Realtor.com® April Housing Report: Lack of Sellers Creates Inventory Woes for Spring Buyers on Top of Higher Home Prices and Rates
In April, active inventory growth slowed (+48.3) for the second month in a row as newly listed homes fell 21.3% year over year
SANTA CLARA, Calif., May 4, 2023 /PRNewswire/ -- The U.S. housing market continues to face strong affordability headwinds, including a low inventory of homes for sale which, while up in April, is still well below pre-pandemic levels as fewer new sellers opt to list their home (-21.3%) compared to last year, according to the Realtor.com® Monthly Housing Trends Report released today. Additionally, while listing prices were up slightly (+2.5%) in April, annual listing price growth has decelerated for 10 months in a row and could decline year over year by later this spring.
"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 Danielle Hale, Chief Economist for Realtor.com®. "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."
Buying before selling, market conditions and repairs are top concerns for sellers
A recent Realtor.com® site survey found one-third of sellers (34.2%) said that buying first was a top concern for them when evaluating whether to sell their home or not. Concerns about overall market conditions, including local demand and not receiving any good offers, was cited by 19% of surveyed respondents, the highest share since 2019, and nearly twice as high as a year ago. In addition, hoping to put their best foot forward in today's market, sellers say having to get their home market ready is also a top concern, especially given that high inflation rates are leading to higher improvement and household furnishing costs, and prices for those goods are rising more than prices overall.
"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," said Realtor.com®'s Executive News Editor Clare Trapasso. "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."
April 2023 Housing Metrics – National
Metric | Change over April 2022 | Change over April 2019 |
Median listing price | +2.5% (to $430,000) | +36.5 % |
Active listings | +48.3 % | -50.5 % |
New listings | -21.3 % | -30.6 % |
Median days on market | +17 days (to 49 days) | -10 days |
Share of active listings with price reductions | +5.4 percentage points (to 12.2%) | -2.2 percentage points |
Lack of sellers and newly listed homes remains a challenge for potential buyers
In April, the U.S. supply of active listings was up compared to last year, but rose at a slower pace for the second month in a row, and despite the increase, the inventory of homes for sale continues to be 50.5% lower than April 2019 pre-pandemic level. A declining number of newly listed homes remains a top challenge for the market, as many potential sellers are choosing to sit on the sidelines rather than list their home for sale. That means hopeful homebuyers have fewer options for their next home and will likely have to continue narrowing their list of must-haves to find success in today's market.
- In April, the U.S. inventory of active listings grew 48.3% year over year; however, the inventory growth rate continued to slow for the second month in a row. 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.
- New listings declined 21.3% nationwide in April and in 49 of the 50 largest markets compared with this time last year; only San Antonio saw the number of newly listed homes increase compared to last April (+0.4%). Pending listings, or homes under contract with a buyer, declined 22.5% year over year.
- Among the 50 largest U.S. metros, 42 markets 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.
- In April, only Austin saw higher levels of inventory (+4.3%) in April 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 in April.
Home prices rise, though more slowly, as spring homebuying season gets underway
In April, national home listing prices grew slightly from last year, following their usual seasonal uptick at the start of the spring homebuying season, but home price growth slowed to the lowest rate since April 2020. Many sellers are continuing to list their homes at higher prices as listing prices generally continue to rise, leading to a higher share of homes with price reductions in April compared to last year; however, the level is still below what was typical before the pandemic.
- The national median list price grew to $430,000 in April, up from $424,000 in March. Annual list price growth slowed to 2.5% year over year, the lowest rate of growth since April 2020.
- Higher mortgage rates and home prices compared to April of last year increased the monthly cost of financing 80% of the typical home by roughly $340 (+19.0%) compared to a year ago. This far outpaces recent rent growth (+2.5%) and inflation (+5.0%) but the rate of growth is slowing compared to last month's 39.3% as growth in listing prices and interest rates slowed.
- In April, 12.2% of active listings had their price reduced, up from 6.8% in April 2022.
- Among the 50 largest U.S. metros, large southern metros saw the largest increase in the percentage of homes with price reductions, and 9 saw median list price declines in April. The greatest price declines were seen in Austin (-8.8% year-over-year), Las Vegas (-7.1%), and Houston (-4.6%).
Time on market rises as the pace of buying remains low
The time it takes to sell a home has continued to trend down since January, consistent with seasonal trends and an uptick in buying as spring approaches, but homes in April still spent significantly more time on the market compared to the previous two years. Despite it taking more than two weeks longer to sell a home in April compared to the same time last year, today's sellers are still likely to spend less time finding a buyer for their home than they would have pre-pandemic.
- The typical home spent 49 days on market in April, 17 days longer than this time last year, but still 12 days faster than the pre-pandemic April 2017-2019 average.
- In April, across the 50 largest U.S. metros, time on market was lower relative to the national pace, 41 days on average, up 15 days more than the previous April.
- 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).
