In February, active inventory rose 68% above a
year ago; Austin, Las Vegas and San
Antonio are first markets to recover pandemic inventory
shortages and surpass pre-pandemic levels
SANTA
CLARA, Calif., March 2,
2023 /PRNewswire/ -- The U.S. supply of homes for
sale rose at a record annual pace for the sixth month in a row, up
67.8% year over year in February, signaling the housing market's
continued rebalancing, according to the Realtor.com®
Monthly Housing Trends Report released today. Despite the
significant increase in inventory over last year's record lows,
home prices are still growing, albeit at a slower pace of 7.8% over
last February, a sign of still-high hopes from home sellers
entering the market.
What it means for homebuyers, sellers, and the housing
market
In a market with conditions that don't particularly
favor buyers or sellers, both will likely have to make compromises
to make a deal happen. As mortgage rates continue to fluctuate and
increase the cost of buying a home, it's important for sellers to
price their home appropriately to attract buyers in the market. For
buyers, it's critical they make the best offer they can on a home
that fits their needs and budget. Realtor.com®'s
mortgage calculator can help home shoppers estimate monthly
payments quickly and easily as rates change from week to week.
"The number of homes for sale on the market is up significantly
from a year ago, even though fewer homeowners have listed their
home for sale in recent months. High home prices and mortgage rates
continue to cut into buyer interest and homes are taking more than
three weeks longer to sell than last year," said Danielle Hale, Chief Economist for
Realtor.com®. "With a smaller pool of buyers today and
more competition from other homes on the market, homesellers will
likely need to adjust their price expectations in the market this
spring."
"For many, shopping for a new home often begins or picks up as
we head into the warmer months, which is right around the corner,"
said Clare Trapasso, executive news
editor at Realtor.com®. "Potential buyers looking to
take advantage of more homes to choose from and a less competitive
pace also have more negotiating power than they did a year ago. So
if a home has been on the market a while without receiving any
offers, they may want the seller to contribute to their closing
costs, make expensive repairs, or even buy down their mortgage
rate."
February 2023 Housing Metrics –
National
Metric
|
Change over Feb.
2022
|
Change over Feb.
2019
|
Median listing
price
|
7.8% (to
$415,000)
|
+40.1 %
|
Active
listings
|
67.8 %
|
-47.5 %
|
New listings
|
-15.9 %
|
-23.9 %
|
Median days on
market
|
+23 days (to 67
days)
|
-17 days
|
Share of active
listings with price reductions
|
+7.6 percentage
points (to 13.3%)
|
-2.7 percentage
points
|
More options despite fewer sellers entering the
market
The supply of homes for sale continued to rise
in February at a record annual pace, driven mostly by low interest
from buyers facing high home and mortgage costs rather than an
influx of new homes for sale to the market. Despite a significant
increase in the number of homes for sale in recent months as
existing home sales and demand slow, there are still fewer
homes available to buy nationwide on a typical day than there were
a few years ago.
- In February, the U.S. supply of active listings for sale rose
at a record annual pace for the sixth month in a row, up 67.8%
compared to last year, but it is still well below pre-pandemic
levels (-47.4% compared to the February 2017-2019 average). Both
newly-listed homes (-15.9%) and pending listings, or homes under
contract with a buyer (-24.7%), declined year-over-year.
- Across the 50 largest metros, the number of homes for sale was
up 86.0% compared to last February, with the most growth in active
listings in the South (+141.4%).
- Among the 50 largest U.S. metros, 49 markets saw active
inventory gains in February compared to last year, but only
Las Vegas, Austin, Texas, and San Antonio saw higher levels of inventory
compared to typical February 2017–2019 levels. Hartford, Conn. (-8.8%) was the only metro to
see inventory decline on a year-over-year basis.
- Six metros saw the number of newly listed homes increase over
last year, led by Raleigh, N.C.
(+14.8%), Dallas (+10.3%) and
San Antonio (+10.2%). The largest
yearly decline in newly listed homes were in western metros,
including San Jose, Calif.
(-43.3%), San Francisco (-39.4%),
and Seattle (-36.8%).
