More home buyers are on the move this year,
with 56% of listing views going to out-of-metro homes; affordable
metros in the Midwest and Northeast gain in popularity
SANTA
CLARA, Calif., Feb. 2, 2023
/PRNewswire/ -- The U.S. housing market offered homebuyers greater
bargaining power in January, as mortgage rates fell to their lowest
level in months, inventory rose, and the growth in the typical
asking price continued to slow, according to the
Realtor.com® Monthly Housing Trends Report released
today. Meanwhile, the annual decline in new listings also moderated
to single digits in January; new listings remain an important
indicator of home selling interest, and a sustained improvement
would suggest more sellers are returning to the market in the
coming months.
"Home buying in January remained relatively sluggish as sales
slowed, inventories rose, and price growth leveled off. These
trends reinforce that while buyers are gaining an advantage in the
market, they are still being deterred by high home prices and
financing costs," said Danielle
Hale, Chief Economist for Realtor.com®. "Even as
inventories climb and prices moderate, homeowners have equity and
advantages in the market but need to set their expectations
accordingly. For renters looking to become homeowners this year our
Best Markets for First-Time Homebuyers identified pockets of
affordability across the country, particularly in the northeast,
where they might be able to better overcome affordability
challenges and find a better deal."
January 2023 Housing
Metrics – National
|
Metric
|
Change over Jan.
2022
|
Change over Jan
2019
|
Median listing
price
|
8.1% (to
$400,000)
|
38.1 %
|
Active
listings
|
65.5 %
|
-43.6 %
|
New listings
|
-5.4 %
|
-27.1 %
|
Median days on
market
|
+13 days (to 75
days)
|
-12 days
|
Share of active
listings with price reductions
|
+9.3 percentage
points
(to 15.3%)
|
-0.3 percentage
points
|
Spotlight On: Affordable metros in the Midwest and Northeast
gain in popularity
The Realtor.com® Q4
Cross-Market Demand Report also released today highlights regional
variations in home buying activity and shows that in the face of
higher affordability challenges more home buyers are on the move
this year. Across the top 100 metros in Q4 2022, 55.5% of listing
views on Realtor.com® went to properties located outside
of the shoppers' metro area, compared to 55.0% during the previous
quarter and 53.4% in the same time last year. Regionally, shoppers
in the West (63.0%) and Northeast (57.0%) were mostly likely to
search out-of-market last quarter.
Markets in the Midwest and Northeast that can offer shoppers
more affordable deals gained the most popularity from out-of-market
shoppers last quarter, including Pittsburgh; Buffalo,
N.Y.; Syracuse, N.Y.;
Albany, N.Y.; and Cleveland, Ohio. Markets that saw the greatest
decline in out-of-market home shoppers were Austin, Texas; Seattle; Knoxville,
Tenn.; Albuquerque, N.M.;
and Ogden, Utah. High financial
costs likely made Phoenix and
Los Angeles less desirable
destinations for both local and out-of-metro home shoppers last
quarter compared to the prior year, which aligns with
Realtor.com®'s 2023 Housing Forecast, which predicted
large year-over-years sales declines in those two metros.
Gradually cooling markets gives buyers more homes to choose
from
Nationally, the number of active listings in January
continued to climb higher, suggesting that less competition and
more time to make home buying decisions weren't enough to spur
buyer demand in the face of high mortgage rates and home prices.
Pending listings, or homes under contract with a buyer, continued
to drop, as did the number of newly listed homes. This month's
decline in new listings is the smallest since last July, and the
South saw an increase in new listings, which means more, fresh
for-sale options for homebuyers.
- In January, the active inventory of homes for sale grew 65.5%
year-over-year in, but is still 43.2% lower than it was before the
pandemic (January 2017-2019 average).
- Both pending listings, or homes under contract with a buyer
(-31.9%), and newly-listed homes (-5.4%), declined year-over-year.
The decline in new listings is much lower than last month's 21.0%
decrease and November's 17.2% decrease and the smallest decline
since last July's 6.8% decrease.
- Among the 50 largest U.S. metros, 49 markets posted yearly
active inventory gains in January, led by Nashville, Tenn. (+303.5%), Austin, Texas (+260.4) and Raleigh, N.C. (+254.8%). The only metro to see
inventory decline on a year-over-year basis was Hartford, Conn. (-8.0%).
