8 pp
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$389,000
|
11.1 %
|
3.5 %
|
-29.2 %
|
-17.7 %
|
36
|
4
|
11.5 %
|
-4.5 pp
|
Cincinnati,
Ohio-Ky.-Ind.
|
$383,000
|
21.7 %
|
11.2 %
|
-11.1 %
|
-17.8 %
|
31
|
6
|
11.6 %
|
-1.1 pp
|
Cleveland-Elyria,
Ohio
|
$245,000
|
8.9 %
|
5.5 %
|
-20.3 %
|
-24.7 %
|
39
|
4
|
11.1 %
|
-3.5 pp
|
Columbus,
Ohio
|
$399,000
|
15.0 %
|
7.6 %
|
-11.7 %
|
-17.3 %
|
25
|
4
|
15.2 %
|
-4.1 pp
|
Dallas-Fort
Worth-Arlington, Texas
|
$470,000
|
-2.1 %
|
-2.6 %
|
8.8 %
|
-18.0 %
|
37
|
8
|
24.2 %
|
-2.4 pp
|
Denver-Aurora-Lakewood,
Colo.
|
$675,000
|
3.8 %
|
3.9 %
|
-10.8 %
|
-24.7 %
|
31
|
8
|
22.7 %
|
-7.7 pp
|
Detroit-Warren-Dearborn, Mich.
|
$269,000
|
-3.9 %
|
-0.9 %
|
-24.7 %
|
-19.2 %
|
32
|
4
|
15.5 %
|
-7.0 pp
|
Hartford-East
Hartford-Middletown, Conn.
|
$435,000
|
14.8 %
|
2.4 %
|
-33.6 %
|
-15.6 %
|
23
|
-1
|
5.1 %
|
-4.2 pp
|
Houston-The
Woodlands-Sugar Land, Texas
|
$376,000
|
-3.6 %
|
-1.4 %
|
6.9 %
|
-10.3 %
|
40
|
7
|
18.6 %
|
-3.2 pp
|
Indianapolis-Carmel-Anderson, Ind.
|
$347,000
|
6.9 %
|
5.2 %
|
0.6 %
|
-18.0 %
|
38
|
8
|
19.1 %
|
0.7 pp
|
Jacksonville,
Fla.
|
$435,000
|
1.9 %
|
0.2 %
|
10.1 %
|
-20.1 %
|
50
|
17
|
19.9 %
|
-1.4 pp
|
Kansas City,
Mo.-Kan.
|
$443,000
|
12.2 %
|
9.2 %
|
-4.2 %
|
-15.8 %
|
50
|
10
|
13.1 %
|
-0.7 pp
|
Las
Vegas-Henderson-Paradise, Nev.*
|
$460,000
|
N/A
|
N/A
|
N/A
|
-49.4 %
|
45
|
N/A
|
14.1 %
|
N/A
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$1,195,000
|
23.2 %
|
9.1 %
|
-32.1 %
|
-21.7 %
|
41
|
8
|
9.3 %
|
-9.9 pp
|
Louisville/Jefferson
County, Ky.-Ind.
|
$325,000
|
8.3 %
|
6.6 %
|
-13.3 %
|
-21.5 %
|
31
|
7
|
14.9 %
|
-3.2 pp
|
Memphis,
Tenn.-Miss.-Ark.
|
$325,000
|
1.6 %
|
1.0 %
|
33.2 %
|
-12.5 %
|
44
|
14
|
18.3 %
|
3.5 pp
|
Miami-Fort
Lauderdale-Pompano Beach, Fla.
|
$602,000
|
-2.9 %
|
3.1 %
|
6.3 %
|
-20.2 %
|
64
|
24
|
12.3 %
|
-2.5 pp
|
Milwaukee-Waukesha,
Wis.
|
$375,000
|
15.4 %
|
9.3 %
|
-24.6 %
|
-28.1 %
|
29
|
0
|
9.5 %
|
-4.1 pp
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$461,000
|
8.5 %
|
4.0 %
|
-12.8 %
|
-13.2 %
|
36
|
4
|
12.9 %
|
-0.9 pp
|
Nashville-Davidson-Murfreesboro-Franklin,
Tenn.
|
$595,000
|
8.2 %
|
2.9 %
|
22.4 %
|
-24.5 %
|
33
|
12
|
22.4 %
|
-3.1 pp
|
New Orleans-Metairie,
La.
|
$340,000
|
-0.8 %
|
0.9 %
|
39.6 %
|
-9.9 %
|
60
|
18
|
19.5 %
|
-2.7 pp
|
New York-Newark-Jersey
City, N.Y.-N.J.-Pa.
|
$738,000
|
11.9 %
|
18.7 %
|
-19.3 %
|
-22.4 %
|
54
|
10
|
7.9 %
|
-3.0 pp
|
Oklahoma City,
Okla.
