Price growth eases to high single-digit
territory in December
SANTA
CLARA, Calif., Jan. 12,
2023 /PRNewswire/ -- The U.S. housing market
continued to show signs of normalizing in December, with inventory
and time on market increasing and listing price growth moderating,
according to the Realtor.com® Monthly Housing
Trends Report released today. After the frenzy of the past two
years, this suggests good news for homebuyers in the new year with
more options and more time to make a decision.
"In December, we saw both buyers and sellers pulling back as
they continue to adjust to a challenging market. Buyers started
2022 facing high home prices and limited inventories, and ended the
year with interest rates roughly double where they started. Despite
significant cooling in sales in 2022, some indicators remain in
high gear. Prices are still significantly higher and homes are
selling faster compared to 2019 pre-pandemic levels," said
Danielle Hale, Chief Economist for
Realtor.com®. "Although demand has softened compared to
last year, pushing home price growth into single-digit territory
for the first time in 12 months, moderation in home price growth
may encourage more buyers to return to the market in the months
ahead, and may also be welcome news for sellers aiming to sell and
buy at the same time. Affordability will remain a challenge and
buyers will want to keep a close eye on their potential mortgage
payment – a mortgage calculator is a great way to do this."
December 2022 Housing Metrics –
National
Metric
|
Change over Dec.
2021
|
Change over Dec.
2019
|
Median listing
price
|
8.4% (to
$400,000)
|
33.4 %
|
Active
listings
|
54.7 %
|
-33.4 %
|
New listings
|
-21.0 %
|
-17.7 %
|
Median days on
market
|
11 days (to 67
days)
|
-16 days
|
Share of active
listings with
price reductions
|
6.5 percentage
points
(to 13.6%)
|
3.3 percentage
points
(from 10.3%)
|
Active listings up significantly from 2021, easing inventory
constraints for buyers
The supply of active listings for
sale in the U.S. increased significantly in December over the
previous year, signaling continued hesitation from buyers in the
face of mortgage affordability and other obstacles. While the
number of homes for sale continued to increase in the latter part
of 2022, inventory is still significantly lower than it was in 2019
before the pandemic. Home sellers also continued to be less active
in December and fewer listed their home for sale compared to one
year ago.
- Nationally, the active inventory of homes for sale grew 54.7%
year-over-year in December, but is still well below pre-pandemic
levels (-38.2% compared to the December 2017-2019 average).
- Both newly-listed homes (-21.0%) and pending listings, or homes
under contract with a buyer (-36.8%), declined year-over-year.
- Among the 50 largest U.S. metros, 49 markets posted yearly
active inventory gains in December, led by Raleigh, N.C. (+226.2%), Nashville, Tenn., (+226.0%), and Austin, Texas (+186.6%). Only Hartford, Conn. (-7.7%) saw a year-over-year
decline in the number of for-sale homes.
- In December, on average across the 50 largest metros, the
number of homes for sale was up 74.6% compared to a year ago, with
the most growth in active listings in the West (+110.2%), which
nearly reached pre-pandemic 2019 levels (-3.9%).
- On average across the 50 largest metros, no regions saw
year-over-year new listing increases in December, with the greatest
declines registered in the West (-32.5%), followed by the Northeast
(-21.8%), Midwest (-19.3%) and South (-17.2%). Furthermore,
newly-listed homes increased in just two markets: Nashville(4.1%) and Buffalo, N.Y.. (+3.0%).
Home price growth moderates to single digits for the first
time in a year
In December, growth in the typical asking
price slowed to a single-digit pace for the first time since
December 2021. While this is still
higher than normal, it's a significant slowdown from the peak 18%
year over year pace seen earlier in 2022 and signals that fewer
buyers are willing to take the plunge amid ongoing housing
affordability challenges. Despite recent easing in mortgage rates
from their early-November peak, higher rates and home prices
compared to a year ago have increased the typical mortgage payment
by nearly $750 each month or 58.9%
more than last year, far outpacing recent rent growth (3.4%) and
inflation (7.1%). Realtor.com®'s expectation for 2023 is
that rates will climb higher early in the year before falling in
the second half.
- In December, the U.S. median listing price was $400,000, up 8.4% year-over-year. This is the
first time since December 2021 the
annual growth rate has fallen below double-digits.