- On average across the 50 largest metros, only the South saw
year-over-year new listings increase in January (+5.4%). Twelve
metros saw the number of newly listed homes increase compared to
last year, up from only two markets in December, all of these
markets were located in the South, with Raleigh, N.C. (+49.0%), Nashville, Tenn. (+45.3%), and Austin, Texas (+24.9%) seeing the greatest
increases.
Buyers see slower price growth and have more time for
decision making on a purchase
In January, the U.S. median
listing price remained unchanged from December. Growth in the
typical asking price (+8.1% year over year) also remained little
changed from last month, after six months of decelerating price
growth, suggesting a potential slowdown in the normalization of
prices that could continue as we head further into 2023. As the
number of homes for sale continues to rise, sellers were more than
twice as likely as last year to reduce the asking price for their
home. Homes also spent more time on market than last year, with
homes in western metros spending 12 days more on the market
compared to pre-pandemic times, but in all other regions homes are
still selling more quickly than 2017–2019, on average.
- The U.S. median listing price was $400,000 in January, up 8.1% year-over-year,
which is only a slight change from the December growth rate.
- The share of homes with price reductions increased from 6.0% in
January 2022 to 15.3% this year. This
is generally higher than it was before the pandemic, but is still
slightly lower than 2019 levels (15.6%).
- The typical home spent 75 days on the market in January, 13
days longer than last year, but still 16 days faster than
2017–2019, on average.
- Across the 50 largest U.S. metros, 45 metros saw an increase in
time on market compared to the same time last year, with the
greatest increases seen in Raleigh,
N.C. (+41 days), Las Vegas
and Denver (+40 days,
respectively). Only three markets saw shrinking time on market,
including Richmond, Va. (-20
days), Milwaukee (-8 days), and
Buffalo, N.Y. (-3
days).
Q4 Cross-Market Demand
Housing Metrics
|
Region
|
Share of Outbound
Views to Other Metros (2022Q4)
|
Share of Outbound
Views to Other Metros (2021Q4)
|
Midwest
|
51.7 %
|
49.1 %
|
Northeast
|
57.0 %
|
52.9 %
|
South
|
52.2 %
|
50.5 %
|
West
|
63.0 %
|
62.4 %
|
Top 100
metros
|
55.5 %
|
53.4 %
|
*Note: Regional Q4 2022
Cross-Market Demand metrics include top 100 metros across the U.S.
50 States and District of Columbia.
|
January 2023 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.
|
$400,000
|
2.7 %
|
2.2 %
|
74.4 %
|
-2.8 %
|
67
|
14
|
17.4 %
|
11.4 pp
|
Austin-Round Rock,
Texas
|
$522,000
|
-4.8 %
|
-3.3 %
|
260.4 %
|
24.9 %
|
80
|
33
|
29.5 %
|
22.6 pp
|
Baltimore-Columbia-Towson, Md.
|
$320,000
|
8.4 %
|
3.3 %
|
27.1 %
|
-16.3 %
|
59
|
3
|
13.4 %
|
5.4 pp
|
Birmingham-Hoover,
Ala.
|
$270,000
|
1.9 %
|
5.3 %
|
74.5 %
|
4.5 %
|
71
|
0
|
15.2 %
|
9.0 pp
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$753,000
|
7.6 %
|
-4.4 %
|
37.7 %
|
-1.6 %
|
65
|
7
|
10.1 %
|
4.9 pp
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
$224,000
|
6.4 %
|
4.9 %
|
29.6 %
|
-9.0 %
|
73
|
-3
|
7.5 %
|
5.0 pp
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$390,000
|
-1.3 %
|
4.1 %
|
130.2 %
|
-9.5 %
|
70
|
29
|
18.5 %
|
13.2 pp
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$327,000
|
4.1 %
|
-2.1 %
|
13.0 %
|
-15.6 %
|
64
|
3
|
10.6 %
|
3.8 pp
|
Cincinnati,
Ohio-Ky.-Ind.