Home price growth continues to level off as more sellers drop
their asking price
While home prices were up in February
compared to last year, year-over-year asking price growth has
remained in the single digits for three months in a row, suggesting
that home prices are continuing to moderate and cool down from last
year's record highs. While mortgage rates are down from their
November highs, rates rebounded this month and with higher home
prices compared to last February, the typical monthly mortgage
payment is roughly $630 more than it
was a year ago. As a result of these cost pressures, the slowdown
in the demand for homes means more than twice as many sellers cut
their asking price in February compared to last year.
- The U.S. median listing price was $415,000 in February, up from $406,000 in January, and 7.8% higher than a year
ago.
- Among the 50 largest U.S. metros, the biggest annual listing
price gains were in Midwest metros (+11.9%, on average). The metros
with the biggest asking price increases were Milwaukee (+48.8%), Memphis (+42.7%), and Virginia Beach (+16.3%);
however, in these metros the mix of inventory also changed and more
larger, expensive homes are for sale today.
- In February, 13.0% of active listings had their price reduced,
up from 5.4% a year ago. Southern metros (+10.3 percentage points)
saw the largest increase in the share of listings with price
reductions.
- Listing prices declined in eight markets, led by Austin (-8.0% year-over-year), New Orleans (-7.0%), and Pittsburgh (-6.9%). In those markets, the
median price-per-square-foot also declined on a yearly basis,
signaling that price declines weren't from a rise in smaller homes
for sale but by sellers adjusting their expectations and sales
price.
Homes take three weeks longer to sell than last
year
The housing market has cooled considerably since the
height of the pandemic, when buyer demand outmatched the record low
supply of homes for sale and bidding wars were common. In February,
homes took more than three weeks longer to sell than they did at
this time last year, despite an uptick in buyer sentiment in
January. The continued slower pace of home sales signals a return
to a more balanced housing market and what was considered normal
before the pandemic, and it gives buyers more time to decide if a
house is right for them.
- The typical home spent 67 days on market in February, 23 days
longer than this time last year, but still 20 days faster than in
February 2017-2019, on average.
- Relative to the national pace, time on market was lower across
the 50 largest U.S. metros in February (56 days, on average) and
was 19 days slower than the February
2022 pace.
- Compared to last year, 47 out of 50 metros saw an increase in
time on market with larger metros in the West seeing the greatest
increase (+26 days). Austin, Texas
(+52 days), Raleigh, N.C. (+51
days), and Las Vegas and
Denver (+38 days) saw the greatest
increases in time on market.
- Only one market saw shrinking time on market and two were
unchanged from last year: Hartford,
Conn. (-2 days), Cincinnati,
Ohio (+0 days), and Buffalo,
N.Y. (+0 days).
February 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-Alpharetta, Ga.
|
$400,000
|
2.2 %
|
1.5 %
|
80.5 %
|
-20.4 %
|
52
|
15
|
14.9 %
|
9.8 pp
|
Austin-Round
Rock-Georgetown, Texas
|
$533,000
|
-8.0 %
|
-8.2 %
|
335.1 %
|
5.8 %
|
72
|
52
|
25.4 %
|
21.2 pp
|
Baltimore-Columbia-Towson, Md.
|
$323,000
|
7.5 %
|
4.2 %
|
23.1 %
|
-22.9 %
|
52
|
13
|
11.3 %
|
4.2 pp
|
Birmingham-Hoover,
Ala.
|
$272,000
|
3.5 %
|
6.1 %
|
63.8 %
|
-20.3 %
|
66
|
23
|
13.2 %
|
7.1 pp
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$799,000
|
6.7 %
|
-3.5 %
|
30.2 %
|
-23.9 %
|
38
|
13
|
9.9 %
|
5.0 pp
|
Buffalo-Cheektowaga,
N.Y.
|
$227,000
|
8.3 %
|
4.9 %
|
31.6 %
|
0.0 %
|
65
|
0
|
5.4 %
|
2.1 pp
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$397,000
|
1.9 %
|
2.9 %
|
136.6 %
|
-4.1 %
|
57
|
29
|
13.7 %
|
7.9 pp
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$338,000
|
4.0 %
|
-3.5 %
|
10.8 %
|
-24.4 %
|
47
|
6
|
9.6 %
|
3.5 pp
|
Cincinnati,
Ohio-Ky.-Ind.