|
$347,000
|
10.2 %
|
2.5 %
|
10.9 %
|
-10.1 %
|
43
|
6
|
19.3 %
|
4.1 pp
|
Orlando-Kissimmee-Sanford, Fla.
|
$460,000
|
-0.9 %
|
0.1 %
|
-6.6 %
|
-22.8 %
|
46
|
16
|
17.6 %
|
-3.8 pp
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$350,000
|
1.4 %
|
3.3 %
|
-22.7 %
|
-14.9 %
|
45
|
7
|
11.4 %
|
-3.9 pp
|
Phoenix-Mesa-Chandler,
Ariz.
|
$540,000
|
2.8 %
|
-3.0 %
|
-42.4 %
|
-44.3 %
|
45
|
15
|
18.6 %
|
-23.1 pp
|
Pittsburgh,
Pa.
|
$249,000
|
3.8 %
|
-2.1 %
|
-8.7 %
|
-11.3 %
|
47
|
8
|
15.2 %
|
-0.5 pp
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$640,000
|
6.8 %
|
0.5 %
|
-6.0 %
|
-22.1 %
|
38
|
8
|
17.9 %
|
-10.2 pp
|
Providence-Warwick,
R.I.-Mass.
|
$550,000
|
14.6 %
|
1.4 %
|
-32.8 %
|
-24.1 %
|
35
|
6
|
6.9 %
|
-4.6 pp
|
Raleigh-Cary,
N.C.
|
$470,000
|
-5.1 %
|
-2.0 %
|
-7.1 %
|
-22.1 %
|
42
|
19
|
12.6 %
|
-8.3 pp
|
Richmond,
Va.
|
$439,000
|
12.6 %
|
8.7 %
|
-10.6 %
|
-23.6 %
|
43
|
7
|
7.7 %
|
-1.8 pp
|
Riverside-San
Bernardino-Ontario, Calif.
|
$585,000
|
-1.8 %
|
1.1 %
|
-30.5 %
|
-25.0 %
|
45
|
9
|
12.9 %
|
-10.6 pp
|
Rochester,
N.Y.
|
$259,000
|
10.5 %
|
8.2 %
|
-12.5 %
|
-4.4 %
|
15
|
-1
|
8.8 %
|
-2.9 pp
|
Sacramento-Roseville-Folsom, Calif.
|
$677,000
|
7.5 %
|
-1.1 %
|
-40.1 %
|
-22.9 %
|
36
|
4
|
14.0 %
|
-16.7 pp
|
San Antonio-New
Braunfels, Texas
|
$365,000
|
-3.9 %
|
-1.2 %
|
34.5 %
|
-17.4 %
|
50
|
19
|
23.6 %
|
3.7 pp
|
San Diego-Chula
Vista-Carlsbad, Calif.
|
$1,098,000
|
22.0 %
|
10.1 %
|
-46.2 %
|
-28.9 %
|
31
|
1
|
10.6 %
|
-15.7 pp
|
San
Francisco-Oakland-Berkeley, Calif.
|
$1,100,000
|
0.2 %
|
-0.7 %
|
-35.3 %
|
-24.7 %
|
34
|
4
|
10.6 %
|
-7.6 pp
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$1,498,000
|
7.0 %
|
0.2 %
|
-52.0 %
|
-35.3 %
|
30
|
1
|
9.3 %
|
-11.3 pp
|
Seattle-Tacoma-Bellevue, Wash.
|
$815,000
|
3.2 %
|
5.3 %
|
-38.7 %
|
-38.4 %
|
33
|
5
|
13.7 %
|
-9.7 pp
|
St. Louis,
Mo.-Ill.
|
$289,000
|
5.1 %
|
4.5 %
|
-7.6 %
|
-11.8 %
|
38
|
3
|
11.0 %
|
-2.8 pp
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$449,000
|
0.9 %
|
2.2 %
|
-3.5 %
|
-27.3 %
|
46
|
17
|
21.0 %
|
-5.6 pp
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$395,000
|
12.8 %
|
6.8 %
|
-16.2 %
|
-24.2 %
|
33
|
7
|
13.1 %
|
-3.9 pp
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$635,000
|
9.5 %
|
6.8 %
|
-31.5 %
|
-25.7 %
|
34
|
3
|
10.9 %
|
-6.2 pp
|
|
*Some Las Vegas listing
metrics have been excluded while data is under review.
|
Methodology
Realtor.com®
housing data as of July 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®. With the release of its
May 2023 Housing Report,
Realtor.com® incorporated a new and improved
methodology for capturing and reporting housing inventory trends
and metrics. As a result of these changes, this release is not
directly comparable with previous data releases and reports.
However, future data releases, including historical data, will
consistently apply the new methodology.
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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