|
$327,000
|
9.2 %
|
3.7 %
|
13.8 %
|
-13.1 %
|
59
|
0
|
12.0 %
|
4.8 pp
|
Cleveland-Elyria,
Ohio
|
$190,000
|
6.1 %
|
4.7 %
|
28.8 %
|
-10.1 %
|
65
|
4
|
13.4 %
|
6.0 pp
|
Columbus,
Ohio
|
$344,000
|
14.7 %
|
6.2 %
|
40.6 %
|
-11.0 %
|
59
|
18
|
18.2 %
|
10.5 pp
|
Dallas-Fort
Worth-Arlington, Texas
|
$430,000
|
7.5 %
|
3.7 %
|
199.4 %
|
12.9 %
|
66
|
25
|
21.6 %
|
17.4 pp
|
Denver-Aurora-Lakewood,
Colo.
|
$600,000
|
-5.8 %
|
-8.0 %
|
163.1 %
|
-9.8 %
|
67
|
40
|
16.3 %
|
13.6 pp
|
Detroit-Warren-Dearborn, Mich.
|
$225,000
|
9.7 %
|
3.7 %
|
45.0 %
|
-7.0 %
|
66
|
11
|
15.8 %
|
6.3 pp
|
Hartford-West
Hartford-East Hartford, Conn.
|
$361,000
|
3.2 %
|
0.6 %
|
-8.0 %
|
-10.9 %
|
72
|
4
|
6.0 %
|
1.7 pp
|
Houston-The
Woodlands-Sugar Land, Texas
|
$355,000
|
-0.6 %
|
1.4 %
|
55.3 %
|
-0.1 %
|
65
|
2
|
16.4 %
|
8.1 pp
|
Indianapolis-Carmel-Anderson, Ind.
|
$289,000
|
4.9 %
|
6.2 %
|
83.3 %
|
-14.3 %
|
64
|
13
|
17.4 %
|
9.7 pp
|
Jacksonville,
Fla.
|
$380,000
|
2.0 %
|
5.0 %
|
149.3 %
|
-0.6 %
|
76
|
26
|
22.4 %
|
17.3 pp
|
Kansas City,
Mo.-Kan.
|
$429,000
|
17.5 %
|
10.4 %
|
83.3 %
|
-0.8 %
|
90
|
19
|
11.2 %
|
7.3 pp
|
Las
Vegas-Henderson-Paradise, Nev.
|
$440,000
|
-5.4 %
|
1.4 %
|
118.2 %
|
-12.9 %
|
80
|
40
|
24.3 %
|
16.9 pp
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$884,000
|
-4.0 %
|
-3.0 %
|
95.3 %
|
-21.7 %
|
78
|
32
|
10.6 %
|
7.0 pp
|
Louisville/Jefferson
County, Ky.-Ind.
|
$296,000
|
14.0 %
|
3.6 %
|
37.0 %
|
4.1 %
|
56
|
8
|
16.3 %
|
8.2 pp
|
Memphis,
Tenn.-Miss.-Ark.
|
$324,000
|
47.3 %
|
19.6 %
|
121.9 %
|
-2.5 %
|
72
|
24
|
17.4 %
|
12.3 pp
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$590,000
|
19.2 %
|
6.9 %
|
68.8 %
|
0.4 %
|
74
|
8
|
15.1 %
|
9.8 pp
|
Milwaukee-Waukesha-West
Allis, Wis.
|
$402,000
|
43.7 %
|
22.3 %
|
19.0 %
|
-22.2 %
|
61
|
-8
|
13.7 %
|
7.1 pp
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$417,000
|
12.5 %
|
5.7 %
|
17.6 %
|
-10.1 %
|
61
|
3
|
9.6 %
|
5.2 pp
|
Nashville-Davidson--Murfreesboro--Franklin,
Tenn.
|
$505,000
|
10.8 %
|
4.7 %
|
303.5 %
|
45.3 %
|
54
|
28
|
18.3 %
|
12.6 pp
|
New Orleans-Metairie,
La.
|
$325,000
|
-5.9 %
|
-4.1 %
|
109.2 %
|
10.8 %
|
81
|
4
|
17.8 %
|
9.1 pp
|
New York-Newark-Jersey
City, N.Y.-N.J.-Pa.
|
$659,000
|
5.5 %
|
4.2 %
|
10.1 %
|
-11.2 %
|
89
|
3
|
8.3 %
|
3.7 pp
|
Oklahoma City,
Okla.
|
$337,000
|
9.0 %
|
5.9 %
|
101.1 %
|
-28.2 %
|
64
|
12
|
14.9 %
|
9.6 pp
|
Orlando-Kissimmee-Sanford, Fla.