- While the monthly home price growth rate has slowed from the
double-digits seen during the pandemic frenzy, overall, home prices
continued to rise in 2022, and the median list price was up an
average 13.4% compared to the previous year.
- The slowdown in the demand for homes has caused sellers to cut
their prices. Nationally, 13.6% of active listings had their price
reduced, a higher share than in December
2021 (+6.5 percentage points), but similar to the 2018 share
(14.5%).
- Among the 50 largest U.S. metros, the biggest annual listing
price gains were in Midwest metros (+12.2%, on average). The
markets with the biggest increases were Milwaukee (+46.2%), Memphis, Tenn. (+34.0%), and Miami (+20.4%).
- Southern (+9.6 percentage points) and Western metros (+8.7
percentage points) saw the greatest increases in the share of
listings with price reductions. Listing prices declined in nine
markets, led by New Orleans
(-4.4%), Denver (-4.0%),
Austin (-3.4%), Phoenix( -2.4%) , and Pittsburgh (-2.3%).
Homes stay on the market 11 days longer on average as buyers
take their time to decide
For-sale homes continued to spend
more time on market compared to the prior year amid a growing
number of homes for sale and softening buyer demand. Modestly
rising incomes (+4.6% year over year in December) and a robust jobs
market (unemployment remains low at 3.5% in December), cannot
completely offset lower buyer purchasing power, and as a result,
homes are sitting on the market for longer, as buyers take their
time to decide. Homes still sold faster in December than was common
in 2019, with more affordable, lower-priced markets in the Midwest
and Northeast seeing homes sell faster than in other areas. Looking
ahead, mid-sized markets that offer better affordability and solid
jobs and economies, especially those among
Realtor.com®'s top housing markets of 2023, may continue
to be attractive to homeshoppers, especially those with the
flexibility to relocate.
- In December, the typical home spent 67 days on market, 11 days
longer than last year, but still 16 days faster than in 2017-2019,
on average.
- Time on market was lower across the 50 largest U.S. metros (61
days, on average) relative to the national pace, but also slowed
from the December 2021 pace (+11
days).
- Forty-five metros saw an increase in time on market compared to
last year, with larger metros in the West seeing the greatest
increase (+18 days) followed by the South (+13 days). Metros where
homes spent longest on the market compared to December 2021 were Raleigh, N.C. (+36 days), Phoenix (+34 days), and Las Vegas (+33 days).
- In the five metros where time on market declined compared to
last year the biggest declines were seen in Milwaukee (-16 days) and New Orleans (-5 days).
December 2022 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-Roswell, Ga.
|
$399,900
|
2.6 %
|
3.2 %
|
62.2 %
|
-20.5 %
|
60
|
12
|
16.2 %
|
9.6 pp
|
Austin-Round Rock,
Texas
|
$525,000
|
-3.4 %
|
-1.2 %
|
186.6 %
|
-18.8 %
|
73
|
27
|
24.6 %
|
15.5 pp
|
Baltimore-Columbia-Towson, Md.
|
$329,900
|
6.4 %
|
4.2 %
|
17.2 %
|
-22.8 %
|
53
|
4
|
12.1 %
|
3.1 pp
|
Birmingham-Hoover,
Ala.
|
$272,000
|
-1.1 %
|
4.6 %
|
69.7 %
|
-10.4 %
|
65
|
4
|
13.5 %
|
6.5 pp
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$745,000
|
8.4 %
|
-0.4 %
|
25.7 %
|
-27.2 %
|
59
|
7
|
11.0 %
|
2.9 pp
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
$225,000
|
5.4 %
|
6.1 %
|
29.6 %
|
3.0 %
|
64
|
-2
|
7.0 %
|
2.6 pp
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$394,990
|
1.4 %
|
5.9 %
|
111.0 %
|
-20.1 %
|
60
|
21
|
16.4 %
|
8.6 pp
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$320,000
|
2.4 %
|
-1.6 %
|
5.2 %
|
-23.0 %
|
57
|
3
|
10.6 %
|
2.4 pp
|
Cincinnati,
Ohio-Ky.-Ind.
