Inventory is predicted to hit positive
territory year-over-year in June or July and provide some much
needed relief for buyers who can afford to persist in their search
for a home
SANTA
CLARA, Calif., March 31,
2022 /PRNewswire/ -- Home prices hit $405,000 for the first time ever in March, but
data reveals there is some hope on the horizon for pandemic-era
buyers. With demand beginning to moderate as some home shoppers are
priced out of the market and new construction at near 16-year
highs, inventory is expected to hit positive territory
year-over-year this summer, according to the
Realtor.com® Monthly Housing Trends Report released
today.
"Despite the $405,000 price tag,
March data reveals we are starting to take some steps towards a
more balanced market," said Danielle
Hale, Chief Economist for Realtor.com®. "Buyer
demand is moderating in the face of high costs, and we're beginning
to see more homeowners take price cuts on their listings and
overall inventory declines lessen in response. Assuming all these
factors and new construction hold steady, we could begin to
see inventory increases this summer – welcome news for buyers who
have endured pandemic home shopping and can continue their journey
despite higher buying costs. For buyers currently in the market,
there's good reason to aim to find a home before interest rates
increase further. But if it takes longer than a few months, don't
give up hope, as there may be more to choose from in the
summer months."
March 2022 Housing Metrics
– National
Metric
|
Change over
March 2021
|
Change over
March 2020
|
Median Listing
Price
|
13.5% (to
$405,000)
|
26.5%
|
Active
Listings
|
-18.9%
|
-62.3%
|
New
listings
|
-3.4%
|
-11.1%
|
Median Days on
Market
|
-11 (to 38
days)
|
-21
|
Home prices hit $405,000 with
an increase in price reductions
The median U.S. listing price grew to a new all-time high of
$405,000 in March as prices rose
13.5% year-over-year, faster than is typical for this time of year,
and about the same annual growth rate as last month. At the same
time, data shows the beginnings of softening demand and sellers
responding to it. The share of homes having their price reduced
increased slightly from 5.8% last March to 6.0% this year, but
still remains 9 percentage points below typical 2017 to 2019
levels. Twenty-five of the largest 50 metros saw an increasing
share of price reductions in March, compared to 18 in February.
Listing prices in the top 50 metros grew by an average of 9.1%
in March over last year. Their price growth has been lower than
other areas across the country, but much of this can still be
attributed to new inventory bringing relatively smaller homes to
the market this year. The median listing price per square foot in
these large metros grew by 12.5% over the same period, not as high
as, but close to, the national rate of 15.7%. Miami (+37.0%), Las
Vegas (+35.2%), and Tampa,
Fla. (+32.0%) posted the highest year-over-year median list
price growth in March. Austin,
Texas homes showed the greatest growth in the share of homes
with price reductions compared to last year (+2.9 percentage
points), followed by Sacramento,
Calif. and Memphis, Tenn.
(+2.3 percentage points).
Inventory declines lessen as some buyers are priced
out
Nationally, the inventory of homes actively for sale on a
typical day in March decreased by 18.9% over last year, a smaller
rate of decline compared to the 24.5% drop in February. However,
this moderation in active inventory is not a supply-driven
improvement. In March, newly-listed homes decreased by 3.4%
year-over-year and sellers were still listing at rates 12.2% lower
than typical 2017-2019 March levels. The number of pending listings
(listings that are at various stages of the closing process, but
are not yet sold) has declined by 7.4% compared to last March,
indicating that a moderation in demand is softening the rate of
home sales. This is likely caused by the affordability
one-two-punch of rising interest rates and all-time high
listing prices. For buyers still actively searching for a home,
this could provide some relief as competition declines. However, it
indicates that some homebuyers may have put plans on hold, despite
the fact that the current rental market offers little relief from
high prices.