|
$427,000
|
7.4 %
|
9.9 %
|
144.5 %
|
-4.2 %
|
74
|
30
|
20.5 %
|
15.5 pp
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$319,000
|
6.5 %
|
3.2 %
|
27.1 %
|
-6.6 %
|
73
|
8
|
13.3 %
|
6.1 pp
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$478,000
|
-3.9 %
|
1.2 %
|
190.4 %
|
-3.9 %
|
75
|
37
|
30.2 %
|
24 pp
|
Pittsburgh,
Pa.
|
$200,000
|
-2.5 %
|
-4.4 %
|
24.6 %
|
-5.8 %
|
87
|
9
|
15.6 %
|
6.1 pp
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$596,000
|
8.4 %
|
0.5 %
|
107.2 %
|
-12.5 %
|
73
|
10
|
15.9 %
|
3.4 pp
|
Providence-Warwick,
R.I.-Mass.
|
$470,000
|
4.4 %
|
2.6 %
|
32.7 %
|
-10.7 %
|
56
|
9
|
9.6 %
|
5.4 pp
|
Raleigh,
N.C.
|
$442,000
|
4.0 %
|
-0.3 %
|
254.8 %
|
49.0 %
|
78
|
41
|
17.5 %
|
13.3 pp
|
Richmond,
Va.
|
$377,000
|
3.4 %
|
5.8 %
|
60.6 %
|
2.4 %
|
63
|
-20
|
9.7 %
|
7.3 pp
|
Riverside-San
Bernardino-Ontario, Calif.
|
$550,000
|
0.9 %
|
4.8 %
|
124.4 %
|
-20.6 %
|
78
|
33
|
15.7 %
|
11.4 pp
|
Rochester,
N.Y.
|
$229,000
|
14.8 %
|
11.9 %
|
25.1 %
|
-5.0 %
|
47
|
7
|
7.4 %
|
3.1 pp
|
Sacramento--Roseville--Arden-Arcade,
Calif.
|
$592,000
|
-4.5 %
|
-4.2 %
|
82.6 %
|
-33.9 %
|
68
|
27
|
15.7 %
|
10.1 pp
|
San Antonio-New
Braunfels, Texas
|
$345,000
|
1.8 %
|
1.6 %
|
105.4 %
|
4.8 %
|
80
|
25
|
21.4 %
|
15.5 pp
|
San Diego-Carlsbad,
Calif.
|
$900,000
|
7.1 %
|
2.3 %
|
79.2 %
|
-24.4 %
|
55
|
13
|
11.4 %
|
7.9 pp
|
San
Francisco-Oakland-Hayward, Calif.
|
$972,000
|
2.5 %
|
-3.9 %
|
47.1 %
|
-31.0 %
|
64
|
25
|
10.5 %
|
7.8 pp
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$1,349,000
|
3.9 %
|
-1.0 %
|
68.8 %
|
-33.9 %
|
55
|
13
|
9.0 %
|
6.9 pp
|
Seattle-Tacoma-Bellevue, Wash.
|
$725,000
|
5.8 %
|
0.8 %
|
181.1 %
|
-21.7 %
|
66
|
29
|
14.8 %
|
12.7 pp
|
St. Louis,
Mo.-Ill.
|
$270,000
|
11.6 %
|
5.8 %
|
26.5 %
|
-15.5 %
|
67
|
7
|
13.8 %
|
6.8 pp
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$400,000
|
3.9 %
|
4.1 %
|
209.0 %
|
9.5 %
|
67
|
26
|
25.0 %
|
20.1 pp
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$365,000
|
17.7 %
|
7.8 %
|
19.7 %
|
3.5 %
|
54
|
10
|
12.6 %
|
6.1 pp
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$563,000
|
12.5 %
|
-2.5 %
|
34.5 %
|
-11.0 %
|
64
|
15
|
11.5 %
|
6.6 pp
|
Methodology
Realtor.com® housing data as of
January 2023. 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).
Realtor.com® cross-market data analyzes views of
for-sale listings on the Realtor.com® marketplace in the
top 100 metros. With the release of its Q4 2022 cross market
report, Realtor.com® incorporated a new and
improved methodology for capturing more online searching
activities. As a result of these changes, the data released
since February 2023 will not be
directly comparable with previous data releases and
Realtor.com® economics blog posts. However, future data
releases, including historical data, will consistently apply the
new methodology.
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@realtor.com
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