|
$324,900
|
9.4 %
|
4.0 %
|
11.0 %
|
-19.4 %
|
52
|
3
|
8.8 %
|
1.4 pp
|
Cleveland-Elyria,
Ohio
|
$189,900
|
2.7 %
|
4.0 %
|
17.9 %
|
-21.2 %
|
57
|
3
|
14.3 %
|
4.6 pp
|
Columbus,
Ohio
|
$329,450
|
13.7 %
|
8.0 %
|
39.9 %
|
-14.7 %
|
51
|
10
|
16.6 %
|
8.4 pp
|
Dallas-Fort
Worth-Arlington, Texas
|
$435,213
|
8.8 %
|
5.7 %
|
160.8 %
|
-9.1 %
|
59
|
17
|
18.7 %
|
13 pp
|
Denver-Aurora-Lakewood,
Colo.
|
$600,000
|
-4.0 %
|
-4.7 %
|
146.2 %
|
-29.6 %
|
61
|
21
|
17.8 %
|
12.2 pp
|
Detroit-Warren-Dearborn, Mich.
|
$229,900
|
6.0 %
|
2.2 %
|
39.4 %
|
-12.5 %
|
56
|
11
|
17.4 %
|
4.5 pp
|
Hartford-West
Hartford-East Hartford, Conn.
|
$359,000
|
4.8 %
|
1.4 %
|
-7.7 %
|
-29.8 %
|
65
|
10
|
7.3 %
|
2.1 pp
|
Houston-The
Woodlands-Sugar Land, Texas
|
$359,900
|
0.0 %
|
2.0 %
|
49.8 %
|
-5.3 %
|
60
|
6
|
14.0 %
|
4.8 pp
|
Indianapolis-Carmel-Anderson, Ind.
|
$290,000
|
5.5 %
|
7.6 %
|
77.8 %
|
-17.8 %
|
55
|
9
|
18.1 %
|
9.6 pp
|
Jacksonville,
Fla.
|
$386,990
|
5.3 %
|
6.0 %
|
144.7 %
|
-12.7 %
|
67
|
17
|
20.4 %
|
14.6 pp
|
Kansas City,
Mo.-Kan.
|
$409,900
|
19.7 %
|
10.0 %
|
61.4 %
|
-29.0 %
|
77
|
19
|
10.6 %
|
4.7 pp
|
Las
Vegas-Henderson-Paradise, Nev.
|
$440,000
|
-2.2 %
|
4.2 %
|
108.0 %
|
-23.4 %
|
74
|
33
|
19.5 %
|
9.4 pp
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$891,000
|
-1.8 %
|
-1.6 %
|
92.1 %
|
-31.4 %
|
70
|
21
|
10.2 %
|
5.8 pp
|
Louisville/Jefferson
County, Ky.-Ind.
|
$290,000
|
13.3 %
|
4.5 %
|
33.4 %
|
-33.3 %
|
51
|
10
|
16.7 %
|
5.8 pp
|
Memphis,
Tenn.-Miss.-Ark.
|
$325,000
|
34.0 %
|
18.1 %
|
115.6 %
|
-30.8 %
|
61
|
16
|
17.9 %
|
11.7 pp
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$590,000
|
20.4 %
|
9.2 %
|
52.7 %
|
-14.8 %
|
68
|
5
|
13.5 %
|
8.1 pp
|
Milwaukee-Waukesha-West
Allis, Wis.
|
$375,000
|
46.2 %
|
21.4 %
|
7.1 %
|
-12.7 %
|
50
|
-16
|
11.1 %
|
2 pp
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$400,000
|
11.9 %
|
6.6 %
|
9.8 %
|
-16.1 %
|
58
|
7
|
10.8 %
|
4.2 pp
|
Nashville-Davidson--Murfreesboro--Franklin,
Tenn.
|
$515,000
|
12.0 %
|
6.6 %
|
226.0 %
|
4.1 %
|
50
|
22
|
17.2 %
|
10.3 pp
|
New Orleans-Metairie,
La.
|
$325,000
|
-4.4 %
|
-2.8 %
|
97.1 %
|
-14.9 %
|
75
|
-5
|
11.7 %
|
4.1 pp
|
New York-Newark-Jersey
City, N.Y.-N.J.-Pa.
|
$658,944
|
6.5 %
|
5.6 %
|
4.0 %
|
-29.1 %
|
81
|
5
|
6.7 %
|
1.7 pp
|
Oklahoma City,
Okla.