The inventory of homes actively for sale in the 50 largest U.S.
metros overall decreased by 16.0% year-over-year in March, an
improvement in the rate of decline compared to last month's 22.1%
decrease. Inventory declined over March
2021 in 44 out of 50 of the largest metros, but six metros
saw inventory growth, up from four last month: Riverside, Calif. (+17.8%), Sacramento (+7.6%), Kansas City (+6.0%), Austin (+3.9%), Detroit (+3.5%), and Phoenix (+0.4%). Eight metros also saw the
number of newly-listed homes increase compared to last year, led by
Rochester, N.Y. (+7.2%),
Detroit (+6.7%), and Memphis (+5.4%).
Homes Consistently Spend Less Time on the Market Than
Previous Years
The typical home spent 38 days on the market this March, which
is 11 days less than last year. Homes spent 29 fewer days on the
market than typical March 2017-2019 timing. However, while homes
are selling more quickly than last year, the gap has been shrinking
as demand moderates. Last month, homes spent 17 days less on the
market than the previous year. In March, the gap narrowed down to
11 days.
In the 50 largest U.S. metros, the typical home spent 31 days on
the market, and homes spent 8 fewer days on the market, on average,
compared to March 2021. Among larger
metropolitan areas, homes saw the greatest yearly decline in time
spent on market in the southern metros of Miami (-32 days), Raleigh, S.C. (-19 days), and Orlando, Fla. (-19 days). Only Buffalo, N.Y. saw time on market increase
compared to last year (+2 days).
March 2022 Housing Metrics – 50
Largest U.S. Metros
Metro
|
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 YoY
|
Price Reduced
Share
|
Price Reduced Share
YoY
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$399,000
|
8.9%
|
11.7%
|
-11.4%
|
-8.6%
|
33
|
-5
|
5.8%
|
0.5%
|
Austin-Round Rock,
Texas
|
$600,000
|
30.0%
|
29.1%
|
2.9%
|
-13.5%
|
17
|
-18
|
5.3%
|
2.9%
|
Baltimore-Columbia-Towson, Md.
|
$325,000
|
0.0%
|
6.7%
|
-6.7%
|
-6.3%
|
33
|
-5
|
7.6%
|
1.7%
|
Birmingham-Hoover,
Ala.
|
$259,000
|
-2.2%
|
8.8%
|
-15.3%
|
1.2%
|
37
|
-9
|
6.7%
|
1.9%
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$755,000
|
10.7%
|
13.2%
|
-27.5%
|
-13.9%
|
21
|
-4
|
5.4%
|
-0.6%
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
$225,000
|
-7.2%
|
5.1%
|
-12.6%
|
-4.7%
|
49
|
2
|
3.0%
|
0.4%
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$410,000
|
8.5%
|
15.5%
|
-18.8%
|
-8.8%
|
20
|
-14
|
6.5%
|
0.1%
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$337,000
|
-3.7%
|
-1.0%
|
-24.0%
|
-12.6%
|
35
|
-8
|
6.1%
|
-0.3%
|
Cincinnati,
Ohio-Ky.-Ind.
|
$329,000
|
-2.5%
|
11.1%
|
-19.0%
|
-1.0%
|
46
|
-2
|
4.2%
|
-0.6%
|
Cleveland-Elyria,
Ohio
|
$190,000
|
-8.5%
|
2.0%
|
-5.8%
|
-2.1%
|
45
|
-3
|
6.2%
|
0.1%
|
Columbus,
Ohio
|
$329,000
|
5.7%
|
12.4%
|
-1.4%
|
-9.9%
|
18
|
-10
|
5.6%
|
0.1%
|
Dallas-Fort
Worth-Arlington, Texas
|
$425,000
|
17.6%
|
18.4%
|
-21.0%
|
-3.4%
|
28
|
-13
|
4.2%
|
-0.2%
|
Denver-Aurora-Lakewood,
Colo.
|
$663,000
|
18.8%
|
8.2%
|
-18.8%
|
-9.4%
|
9
|
-7
|
3.6%
|
-0.2%
|
Detroit-Warren-Dearborn, Mich.
