In August, active inventory shrank compared to
last year (-7.9%), despite an unusual increase from July in newly
listed homes, signaling a potential return of seller activity
heading into fall
SANTA
CLARA, Calif., Aug. 31,
2023 /PRNewswire/ -- Following two months of
year-over-year declines, home prices rose in August (+0.7%) as the
number of homes on the market decreased for the second month in a
row, down -7.9% year-over-year, according to the
Realtor.com® August Monthly Housing Trends Report
released today. Active inventory remained -47.8% below typical 2017
to 2019 levels, although an unseasonable increase in newly listed
homes from July to August (+3.5%) this year provides more options
for home shoppers as the fall buying season approaches.
"While the uptick in new listings is good news for home
shoppers, inventory remains persistently low, even with record-high
mortgage rates putting a damper on demand," said Danielle Hale, Chief Economist for
Realtor.com®. "The inventory crunch continues to put
upward pressure on home prices, amplifying affordability concerns
and shutting some potential buyers out of the market. However, we
anticipate mortgage rates will gradually ease through the end of
the year and, despite this month's bump in home prices, we'll be
unlikely to see a new price peak this year."
What it means for homebuyers, sellers, and the housing
market
Although home sellers were less active in August
compared to last year, the increase in newly listed homes for sale
from July to August creates a nice boost for shoppers heading into
fall, which is typically the best time to buy a home. Homeowners
who have been on the fence about selling will likely find eager
buyers looking for fresh listings.
"As fall buying activity heats up, the newly available homes for
sale aren't likely to remain on the market long, so sellers and
hopeful homebuyers will need to be prepared to move quickly," said
Realtor.com® Executive News Editor Clare Trapasso. "Home shoppers can save searches
on Realtor.com® to receive real-time alerts, receive
mortgage pre-approvals, and pore over their budgets to determine
what they can realistically afford with today's higher mortgage
rates."
Affordability remains a significant concern. Although sales of
new homes are on the rise, construction activity isn't sufficiently
robust to offset the inventory shortage and ease prices, which are
up nearly 38% from August 2019
levels. Additionally, elevated mortgage rates have raised the
monthly financing cost of the average home by about $417, up 21.7% from August
2022. This greatly exceeds both wage growth (4.4%) and
inflation (3.2%).
August 2023 Housing Metrics –
National
Metric
|
Change over Aug
2022
|
Change over Aug
2019
|
Median listing
price
|
+0.7% (to
$435,000)
|
+37.9 %
|
Active
listings
|
-7.9 %
|
-45.8 %
|
New listings
|
-7.5 %
|
-19.3 %
|
Median days on
market
|
+5 days (to 46
days)
|
-13 days
|
Share of active
listings with price
reductions
|
-3.1 percentage
points
(to 16.2%)
|
-1.4 percentage
points
|
Year over year home prices rise in August after two months of
annual declines
In August, national home listing prices rose
slightly compared to last year, ending a two-month streak of
year-over-year price declines in June and July, buoyed by a scarce
inventory of homes for sale across the country. Despite listing
prices being slightly higher than in August of last year, the
median list price is unlikely to surpass last year's record
peak of $449,000 in June 2022 as we head into the fall months and
when home prices typically see a slight seasonal decline.
- The U.S. median list price fell to $435,000 in August, down from $440,000 in July, but is up slightly (+0.7%) from
August of last year.
- While all regions saw listing prices in larger metros increase
on average, Northeastern metros had the highest growth rate in
active listing prices, with an average increase of 9.7% over the
past year.
- Among the 50 largest U.S. metros, only 7 saw their median list
price decline compared with this time last year, down from 12 last
month. The greatest year-over-year price declines were seen in
Raleigh (-4.6%) and Las Vegas (-2.8%). Larger southern metros saw
the lowest listing price growth rate among the regions
(3.2%).
- Nationally, the share of homes with price reductions decreased
from 19.3% in August of last year to 16.2% this year, and remains
below typical levels seen in 2017 to 2019.
- Among the 50 largest metros, the largest increases in the
percentage of homes with price reductions compared to last year
were in San Antonio (+3.9
percentage points), Memphis
(+3.7), and Oklahoma City
(+1.9).
