In May, home price growth slowed to 0.9% year
over year, as active inventory decreased in 21 out of 50 of the
largest metros
SANTA
CLARA, Calif., June 1, 2023
/PRNewswire/ -- Home prices rose slightly in May, but price growth
slowed to the lowest rate on record since 2016, suggesting home
prices may not see a new peak in 2023, according to the
Realtor.com® Monthly Housing Trends Report released
today. Additionally, home inventory growth continues to slow and is
declining in many metro areas across the country as fewer sellers
list their homes than last year and buyers compete over the
remaining affordable homes for sale.
"April and May are historically popular months to buy, and
typically by this time in the year we've exceeded the prior year's
peak home price. Weakening home price growth for the past 12 months
is increasing the odds that we may not see a new home price peak
this year, for the first time in the history of our listing data,
which dates back to mid-2016, and this is likely welcome news to
homeshoppers," said Danielle Hale,
Chief Economist for Realtor.com®. "Despite stalling
price growth, home listing prices are up slightly compared to last
May, and with rates more than a percentage point higher than a year
ago, buyers continue to face affordability headwinds. The good news
for sellers is that buyers are still out there, and this month's
slower growth in the active inventory of homes for sale indicates
that shoppers are in the market and actively searching for homes
that fit their needs and budget."
What it means for homebuyers, sellers, and the housing
market
A slower housing market means buyers in certain areas
may find they can once again have an offer accepted when putting
less down. A recent report from Realtor.com® found down
payments declined for the first time since the second quarter of
2020, suggesting it's getting harder for buyers to keep up with
costs and that a less competitive housing market may be opening up
opportunities for buyers making somewhat smaller down payments.
Fortunately, there are a number of down payment assistance programs
also available to help buyers, who can search for programs using
this tool on Realtor.com®.
"As buyers' budgets are being stretched to the max, there are
opportunities for negotiation, especially on homes that have been
sitting on the market for a while," said Realtor.com®
Executive News Editor Clare
Trapasso. "They can ask sellers to come down on the price,
make costly repairs, as well as contribute to their closing costs
or buy down their mortgage rates. If they're purchasing new
construction, they can also request upgrades. This can add up to
substantial savings."
May 2023 Housing Metrics –
National
|
Metric
|
Change over May
2022
|
Change over May
2019
|
|
Median listing
price
|
+0.9% (to
$440,000)
|
+38.0 %
|
|
Median listing price
per square foot
|
-0.3% (to
$225)
|
+47.1 %
|
|
Active
listings
|
+21.5 %
|
-50.7 %
|
|
New listings
|
-22.7 %
|
-30.4 %
|
|
Median days on
market
|
+14 days (to 43
days)
|
-9 days
|
|
Share of active
listings with price
reductions
|
+2.6 percentage
points
(to 12.7%)
|
-2.6 percentage
points
|
Home price growth stalls
Home listing prices were
slightly higher in May compared to a year ago, but growth in the
typical asking price of for-sale homes continued to decline to the
low single digits. In addition, the median listing price on a
square foot basis declined compared to last year for the first time
in Realtor.com® data history. At this rate of slowing,
asking prices are likely to decline relative to the previous year
by next month. Despite this trend, home sellers continue to have
high expectations of the housing market and buyers, in some cases,
too high. The number of homes with price reductions – a sign that a
seller needed to adjust pricing to attract a buyer – was higher
than year ago levels but in line with pre-pandemic years.
- The U.S. median list price grew to $441,000 in May, up from $430,000 in April, and down -1.7% from June
2022's record high of $449,000. The
annual growth rate slowed to +0.9% in May, down from April's 2.5%
growth rate, to the lowest price growth in our records since
2016.
- Nationally, the median listing price per square foot declined
(-0.3%) compared to the previous year for the first time in our
data history since 2016.
- Higher mortgage rates and home prices compared to May of last
year increased the monthly cost of financing 80% of the typical
home by roughly $296 (+15.5%)
compared to a year ago.
- Among the 50 largest U.S. metros, 15 out of the largest 50
markets saw their median list price decline. The greatest price
declines were seen in Texas
metros: Austin (-7.3% year over
year), Houston (-5.9%), and
San Antonio (-5.8%).
- Nationally, 12.7% of active listings had their price reduced in
May, up from 10.2% in May of last year. While higher than last
year, the rate is below typical 2017-2019 levels. Large southern
metros saw the largest increase in the percentage of homes with
price reductions, led by Austin,
Texas (+11.9 percentage points year over year), San Antonio, Texas (+9.1 percentage points)
and Oklahoma City, Okla. (+8.7
percentage points).