|
$229,000
|
-15.4%
|
-0.3%
|
3.6%
|
6.7%
|
29
|
-5
|
9.5%
|
1.8%
|
Hartford-West
Hartford-East Hartford, Conn.
|
$355,000
|
18.2%
|
24.1%
|
N/A
|
-17.0%
|
33
|
-6
|
4.1%
|
-1.7%
|
Houston-The
Woodlands-Sugar Land, Texas
|
$374,000
|
9.5%
|
13.7%
|
-17.2%
|
-1.3%
|
39
|
-12
|
7.5%
|
-0.2%
|
Indianapolis-Carmel-Anderson, Ind.
|
$299,000
|
10.0%
|
13.7%
|
-18.8%
|
-1.6%
|
37
|
-9
|
6.9%
|
0.1%
|
Jacksonville,
Fla.
|
$406,000
|
21.5%
|
22.6%
|
-20.5%
|
-8.6%
|
38
|
-6
|
4.5%
|
-0.5%
|
Kansas City,
Mo.-Kan.
|
$390,000
|
11.4%
|
13.8%
|
6.7%
|
-2.4%
|
48
|
-3
|
3.6%
|
0.5%
|
Las
Vegas-Henderson-Paradise, Nev.
|
$480,000
|
35.2%
|
27.5%
|
-17.4%
|
-1.0%
|
23
|
-8
|
9.2%
|
1.7%
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$950,000
|
-5.0%
|
2.7%
|
-27.0%
|
-13.1%
|
28
|
-5
|
4.3%
|
-0.9%
|
Louisville/Jefferson
County, Ky.-Ind.
|
$290,000
|
9.6%
|
11.0%
|
-6.1%
|
-1.3%
|
30
|
-4
|
7.1%
|
0.3%
|
Memphis,
Tenn.-Miss.-Ark.
|
$227,000
|
-4.6%
|
11.6%
|
-0.2%
|
5.4%
|
39
|
-10
|
6.5%
|
2.3%
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$547,000
|
37.0%
|
25.0%
|
-51.5%
|
-12.1%
|
43
|
-33
|
4.6%
|
-1.8%
|
Milwaukee-Waukesha-West
Allis, Wis.
|
$295,000
|
-2.5%
|
3.4%
|
-4.7%
|
-7.1%
|
40
|
-6
|
5.6%
|
0.6%
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$415,000
|
12.2%
|
-2.3%
|
-17.2%
|
0.7%
|
32
|
-4
|
3.7%
|
-0.5%
|
Nashville-Davidson--Murfreesboro--Franklin,
Tenn.
|
$500,000
|
25.0%
|
20.4%
|
-30.2%
|
-6.4%
|
14
|
-9
|
6.5%
|
0.8%
|
New Orleans-Metairie,
La.
|
$350,000
|
3.0%
|
2.7%
|
-21.9%
|
5.1%
|
46
|
-8
|
10.0%
|
0.4%
|
New York-Newark-Jersey
City, N.Y.-N.J.-Pa.
|
$699,000
|
7.8%
|
30.9%
|
-8.1%
|
3.8%
|
47
|
-13
|
6.3%
|
-0.6%
|
Oklahoma City,
Okla.
|
$345,000
|
18.9%
|
18.1%
|
-19.2%
|
N/A*
|
39
|
-8
|
6.1%
|
-0.5%
|
Orlando-Kissimmee-Sanford, Fla.
|
$413,000
|
27.9%
|
27.7%
|
-38.2%
|
-1.2%
|
32
|
-19
|
5.1%
|
-1.1%
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$315,000
|
-3.1%
|
4.4%
|
-5.2%
|
3.2%
|
38
|
-10
|
7.5%
|
0.1%
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$502,000
|
19.4%
|
22.8%
|
2.4%
|
-5.1%
|
30
|
-2
|
6.4%
|
1.4%
|
Pittsburgh,
Pa.