|
$360,000
|
13.4 %
|
4.7 %
|
19.9 %
|
-17.4 %
|
54
|
0
|
9.6 %
|
4.2 pp
|
Cleveland-Elyria,
Ohio
|
$199,000
|
10.9 %
|
6.2 %
|
27.8 %
|
-6.6 %
|
57
|
5
|
11.6 %
|
5.0 pp
|
Columbus,
Ohio
|
$360,000
|
10.8 %
|
4.1 %
|
38.9 %
|
-9.9 %
|
42
|
17
|
12.3 %
|
7.2 pp
|
Dallas-Fort
Worth-Arlington, Texas
|
$435,000
|
5.6 %
|
2.1 %
|
208.2 %
|
10.3 %
|
61
|
29
|
15.9 %
|
12.7 pp
|
Denver-Aurora-Lakewood,
Colo.
|
$630,000
|
-2.8 %
|
-2.6 %
|
116.8 %
|
-17.0 %
|
44
|
38
|
13.1 %
|
10.9 pp
|
Detroit-Warren-Dearborn, Mich.
|
$229,000
|
6.5 %
|
3.4 %
|
40.8 %
|
-14.6 %
|
59
|
22
|
14.3 %
|
5.7 pp
|
Hartford-East
Hartford-Middletown, Conn.
|
$396,000
|
9.4 %
|
3.1 %
|
-8.8 %
|
-18.9 %
|
40
|
-2
|
5.1 %
|
1.8 pp
|
Houston-The
Woodlands-Sugar Land, Texas
|
$358,000
|
-0.9 %
|
-0.1 %
|
61.0 %
|
-10.1 %
|
55
|
14
|
14.8 %
|
7.7 pp
|
Indianapolis-Carmel-Anderson, Ind.
|
$300,000
|
2.8 %
|
2.9 %
|
86.2 %
|
-5.1 %
|
61
|
23
|
14.4 %
|
8.7 pp
|
Jacksonville,
Fla.
|
$390,000
|
2.2 %
|
3.5 %
|
172.5 %
|
5.1 %
|
65
|
27
|
19.1 %
|
14.6 pp
|
Kansas City,
Mo.-Kan.
|
$442,000
|
14.2 %
|
7.4 %
|
82.5 %
|
-23.1 %
|
92
|
31
|
8.8 %
|
5.4 pp
|
Las
Vegas-Henderson-Paradise, Nev.
|
$446,000
|
-6.2 %
|
-2.1 %
|
105.9 %
|
-30.4 %
|
67
|
38
|
21.9 %
|
15.1 pp
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$974,000
|
2.6 %
|
1.1 %
|
51.0 %
|
-33.1 %
|
53
|
22
|
9.7 %
|
5.9 pp
|
Louisville/Jefferson
County, Ky.-Ind.
|
$300,000
|
7.2 %
|
2.5 %
|
45.4 %
|
-12.5 %
|
46
|
10
|
12.8 %
|
6.2 pp
|
Memphis,
Tenn.-Miss.-Ark.
|
$323,000
|
42.7 %
|
18.4 %
|
136.1 %
|
-0.7 %
|
69
|
29
|
15.0 %
|
10.3 pp
|
Miami-Fort
Lauderdale-Pompano Beach, Fla.
|
$599,000
|
14.7 %
|
4.0 %
|
87.7 %
|
-11.4 %
|
69
|
16
|
14.6 %
|
10.2 pp
|
Milwaukee-Waukesha,
Wis.
|
$413,000
|
48.8 %
|
22.6 %
|
18.1 %
|
-23.7 %
|
52
|
16
|
9.8 %
|
2.3 pp
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$435,000
|
8.9 %
|
17.1 %
|
23.8 %
|
-34.2 %
|
50
|
16
|
7.2 %
|
4.0 pp
|
Nashville-Davidson-Murfreesboro-Franklin,
Tenn.
|
$518,000
|
8.9 %
|
3.1 %
|
299.7 %
|
2.2 %
|
39
|
24
|
19.0 %
|
14.4 pp
|
New Orleans-Metairie,
La.
|
$325,000
|
-7.0 %
|
-2.9 %
|
115.1 %
|
-18.1 %
|
71
|
2
|
15.4 %
|
7.2 pp
|
New York-Newark-Jersey
City, N.Y.-N.J.-Pa.
|
$680,000
|
6.7 %
|
5.4 %
|
5.9 %
|
-28.3 %
|
84
|
15
|
7.3 %
|
2.5 pp
|
Oklahoma City,
Okla.