Newly listed homes improve from July, but inventory crunch
continues
While the market saw an unusual bump in newly
listed homes for sale between July and August this year, the
overall number of homes actively for sale shrank for the second
consecutive month, reversing the consistent growth trajectory seen
since April 2022. Some of this drop
can be attributed to an off-season surge in inventory during a
market slowdown last summer. Although active inventory still
remains below typical pre-pandemic levels seen between 2017 and
2019, the modest rise in new homes listed for sale this summer
could give buyers grappling with affordability issues more
options.
- Nationally, active inventory shrank -7.9% year over year in
August compared to last year. On average, active inventory in
August was -47.8% below typical 2017–2019 levels.
- Pending listings, or homes under contract, declined by 11.5%
compared to the same time last year, which is slightly smaller than
July's 12.6% decline and much improved from December's peak decline
(-36.9% year over year).
- Newly listed homes were 7.5% below last year's levels, but this
rate of decline is much improved from a decline of 20.8% in July.
Newly listed homes increased by 3.5% from July to August.
- In all regions, the inventory of homes actively for sale was
down 30%–60% from pre-pandemic levels. Inventory declined least in
the South, by 1.5% compared to the same time last year, followed by
a decline of 13.5% in the Midwest, 19.3% in the Northeast, and
31.5% in the West.
- In August, only Milwaukee
(+6.8%) and Jacksonville (+4.0%)
saw new listings increase over the same time last year. Declines in
new listings were greatest in Nashville (-27.2%) Cincinnati (-25.0%) and Seattle (-24.7%).
As inventory shrinks, homes in several large markets sell
faster compared to last year
The time homes spend on the
market is approaching last year's quicker figures, with buyers
again vying for fewer available options than the prior year in most
parts of the country. Should this pattern continue, by the coming
month homes in every region except the South are likely to sell
faster than they did during the same period last year.
- In August, the typical home spent 46 days on the market, 5 days
longer than this time last year, but 13 fewer days than they did on
average from August 2017–2019.
- Time on market increased in August compared to last year in 35
of the 50 largest metro areas. Larger metros in the South saw the
greatest increase (+6 days), followed by the Northeast (+2 days),
Midwest (+1 day) and West (+0 days).
- At the market level, time on market increased the most in
Austin and New Orleans (+15 days), as well as in
Miami (+13 days).
August 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.
|
$430,000
|
1.2 %
|
1.2 %
|
-13.8 %
|
-18.0 %
|
41
|
5
|
18.3 %
|
-3.3 pp
|
Austin-Round
Rock-Georgetown, Texas
|
$568,000
|
-1.2 %
|
-2.0 %
|
4.7 %
|
-17.1 %
|
55
|
15
|
35.5 %
|
-4.6 pp
|
Baltimore-Columbia-Towson, Md.
|
$377,000
|
7.8 %
|
4.8 %
|
-25.0 %
|
-13.7 %
|
37
|
1
|
13.0 %
|
-3.2 pp
|
Birmingham-Hoover,
Ala.
|
$297,000
|
4.0 %
|
4.7 %
|
10.5 %
|
-11.0 %
|
44
|
8
|
16.7 %
|
-0.2 pp
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$844,000
|
16.4 %
|
13.1 %
|
-21.3 %
|
-11.0 %
|
37
|
3
|
12.8 %
|
-3.5 pp
|
Buffalo-Cheektowaga,
N.Y.
|
$260,000
|
6.0 %
|
7.5 %
|
-16.8 %
|
-5.4 %
|
39
|
3
|
7.8 %
|
-1.5 pp
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$430,000
|
1.1 %
|
4.9 %
|
-19.0 %
|
-18.9 %
|
38
|
2
|
15.2 %
|
-5.5 pp
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$385,000
|
10.0 %
|
5.2 %
|
-27.6 %
|
-10.5 %
|
36
|
-1
|
12.1 %
|
-4.3 pp
|
Cincinnati,
Ohio-Ky.-Ind.
|
$375,000
|
16.3 %
|
8.9 %
|
-6.9 %
|
-25.0 %
|
32
|
2
|
10.0 %
|
-3.8 pp
|
Cleveland-Elyria,
Ohio
|
$250,000
|
11.1 %
|
6.9 %
|
-24.2 %
|
-12.1 %
|
39
|
0
|
14.3 %
|
-2.1 pp
|
Columbus,
Ohio
|
$386,000
|
14.6 %
|
7.9 %
|
-9.5 %
|
-19.0 %
|
26
|
-1
|
19.5 %
|
1.0 pp
|
Dallas-Fort
Worth-Arlington, Texas
|
$464,000
|
0.4 %
|
-1.2 %
|
2.4 %
|
-13.4 %
|
42
|
7
|
24.8 %
|
-1.6 pp
|
Denver-Aurora-Lakewood,
Colo.