|
$223,000
|
-13.7%
|
-4.8%
|
-7.4%
|
-6.8%
|
61
|
0
|
7.9%
|
0.8%
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$575,000
|
11.6%
|
14.4%
|
-11.9%
|
-3.9%
|
30
|
-6
|
9.7%
|
0.3%
|
Providence-Warwick,
R.I.-Mass.
|
$437,000
|
9.3%
|
13.0%
|
-24.6%
|
-14.7%
|
34
|
-9
|
3.8%
|
0.0%
|
Raleigh,
N.C.
|
$449,000
|
12.5%
|
21.9%
|
-47.9%
|
-17.6%
|
11
|
-19
|
3.3%
|
-1.6%
|
Richmond,
Va.
|
$360,000
|
-3.4%
|
8.6%
|
-31.1%
|
-10.4%
|
34
|
-11
|
2.8%
|
-0.8%
|
Riverside-San
Bernardino-Ontario, Calif.
|
$573,000
|
14.6%
|
17.6%
|
17.8%
|
0.3%
|
24
|
-1
|
5.5%
|
2.0%
|
Rochester,
N.Y.
|
$220,000
|
-17.0%
|
-2.4%
|
-18.6%
|
7.2%
|
12
|
-10
|
5.0%
|
-0.4%
|
Sacramento--Roseville--Arden-Arcade,
Calif.
|
$634,000
|
15.9%
|
16.0%
|
8.2%
|
-2.1%
|
23
|
-5
|
6.8%
|
2.3%
|
San Antonio-New
Braunfels, Texas
|
$357,000
|
15.4%
|
18.4%
|
-9.4%
|
-0.7%
|
39
|
-9
|
5.4%
|
0.9%
|
San Diego-Carlsbad,
Calif.
|
$884,000
|
10.5%
|
10.3%
|
-24.9%
|
-6.4%
|
23
|
-7
|
3.8%
|
-1.1%
|
San
Francisco-Oakland-Hayward, Calif.
|
$1,044,000
|
2.2%
|
4.9%
|
-10.7%
|
-3.9%
|
23
|
-6
|
4.4%
|
0.3%
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$1,399,000
|
13.5%
|
10.7%
|
-34.6%
|
-10.6%
|
17
|
-9
|
2.6%
|
-3.3%
|
Seattle-Tacoma-Bellevue, Wash.
|
$755,000
|
16.2%
|
7.7%
|
-27.7%
|
-14.5%
|
23
|
-8
|
2.8%
|
-0.7%
|
St. Louis,
Mo.-Ill.
|
$275,000
|
6.0%
|
7.7%
|
-17.7%
|
-9.1%
|
45
|
-15
|
5.0%
|
-0.9%
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$399,000
|
32.0%
|
29.5%
|
-22.0%
|
-6.0%
|
32
|
-8
|
5.3%
|
-0.6%
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$337,000
|
8.7%
|
10.6%
|
-34.2%
|
-20.8%
|
20
|
-8
|
5.4%
|
-0.9%
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$545,000
|
10.1%
|
4.1%
|
-16.8%
|
-12.6%
|
28
|
-4
|
5.6%
|
-0.2%
|
Methodology
Realtor.com® housing data as of
March 2022. Listings include active
inventory of existing single-family homes and condos/townhomes for
the given level of geography; new construction is excluded unless
listed via an MLS. *Oklahoma
City's March new listings data is currently under
review.
Note: With the release of its January 2022 housing trends 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.
About Realtor.com®
Realtor.com®
makes buying, selling, renting and living in homes easier and more
rewarding for everyone. Realtor.com® pioneered the world
of digital real estate more than 25 years ago, and today through
its website and mobile apps offers a marketplace where people can
learn about their options, trust in the transparency of information
provided to them, and get services and resources that are
personalized to their needs. Using proprietary data science and
machine learning technology, Realtor.com® pairs buyers
and sellers with local agents in their market, helping take the
guesswork out of buying and selling a home. For professionals,
Realtor.com® is a trusted provider of 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
rachel.conner@move.com
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