|
$349,000
|
6.1 %
|
3.9 %
|
120.8 %
|
-14.1 %
|
53
|
9
|
14.9 %
|
8.3 pp
|
Orlando-Kissimmee-Sanford, Fla.
|
$435,000
|
9.4 %
|
6.9 %
|
153.1 %
|
-10.9 %
|
65
|
30
|
16.1 %
|
12.1 pp
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$322,000
|
7.5 %
|
3.4 %
|
23.1 %
|
-19.8 %
|
67
|
14
|
11.4 %
|
4.4 pp
|
Phoenix-Mesa-Chandler,
Ariz.
|
$487,000
|
-2.6 %
|
-0.8 %
|
208.6 %
|
-12.3 %
|
62
|
34
|
24.6 %
|
19.2 pp
|
Pittsburgh,
Pa.
|
$200,000
|
-6.9 %
|
-4.8 %
|
29.4 %
|
-12.2 %
|
89
|
11
|
12.8 %
|
4.8 pp
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$607,000
|
8.1 %
|
-0.8 %
|
76.3 %
|
-35.2 %
|
54
|
25
|
10.1 %
|
0.7 pp
|
Providence-Warwick,
R.I.-Mass.
|
$498,000
|
8.9 %
|
3.6 %
|
26.3 %
|
-19.2 %
|
45
|
6
|
7.8 %
|
4.1 pp
|
Raleigh-Cary,
N.C.
|
$449,000
|
3.6 %
|
-2.4 %
|
329.8 %
|
14.8 %
|
68
|
51
|
13.2 %
|
10.7 pp
|
Richmond,
Va.
|
$392,000
|
6.8 %
|
5.4 %
|
58.9 %
|
-22.4 %
|
54
|
15
|
7.9 %
|
4.9 pp
|
Riverside-San
Bernardino-Ontario, Calif.
|
$560,000
|
1.8 %
|
3.4 %
|
94.7 %
|
-30.4 %
|
66
|
35
|
13.9 %
|
9.5 pp
|
Rochester,
N.Y.
|
$232,000
|
3.9 %
|
5.8 %
|
25.0 %
|
-1.5 %
|
31
|
9
|
7.3 %
|
1.9 pp
|
Sacramento-Roseville-Folsom, Calif.
|
$605,000
|
-3.8 %
|
-4.1 %
|
47.9 %
|
-34.5 %
|
52
|
27
|
12.0 %
|
6.5 pp
|
San Antonio-New
Braunfels, Texas
|
$340,000
|
1.0 %
|
0.0 %
|
150.4 %
|
10.2 %
|
70
|
27
|
17.2 %
|
12.9 pp
|
San Diego-Chula
Vista-Carlsbad, Calif.
|
$932,000
|
9.7 %
|
3.3 %
|
54.1 %
|
-32.7 %
|
38
|
11
|
10.1 %
|
7.3 pp
|
San
Francisco-Oakland-Berkeley, Calif.
|
$1,009,000
|
1.7 %
|
-4.0 %
|
24.4 %
|
-39.4 %
|
33
|
14
|
8.4 %
|
5.0 pp
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$1,400,000
|
3.2 %
|
0.8 %
|
29.9 %
|
-43.3 %
|
30
|
18
|
8.5 %
|
6.7 pp
|
Seattle-Tacoma-Bellevue, Wash.
|
$750,000
|
3.8 %
|
0.9 %
|
102.4 %
|
-36.8 %
|
45
|
28
|
10.1 %
|
8.2 pp
|
St. Louis,
Mo.-Ill.
|
$272,000
|
3.5 %
|
4.8 %
|
23.6 %
|
-15.3 %
|
67
|
16
|
9.7 %
|
5.0 pp
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$400,000
|
1.4 %
|
1.7 %
|
224.5 %
|
-0.7 %
|
60
|
28
|
21.1 %
|
16.5 pp
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$372,000
|
16.3 %
|
7.8 %
|
25.4 %
|
-19.8 %
|
40
|
12
|
12.3 %
|
7.3 pp
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$585,000
|
10.8 %
|
0.1 %
|
23.3 %
|
-31.8 %
|
43
|
10
|
9.0 %
|
4.3 pp
|
Methodology
Realtor.com® housing data as of
February 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).
Note: With the release of its February
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.
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
sara.wiskerchen@move.com
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