Inventory tightens as fewer sellers list and buyers compete
over remaining homes
The U.S. supply of active homes for
sales continued to grow in May relative to this time last year, but
slowed for the third month in a row as fewer potential sellers
opted to list their home for sale and as the market lapped the
period of higher inventory growth that started in May 2022. Today's buyers are grappling with low
inventory, but the slowing growth in active inventory in May
indicates that buyers continue to search for and find deals.
Despite sitting on relatively high home equity, sellers are staying
on the sidelines, and the number of newly listed homes remains well
below last year's level. In fact, the pace of new home listings in
May was even lower than in May 2020
when the real estate market was still contending with pandemic-era
closures and restrictions.
- Nationally, the number of active listings grew +21.5% year over
year in May; however, the inventory growth rate continued to slow
for the third month in a row. Both newly listed homes (-22.7%) and
homes under contract (-18.1%), or pending listings, declined year
over year.
- Compared to last year, active inventory decreased in 21 out of
50 of the largest metros. Markets that reported large yearly
declines included San Jose, Calif.
(-35.3%), Sacramento, Calif.
(-27.3%), and Hartford, Conn.
(-26.0%).
- Among the 50 largest metros, active inventory increased 20.8%
over last year, driven exclusively by Southern metros, such as
Nashville, Tenn. (+124.7%);
Austin, Texas (+112.5%), and
San Antonio, Texas (+93.4%).
Despite high inventory growth compared to last year, most Southern
metros still had lower inventory levels compared to pre-pandemic
years.
- On average across the 50 largest metros, no region or metro
area saw year-over-year increases in new listings in May. The South
saw new listing activity decline the least (-20.4%) compared to the
previous year, while they fell 32.9% in the West, 22.9% in the
Northeast, and 22.8% in the Midwest.
More days on market gives buyers time to search for homes and
bargain
In May, the typical home spent two weeks longer on
the market than the same time last year, but a shrinking difference
since January's recent high suggests buyers are out shopping for
homes and competition still exists. That's keeping sellers in a
very good position, with well-priced, updated homes still
attracting buyers and selling more than a week faster than was
common before the pandemic.
- In May, the typical home spent 43 days on market, 14 days
longer than this time last year, but 9 days faster than the
pre-pandemic May 2017-2019 average.
- Across the 50 largest U.S. metros, the typical home spent 37
days on the market, 13 days more than the previous May. This trend
was seen across all regions, with larger metros in the South seeing
the greatest increase (+16 days), followed by the West (+12 days),
Midwest (+9 days) and Northeast (+7 days).
- All of the 50 largest metros saw an increase in time on market
compared to the previous year. Time on market increased the most in
Raleigh (+31 days), Austin (+28 days), and Miami (+27 days).
May 2023 Housing Overview by Top 50 Largest Metros
|
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.
|
$434,000
|
1.0 %
|
-0.3 %
|
25.4 %
|
-22.6 %
|
40
|
10
|
12.0 %
|
2.0 pp
|
|
Austin-Round
Rock-Georgetown, Texas
|
$584,000
|
-7.3 %
|
-7.7 %
|
112.5 %
|
-20.2 %
|
44
|
28
|
29.8 %
|
11.9 pp
|
|
Baltimore-Columbia-Towson, Md.
|
$350,000
|
0.0 %
|
2.9 %
|
-8.4 %
|
-25.4 %
|
36
|
6
|
10.5 %
|
0.8 pp
|
|
Birmingham-Hoover,
Ala.
|
$297,000
|
1.6 %
|
3.1 %
|
40.6 %
|
-9.8 %
|
43
|
12
|
11.7 %
|
3.5 pp
|
|
Boston-Cambridge-Newton, Mass.-N.H.
|
$867,000
|
14.5 %
|
5.8 %
|
-3.6 %
|
-26.2 %
|
23
|
8
|
10.4 %
|
1.0 pp
|
|
Buffalo-Cheektowaga,
N.Y.
|
$253,000
|
5.8 %
|
7.4 %
|
6.9 %
|
-17.4 %
|
30
|
9
|
6.1 %
|
0.6 pp
|
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
$435,000
|
1.1 %
|
1.3 %
|
34.6 %
|
-28.4 %
|
39
|
19
|
11.1 %
|
-0.3 pp
|
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$376,000
|
5.9 %
|
-1.1 %
|
-18.5 %
|
-28.5 %
|
34
|
6
|
8.9 %
|
-0.1 pp
|
|
Cincinnati,
Ohio-Ky.-Ind.