|
$660,000
|
3.7 %
|
4.9 %
|
-9.1 %
|
-9.7 %
|
35
|
4
|
23.9 %
|
-7.0 pp
|
Detroit-Warren-Dearborn, Mich.
|
$272,000
|
0.0 %
|
1.2 %
|
-24.5 %
|
-15.9 %
|
36
|
4
|
14.1 %
|
-9.3 pp
|
Hartford-East
Hartford-Middletown, Conn.
|
$400,000
|
7.0 %
|
6.9 %
|
-28.6 %
|
-14.5 %
|
37
|
5
|
7.0 %
|
-2.4 pp
|
Houston-The
Woodlands-Sugar Land, Texas
|
$375,000
|
-2.0 %
|
-0.8 %
|
0.0 %
|
-9.4 %
|
42
|
4
|
19.7 %
|
-3.0 pp
|
Indianapolis-Carmel-Anderson, Ind.
|
$337,000
|
8.0 %
|
5.7 %
|
0.3 %
|
-8.4 %
|
36
|
1
|
21.9 %
|
1.7 pp
|
Jacksonville,
Fla.
|
$428,000
|
1.8 %
|
0.8 %
|
-3.7 %
|
4.0 %
|
49
|
9
|
21.9 %
|
-2.6 pp
|
Kansas City,
Mo.-Kan.
|
$435,000
|
12.3 %
|
7.7 %
|
-4.1 %
|
-11.9 %
|
50
|
4
|
15.6 %
|
1.3 pp
|
Las
Vegas-Henderson-Paradise, Nev.*
|
$457,000
|
N/A
|
N/A
|
N/A
|
N/A
|
43
|
N/A
|
15.4 %
|
N/A
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$1,163,000
|
22.4 %
|
8.8 %
|
-30.2 %
|
-17.8 %
|
41
|
1
|
10.5 %
|
-8.5 pp
|
Louisville/Jefferson
County, Ky.-Ind.
|
$323,000
|
7.5 %
|
5.1 %
|
-13.5 %
|
-11.5 %
|
32
|
1
|
16.6 %
|
-3.0 pp
|
Memphis,
Tenn.-Miss.-Ark.
|
$321,000
|
2.5 %
|
3.0 %
|
30.7 %
|
-4.9 %
|
46
|
8
|
20.4 %
|
3.7 pp
|
Miami-Fort
Lauderdale-Pompano Beach, Fla.
|
$600,000
|
-0.7 %
|
4.1 %
|
0.1 %
|
-7.7 %
|
62
|
13
|
12.3 %
|
-2.4 pp
|
Milwaukee-Waukesha,
Wis.
|
$353,000
|
6.0 %
|
8.8 %
|
-20.9 %
|
6.8 %
|
29
|
-3
|
13.2 %
|
-0.7 pp
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$452,000
|
7.7 %
|
3.5 %
|
-11.1 %
|
-6.6 %
|
37
|
0
|
14.0 %
|
-2.5 pp
|
Nashville-Davidson-Murfreesboro-Franklin,
Tenn.
|
$583,000
|
9.1 %
|
4.4 %
|
12.6 %
|
-27.2 %
|
37
|
11
|
22.7 %
|
-4.2 pp
|
New Orleans-Metairie,
La.
|
$339,000
|
1.7 %
|
0.9 %
|
29.2 %
|
-8.3 %
|
64
|
15
|
21.7 %
|
-1.2 pp
|
New York-Newark-Jersey
City, N.Y.-N.J.-Pa.
|
$717,000
|
10.3 %
|
15.4 %
|
-18.4 %
|
-13.5 %
|
59
|
5
|
7.6 %
|
-2.1 pp
|
Oklahoma City,
Okla.
|
$340,000
|
6.7 %
|
1.8 %
|
7.7 %
|
-1.4 %
|
43
|
3
|
20.7 %
|
1.9 pp
|
Orlando-Kissimmee-Sanford, Fla.
