SANTA CLARA, California
,
September 5, 2023
(press release)
–
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 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 "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 -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 Newly listed homes improve from July, but inventory crunch continues As inventory shrinks, homes in several large markets sell faster compared to last year August 2023 Housing Overview by Top 50 Largest Metros Metro Area Median Median Median Active New Listing Median Median Price Price $430,000 1.2 % 1.2 % -13.8 % -18.0 % 41 5 18.3 % -3.3 pp $568,000 -1.2 % -2.0 % 4.7 % -17.1 % 55 15 35.5 % -4.6 pp $377,000 7.8 % 4.8 % -25.0 % -13.7 % 37 1 13.0 % -3.2 pp $297,000 4.0 % 4.7 % 10.5 % -11.0 % 44 8 16.7 % -0.2 pp $844,000 16.4 % 13.1 % -21.3 % -11.0 % 37 3 12.8 % -3.5 pp $260,000 6.0 % 7.5 % -16.8 % -5.4 % 39 3 7.8 % -1.5 pp $430,000 1.1 % 4.9 % -19.0 % -18.9 % 38 2 15.2 % -5.5 pp $385,000 10.0 % 5.2 % -27.6 % -10.5 % 36 -1 12.1 % -4.3 pp $375,000 16.3 % 8.9 % -6.9 % -25.0 % 32 2 10.0 % -3.8 pp $250,000 11.1 % 6.9 % -24.2 % -12.1 % 39 0 14.3 % -2.1 pp $386,000 14.6 % 7.9 % -9.5 % -19.0 % 26 -1 19.5 % 1.0 pp $464,000 0.4 % -1.2 % 2.4 % -13.4 % 42 7 24.8 % -1.6 pp $660,000 3.7 % 4.9 % -9.1 % -9.7 % 35 4 23.9 % -7.0 pp $272,000 0.0 % 1.2 % -24.5 % -15.9 % 36 4 14.1 % -9.3 pp $400,000 7.0 % 6.9 % -28.6 % -14.5 % 37 5 7.0 % -2.4 pp $375,000 -2.0 % -0.8 % 0.0 % -9.4 % 42 4 19.7 % -3.0 pp $337,000 8.0 % 5.7 % 0.3 % -8.4 % 36 1 21.9 % 1.7 pp $428,000 1.8 % 0.8 % -3.7 % 4.0 % 49 9 21.9 % -2.6 pp $435,000 12.3 % 7.7 % -4.1 % -11.9 % 50 4 15.6 % 1.3 pp $457,000 N/A N/A N/A N/A 43 N/A 15.4 % N/A $1,163,000 22.4 % 8.8 % -30.2 % -17.8 % 41 1 10.5 % -8.5 pp $323,000 7.5 % 5.1 % -13.5 % -11.5 % 32 1 16.6 % -3.0 pp $321,000 2.5 % 3.0 % 30.7 % -4.9 % 46 8 20.4 % 3.7 pp $600,000 -0.7 % 4.1 % 0.1 % -7.7 % 62 13 12.3 % -2.4 pp $353,000 6.0 % 8.8 % -20.9 % 6.8 % 29 -3 13.2 % -0.7 pp $452,000 7.7 % 3.5 % -11.1 % -6.6 % 37 0 14.0 % -2.5 pp $583,000 9.1 % 4.4 % 12.6 % -27.2 % 37 11 22.7 % -4.2 pp $339,000 1.7 % 0.9 % 29.2 % -8.3 % 64 15 21.7 % -1.2 pp $717,000 10.3 % 15.4 % -18.4 % -13.5 % 59 5 7.6 % -2.1 pp $340,000 6.7 % 1.8 % 7.7 % -1.4 % 43 3 20.7 % 1.9 pp $459,000 1.3 % 1.0 % -8.8 % -10.3 % 46 7 18.9 % -2.6 pp $350,000 3.1 % 4.9 % -20.6 % -11.8 % 45 1 12.3 % -1.7 pp $538,000 7.6 % -1.2 % -46.9 % N/A 45 8 20.8 % -21.6 pp $250,000 7.5 % 0.6 % -10.5 % -8.4 % 48 5 15.9 % -3.1 pp $638,000 8.1 % 1.3 % -5.4 % -11.9 % 41 5 18.8 % -10.5 pp $550,000 15.8 % 1.2 % -26.6 % -10.8 % 30 -3 7.8 % -4.1 pp $465,000 -4.6 % -1.0 % -15.9 % -20.4 % 40 10 14.1 % -8.7 pp $438,000 13.5 % 7.0 % -5.9 % -7.4 % 39 1 9.4 % -1.1 pp $575,000 -1.8 % 2.6 % -30.1 % -19.5 % 47 3 14.6 % -8.7 pp $250,000 11.1 % 9.3 % -11.5 % -3.0 % 16 -7 9.3 % -1.7 pp $672,000 9.4 % 1.3 % -39.3 % -24.2 % 37 -2 16.2 % -13.5 pp $357,000 -1.6 % 0.1 % 18.4 % -16.2 % 51 12 27.3 % 3.9 pp $1,099,000 22.6 % 12.0 % -44.6 % -17.4 % 33 -3 11.8 % -12.2 pp $1,049,000 0.6 % -0.6 % -31.4 % -20.0 % 33 -3 10.7 % -6.9 pp $1,474,000 6.3 % 1.6 % -42.6 % -4.3 % 27 -10 9.8 % -8.4 pp $799,000 3.2 % 6.6 % -35.3 % -24.7 % 33 -1 14.9 % -7.4 pp $284,000 2.7 % 2.4 % -6.4 % -2.5 % 37 0 13.1 % -1.3 pp $443,000 1.2 % 3.6 % -9.8 % -10.3 % 44 7 22.1 % -5.4 pp $384,000 9.6 % 6.8 % -1.2 % -19.0 % 31 -2 16.2 % -0.7 pp $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 About Realtor.com® Media Contact SOURCE Realtor.com
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.
reductions
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.
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.
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.
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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).
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