Despite a thaw in the market in time for Spring, low inventory is still causing higher prices, creating affordability issues for buyers across the market, according to a new report from Realtor.com.
Realtor.com’s Monthly Housing Trends Report for April found that, compared to 2022, the median listing price grew by 2.5% to $430,000, up 36.5% from 2019. Active listings were up 48.3%, but down 50.5% from 2019. New listings fell 21.3%, and 30.6% from 2019, and pending listings declined 22.5%. Median days on the market rose by 17 days to 49, down 18 days from 2019. The share of active listings with price reductions grew 5.4 percentage points to 12.2%, down 2.2 percentage points from 2019.
Key highlights:
- Active inventory grew in all major regions, with the most growth in the number of homes for sale in the Southern region, up 100.3% compared to the same time last year.
- 42 markets of the 50 largest metros saw active inventory increase compared to last April. Despite high inventory growth compared to last year, most metros still had fewer homes for sale compared to pre-pandemic years.
- Only Austin saw higher levels of inventory (+4.3%) compared to typical 2017–2019 levels, while in Las Vegas, where active inventories were above pre-pandemic level in March, inventories were 8.1% below typical 2017-2019 levels.
- Higher mortgage rates and home prices compared to last year increased the monthly cost of financing 80% of the typical home by roughly $340 (+19%) compared to a year ago. This far outpaces recent rent growth (+2.5%) and inflation (+5%) but the rate of growth is slowing compared to last month’s 39.3% as growth in listing prices and interest rates slowed.
- Large southern metros saw the largest increase in the percentage of homes with price reductions, and 9 saw median list price declines. The greatest price declines were seen in Austin (-8.8%), Las Vegas (-7.1%), and Houston (-4.6%).
- Time on market was lower relative to the national pace in the 50 largest metros, 41 days on average, up 15 days more than last year.
- 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 (+39 days), Kansas City (+32 days), and Austin (+30 days).
Major takeaway:
“A lack of new sellers and homes for sale continues to limit buyers’ choices and home sales. Many sellers are likely future buyers too, which may be why a majority of would-be sellers report feeling ‘locked in’ to their current home because of a low mortgage rate, especially younger homeowners,” said Realtor.com Chief Economist Danielle Hale. “But older seller-buyers, who are likely to have a smaller mortgage balance and built up greater equity, are less likely to report feeling locked-in by a low interest rate and are more likely to report that they need to sell anyway. This likely means that older households will continue to play a prominent role on both sides of the home sale transaction this year.”
Realtor.com’s Executive News Editor Clare Trapasso added,“It’s become increasingly challenging for many people to become homeowners, and longer-term homeowners who have built equity over many years are likely in the best position to sell and buy in today’s market. To get top dollar for their home and set themselves up for success, all sellers still need to make sure their home is in the best possible condition and shows well. That could include making upgrades, investing in necessary repairs, and painting the home. First-time and younger buyers can still win in this market by watching mortgage rates closely, setting online alerts for any new homes coming on the market, and working with an agent who really knows the market and how best to position an offer.”
For the full report, including more in-depth housing metrics on the 50 largest metros, click here.