|
$324,023
|
11.7 %
|
8.1 %
|
76.5 %
|
-24.1 %
|
62
|
15
|
18.9 %
|
11.4 pp
|
Orlando-Kissimmee-Sanford, Fla.
|
$429,990
|
10.3 %
|
11.3 %
|
119.4 %
|
-24.8 %
|
70
|
10
|
17.7 %
|
12.4 pp
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$320,000
|
6.7 %
|
4.1 %
|
15.7 %
|
-23.1 %
|
66
|
8
|
11.7 %
|
3.3 pp
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$474,500
|
-2.4 %
|
2.7 %
|
165.5 %
|
-21.3 %
|
70
|
34
|
25.5 %
|
17.3 pp
|
Pittsburgh,
Pa.
|
$205,000
|
-2.3 %
|
-2.0 %
|
20.6 %
|
-14.1 %
|
73
|
8
|
11.9 %
|
1.9 pp
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$589,000
|
7.3 %
|
2.3 %
|
91.5 %
|
-40.3 %
|
66
|
16
|
12.8 %
|
-1.9 pp
|
Providence-Warwick,
R.I.-Mass.
|
$469,900
|
10.6 %
|
6.3 %
|
18.1 %
|
-25.4 %
|
46.5
|
-3
|
9.4 %
|
4.3 pp
|
Raleigh,
N.C.
|
$446,000
|
5.7 %
|
3.4 %
|
226.2 %
|
-17.0 %
|
71
|
36
|
17.0 %
|
11.7 pp
|
Richmond,
Va.
|
$375,000
|
6.3 %
|
7.1 %
|
49.6 %
|
-20.7 %
|
56
|
2
|
11.9 %
|
8.3 pp
|
Riverside-San
Bernardino-Ontario, Calif.
|
$558,000
|
1.6 %
|
6.6 %
|
114.3 %
|
-26.8 %
|
69
|
24
|
14.2 %
|
8.2 pp
|
Rochester,
N.Y.
|
$237,000
|
20.3 %
|
16.0 %
|
16.8 %
|
-23.6 %
|
44
|
5
|
8.9 %
|
2.1 pp
|
Sacramento--Roseville--Arden-Arcade,
Calif.
|
$585,000
|
-2.0 %
|
-2.6 %
|
84.5 %
|
-27.1 %
|
64
|
21
|
14.6 %
|
8.3 pp
|
San Antonio-New
Braunfels, Texas
|
$349,000
|
3.5 %
|
2.9 %
|
99.3 %
|
-18.0 %
|
68
|
19
|
18.6 %
|
10.7 pp
|
San Diego-Carlsbad,
Calif.
|
$899,000
|
9.6 %
|
5.0 %
|
96.1 %
|
-34.6 %
|
56
|
10
|
12.9 %
|
8.3 pp
|
San
Francisco-Oakland-Hayward, Calif.
|
$990,000
|
4.6 %
|
-2.6 %
|
57.1 %
|
-40.4 %
|
63
|
15
|
9.8 %
|
6.1 pp
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$1,395,000
|
12.6 %
|
-0.2 %
|
80.3 %
|
-43.9 %
|
53
|
N/A
|
12.6 %
|
10.4 pp
|
Seattle-Tacoma-Bellevue, Wash.
|
$724,950
|
9.4 %
|
3.0 %
|
176.3 %
|
-39.0 %
|
60
|
21
|
15.1 %
|
11.6 pp
|
St. Louis,
Mo.-Ill.
|
$265,228
|
10.5 %
|
5.7 %
|
22.7 %
|
-22.6 %
|
56
|
1
|
12.0 %
|
4.2 pp
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$405,000
|
7.3 %
|
7.2 %
|
170.9 %
|
-14.1 %
|
59
|
5
|
22.4 %
|
15.3 pp
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$359,900
|
19.2 %
|
8.0 %
|
9.1 %
|
-15.6 %
|
50
|
12
|
14.1 %
|
6.1 pp
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$555,000
|
11.0 %
|
-2.0 %
|
27.0 %
|
-28.1 %
|
57
|
9
|
10.8 %
|
3.4 pp
|
Methodology
Realtor.com® housing data as of
December 2022. Listings include the
active inventory of existing single-family homes and
condos/townhomes/rowhomes/co-ops for the given level of geography;
new construction is excluded unless listed via an MLS.
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,
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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,
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
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