|
$390,000
|
19.9 %
|
8.2 %
|
2.7 %
|
-22.7 %
|
32
|
11
|
8.6 %
|
1.5 pp
|
|
Cleveland-Elyria,
Ohio
|
$237,000
|
9.1 %
|
4.6 %
|
-0.5 %
|
-18.1 %
|
38
|
5
|
8.8 %
|
0.4 pp
|
|
Columbus,
Ohio
|
$394,000
|
12.8 %
|
4.9 %
|
7.3 %
|
-22.1 %
|
22
|
11
|
12.4 %
|
4.0 pp
|
|
Dallas-Fort
Worth-Arlington, Texas
|
$469,000
|
-1.4 %
|
-3.3 %
|
62.9 %
|
-16.2 %
|
37
|
16
|
16.7 %
|
7.5 pp
|
|
Denver-Aurora-Lakewood,
Colo.
|
$682,000
|
-1.8 %
|
3.3 %
|
27.7 %
|
-26.5 %
|
25
|
15
|
16.7 %
|
4.9 pp
|
|
Detroit-Warren-Dearborn, Mich.
|
$267,000
|
-2.4 %
|
-0.1 %
|
-4.9 %
|
-22.4 %
|
30
|
10
|
12.3 %
|
0.7 pp
|
|
Hartford-East
Hartford-Middletown, Conn.
|
$425,000
|
17.2 %
|
4.9 %
|
-26.0 %
|
-16.1 %
|
19
|
4
|
3.8 %
|
-1.7 pp
|
|
Houston-The
Woodlands-Sugar Land, Texas
|
$375,000
|
-5.9 %
|
-3.2 %
|
37.1 %
|
-14.8 %
|
41
|
9
|
16.0 %
|
4.0 pp
|
|
Indianapolis-Carmel-Anderson, Ind.
|
$347,000
|
9.2 %
|
5.6 %
|
31.3 %
|
-22.8 %
|
36
|
11
|
15.6 %
|
5.9 pp
|
|
Jacksonville,
Fla.
|
$426,000
|
-0.4 %
|
-0.9 %
|
67.5 %
|
-25.2 %
|
48
|
21
|
17.1 %
|
7.4 pp
|
|
Kansas City,
Mo.-Kan.
|
$463,000
|
15.7 %
|
10.3 %
|
27.6 %
|
-18.3 %
|
52
|
15
|
9.5 %
|
3.8 pp
|
|
Las
Vegas-Henderson-Paradise, Nev.*
|
$450,000
|
N/A
|
N/A
|
N/A
|
N/A
|
46
|
N/A
|
14.0 %
|
N/A
|
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$1,150,000
|
15.8 %
|
5.9 %
|
-9.8 %
|
-31.5 %
|
39
|
10
|
7.6 %
|
-2.3 pp
|
|
Louisville/Jefferson
County, Ky.-Ind.
|
$324,000
|
9.0 %
|
4.7 %
|
2.4 %
|
-22.1 %
|
31
|
12
|
12.6 %
|
1.7 pp
|
|
Memphis,
Tenn.-Miss.-Ark.
|
$325,000
|
11.1 %
|
3.3 %
|
83.8 %
|
-13.1 %
|
43
|
12
|
15.6 %
|
8.1 pp
|
|
Miami-Fort
Lauderdale-Pompano Beach, Fla.
|
$608,000
|
-2.3 %
|
1.0 %
|
55.2 %
|
-25.1 %
|
63
|
27
|
12.5 %
|
4.3 pp
|
|
Milwaukee-Waukesha,
Wis.
|
$375,000
|
16.3 %
|
9.7 %
|
-23.4 %
|
-24.0 %
|
29
|
4
|
7.6 %
|
0.4 pp
|
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$460,000
|
8.2 %
|
3.6 %
|
-2.1 %
|
-24.4 %
|
31
|
7
|
9.0 %
|
0.8 pp
|
|
Nashville-Davidson-Murfreesboro-Franklin,
Tenn.
|
$580,000
|
5.5 %
|
0.9 %
|
124.7 %
|
-15.4 %
|
30
|
19
|
18.4 %
|
6.2 pp
|
|
New Orleans-Metairie,
La.
|
$345,000
|
-1.1 %
|
0.6 %
|
81.0 %
|
-15.9 %
|
57
|
19
|
20.9 %
|
6.5 pp
|
|
New York-Newark-Jersey
City, N.Y.-N.J.-Pa.
|
$735,000
|
8.9 %
|
14.9 %
|
-10.0 %
|
-25.0 %
|
48
|
10
|
7.8 %
|
-0.2 pp
|
|
Oklahoma City,
Okla.