|
$459,000
|
1.3 %
|
1.0 %
|
-8.8 %
|
-10.3 %
|
46
|
7
|
18.9 %
|
-2.6 pp
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$350,000
|
3.1 %
|
4.9 %
|
-20.6 %
|
-11.8 %
|
45
|
1
|
12.3 %
|
-1.7 pp
|
Phoenix-Mesa-Chandler,
Ariz.
|
$538,000
|
7.6 %
|
-1.2 %
|
-46.9 %
|
N/A
|
45
|
8
|
20.8 %
|
-21.6 pp
|
Pittsburgh,
Pa.
|
$250,000
|
7.5 %
|
0.6 %
|
-10.5 %
|
-8.4 %
|
48
|
5
|
15.9 %
|
-3.1 pp
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$638,000
|
8.1 %
|
1.3 %
|
-5.4 %
|
-11.9 %
|
41
|
5
|
18.8 %
|
-10.5 pp
|
Providence-Warwick,
R.I.-Mass.
|
$550,000
|
15.8 %
|
1.2 %
|
-26.6 %
|
-10.8 %
|
30
|
-3
|
7.8 %
|
-4.1 pp
|
Raleigh-Cary,
N.C.
|
$465,000
|
-4.6 %
|
-1.0 %
|
-15.9 %
|
-20.4 %
|
40
|
10
|
14.1 %
|
-8.7 pp
|
Richmond,
Va.
|
$438,000
|
13.5 %
|
7.0 %
|
-5.9 %
|
-7.4 %
|
39
|
1
|
9.4 %
|
-1.1 pp
|
Riverside-San
Bernardino-Ontario, Calif.
|
$575,000
|
-1.8 %
|
2.6 %
|
-30.1 %
|
-19.5 %
|
47
|
3
|
14.6 %
|
-8.7 pp
|
Rochester,
N.Y.
|
$250,000
|
11.1 %
|
9.3 %
|
-11.5 %
|
-3.0 %
|
16
|
-7
|
9.3 %
|
-1.7 pp
|
Sacramento-Roseville-Folsom, Calif.
|
$672,000
|
9.4 %
|
1.3 %
|
-39.3 %
|
-24.2 %
|
37
|
-2
|
16.2 %
|
-13.5 pp
|
San Antonio-New
Braunfels, Texas
|
$357,000
|
-1.6 %
|
0.1 %
|
18.4 %
|
-16.2 %
|
51
|
12
|
27.3 %
|
3.9 pp
|
San Diego-Chula
Vista-Carlsbad, Calif.
|
$1,099,000
|
22.6 %
|
12.0 %
|
-44.6 %
|
-17.4 %
|
33
|
-3
|
11.8 %
|
-12.2 pp
|
San
Francisco-Oakland-Berkeley, Calif.
|
$1,049,000
|
0.6 %
|
-0.6 %
|
-31.4 %
|
-20.0 %
|
33
|
-3
|
10.7 %
|
-6.9 pp
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$1,474,000
|
6.3 %
|
1.6 %
|
-42.6 %
|
-4.3 %
|
27
|
-10
|
9.8 %
|
-8.4 pp
|
Seattle-Tacoma-Bellevue, Wash.
|
$799,000
|
3.2 %
|
6.6 %
|
-35.3 %
|
-24.7 %
|
33
|
-1
|
14.9 %
|
-7.4 pp
|
St. Louis,
Mo.-Ill.
|
$284,000
|
2.7 %
|
2.4 %
|
-6.4 %
|
-2.5 %
|
37
|
0
|
13.1 %
|
-1.3 pp
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$443,000
|
1.2 %
|
3.6 %
|
-9.8 %
|
-10.3 %
|
44
|
7
|
22.1 %
|
-5.4 pp
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$384,000
|
9.6 %
|
6.8 %
|
-1.2 %
|
-19.0 %
|
31
|
-2
|
16.2 %
|
-0.7 pp
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$615,000
|
7.9 %
|
6.8 %
|
-31.1 %
|
-13.6 %
|
35
|
-1
|
11.6 %
|
-5.4 pp
|
*Some Las Vegas and
Phoenix listing metrics have been excluded while data is under
review.
|
Methodology
Realtor.com® housing data as of
August 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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is an open real estate marketplace built for everyone.
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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
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Realtor.com® is a trusted partner for business growth,
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subsidiary Move, Inc. For more information, visit
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