|
$354,000
|
8.5 %
|
2.1 %
|
65.0 %
|
-23.4 %
|
43
|
14
|
15.4 %
|
8.7 pp
|
|
Orlando-Kissimmee-Sanford, Fla.
|
$450,000
|
0.0 %
|
-0.5 %
|
53.8 %
|
-28.2 %
|
47
|
21
|
14.3 %
|
5.6 pp
|
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
$349,000
|
2.8 %
|
3.1 %
|
-5.9 %
|
-28.8 %
|
44
|
12
|
10.9 %
|
0.7 pp
|
|
Phoenix-Mesa-Chandler,
Ariz.
|
$529,000
|
-3.6 %
|
-5.6 %
|
28.7 %
|
-40.6 %
|
45
|
24
|
19.1 %
|
1.8 pp
|
|
Pittsburgh,
Pa.
|
$238,000
|
-0.7 %
|
-3.9 %
|
3.6 %
|
-21.8 %
|
46
|
9
|
12.9 %
|
0.7 pp
|
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
$639,000
|
7.0 %
|
-1.1 %
|
21.5 %
|
-25.5 %
|
35
|
12
|
13.5 %
|
-0.8 pp
|
|
Providence-Warwick,
R.I.-Mass.
|
$540,000
|
14.3 %
|
7.0 %
|
-10.7 %
|
-23.6 %
|
31
|
10
|
5.7 %
|
-0.9 pp
|
|
Raleigh-Cary,
N.C.
|
$474,000
|
-4.2 %
|
-3.5 %
|
72.7 %
|
-23.2 %
|
43
|
31
|
11.2 %
|
3.9 pp
|
|
Richmond,
Va.
|
$441,000
|
15.6 %
|
8.2 %
|
19.3 %
|
-20.5 %
|
40
|
9
|
6.0 %
|
1.3 pp
|
|
Riverside-San
Bernardino-Ontario, Calif.
|
$580,000
|
-3.2 %
|
0.4 %
|
-1.3 %
|
-32.8 %
|
46
|
18
|
11.0 %
|
-2.5 pp
|
|
Rochester,
N.Y.
|
$265,000
|
19.2 %
|
13.1 %
|
-13.0 %
|
-24.3 %
|
13
|
3
|
6.0 %
|
-1.2 pp
|
|
Sacramento-Roseville-Folsom, Calif.
|
$663,000
|
2.1 %
|
-3.4 %
|
-27.3 %
|
-33.3 %
|
31
|
7
|
11.2 %
|
-5.5 pp
|
|
San Antonio-New
Braunfels, Texas
|
$357,000
|
-5.8 %
|
-2.7 %
|
93.4 %
|
-9.5 %
|
47
|
17
|
19.8 %
|
9.1 pp
|
|
San Diego-Chula
Vista-Carlsbad, Calif.
|
$1,055,000
|
13.8 %
|
5.7 %
|
-25.7 %
|
-36.9 %
|
30
|
8
|
8.8 %
|
-3.0 pp
|
|
San
Francisco-Oakland-Berkeley, Calif.
|
$1,178,000
|
4.8 %
|
-1.7 %
|
-20.0 %
|
-24.2 %
|
31
|
9
|
8.4 %
|
-0.6 pp
|
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
$1,530,000
|
2.2 %
|
0.2 %
|
-35.3 %
|
-37.4 %
|
25
|
8
|
8.2 %
|
-2.0 pp
|
|
Seattle-Tacoma-Bellevue, Wash.
|
$823,000
|
-0.3 %
|
3.1 %
|
-10.8 %
|
-40.7 %
|
29
|
14
|
10.2 %
|
0.7 pp
|
|
St. Louis,
Mo.-Ill.
|
$282,000
|
2.3 %
|
4.7 %
|
2.8 %
|
-19.3 %
|
37
|
7
|
9.1 %
|
2.0 pp
|
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$439,000
|
-0.2 %
|
-0.1 %
|
66.9 %
|
-25.6 %
|
46
|
22
|
17.7 %
|
6.4 pp
|
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
$387,000
|
10.6 %
|
5.9 %
|
-2.5 %
|
-24.3 %
|
29
|
8
|
9.5 %
|
-0.2 pp
|
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
$639,000
|
9.3 %
|
3.2 %
|
-15.6 %
|
-28.7 %
|
30
|
6
|
8.8 %
|
-1 pp
|
|
|
*Some Las Vegas listing
metrics have been excluded while data is under review.
|
Methodology
Realtor.com® housing data as of
May 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).
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@move.com
View original
content:https://www.prnewswire.com/news-releases/realtorcom-may-housing-report-home-price-gains-slow-to-lowest-rate-on-record-301839690.html
SOURCE Realtor.com