April 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) |
$425,000 | 2.4 % | -0.5 % | 53.6 % | -21.8 % | 45 | 13 | 11.8 % | 4.2 pp | |
$570,000 | -8.8 % | -10.4 % | 258.0 % | -10.1 % | 45 | 30 | 26.8 % | 16.0 pp | |
$340,000 | 3.1 % | 2.6 % | 6.5 % | -26.3 % | 38 | 8 | 9.4 % | 2.2 pp | |
$285,000 | 2.2 % | 5.1 % | 51.1 % | -17.4 % | 48 | 16 | 12.1 % | 6.2 pp | |
$839,000 | 12.0 % | 3.5 % | 9.7 % | -32.9 % | 26 | 10 | 9.2 % | 3.2 pp | |
$250,000 | 11.1 % | 9.4 % | 12.8 % | -17.1 % | 43 | 14 | 5.6 % | 2.1 pp | |
$425,000 | 2.9 % | 0.8 % | 85.3 % | -15.0 % | 40 | 22 | 11.1 % | 2.2 pp | |
$369,000 | 5.5 % | -3.4 % | -4.5 % | -31.2 % | 39 | 8 | 8.3 % | 2.1 pp | |
$385,000 | 20.3 % | 5.7 % | 25.1 % | -18.7 % | 35 | 7 | 7.3 % | 2.3 pp | |
$225,000 | 15.4 % | 7.6 % | 15.0 % | -23.4 % | 44 | 7 | 9.4 % | 3.6 pp | |
$385,000 | 16.9 % | 5.5 % | 20.3 % | -24.1 % | 24 | 13 | 10.5 % | 4.5 pp | |
$460,000 | 4.3 % | -1.5 % | 130.9 % | -5.2 % | 40 | 17 | 15.8 % | 9.3 pp | |
$679,000 | 0.4 % | 0.5 % | 68.5 % | -26.5 % | 25 | 20 | 13.6 % | 7.0 pp | |
$250,000 | 0.0 % | -0.6 % | 17.5 % | -16.6 % | 39 | 15 | 11.6 % | 1.8 pp | |
$400,000 | 14.3 % | 4.0 % | -18.5 % | -25.7 % | 24 | 8 | 4.4 % | 0.0 pp | |
$372,000 | -4.6 % | -2.6 % | 55.9 % | -11.8 % | 44 | 8 | 13.3 % | 4.2 pp | |
$330,000 | 10.0 % | 4.0 % | 62.0 % | -1.2 % | 39 | 9.5 | 11.6 % | 5.4 pp | |
$410,000 | 0.0 % | -0.3 % | 124.6 % | -9.3 % | 52 | 23 | 17.0 % | 10.4 pp | |
$460,000 | 21.1 % | 11.7 % | 50.2 % | -21.1 % | 71 | 32 | 9.0 % | 4.9 pp | |
$460,000 | -7.1 % | -5.9 % | 55.4 % | -30.9 % | 50 | 26 | 17.9 % | 7.5 pp | |
$1,100,000 | 12.2 % | 4.3 % | 17.4 % | -29.6 % | 44 | 15 | 8.2 % | 2.1 pp | |
$320,000 | 10.3 % | 2.2 % | 24.5 % | -12.0 % | 36 | 14 | 11.6 % | 4.2 pp | |
$325,000 | 31.7 % | 14.3 % | 102.6 % | -12.6 % | 49 | 16 | 14.5 % | 7.9 pp | |
$605,000 | 4.8 % | 2.6 % | 82.0 % | -18.1 % | 66 | 23 | 12.7 % | 7.4 pp | |
$365,000 | 21.7 % | 9.7 % | -16.9 % | -28.7 % | 31 | 3 | 6.3 % | -0.7 pp | |
$450,000 | 7.7 % | 16.9 % | 14.4 % | -20.9 % | 37 | 8 | 7.5 % | 2.6 pp | |
$564,000 | 7.4 % | 0.0 % | 192.9 % | -0.7 % | 32 | 21 | 18.4 % | 11.0 pp | |
$340,000 | -2.6 % | 0.1 % | 97.7 % | -18.8 % | 57 | 18 | 19.6 % | 8.5 pp | |
$700,000 | 6.1 % | 8.8 % | -2.4 % | -24.5 % | 54 | 11 | 7.5 % | 1.6 pp | |
$353,000 | 13.3 % | 6.6 % | 103.7 % | -13.2 % | 47 | 14 | 14.9 % | 9.0 pp | |
$441,000 | 2.7 % | 0.0 % | 109.5 % | -19.1 % | 52 | 21 | 14.1 % | 7.9 pp | |
$339,000 | 4.4 % | 3.3 % | 9.9 % | -26.9 % | 46 | 10 | 11.0 % | 3.2 pp | |
$519,000 | -1.2 % | -4.7 % | 121.3 % | -29.3 % | 51 | 27 | 21.4 % | 11.6 pp | |
$225,000 | 0.0 % | -3.9 % | 26.0 % | -18.2 % | 47 | 7 | 12.2 % | 3.5 pp | |
$629,000 | 7.5 % | -1.8 % | 51.1 % | -28.7 % | 37 | 10 | 10.9 % | 0.4 pp | |
$530,000 | 11.6 % | 7.3 % | 10.5 % | -28.4 % | 36 | 11 | 5.4 % | 1.2 pp | |
$465,000 | -2.4 % | -4.7 % | 183.2 % | -11.4 % | 50 | 39 | 9.7 % | 4.7 pp | |
$421,000 | 12.9 % | 8.5 % | 36.2 % | -14.7 % | 42 | 8 | 6.1 % | 3.0 pp | |
$569,000 | -4.2 % | 0.1 % | 35.4 % | -34.9 % | 53 | 24 | 11.1 % | 2.7 pp | |
$265,000 | N/A | N/A | -1.5 % | -24.9 % | 17 | 6 | 5.2 % | -0.3 pp | |
$660,000 | 1.7 % | -3.8 % | -7.6 % | -38.3 % | 36 | 11 | 8.8 % | -1.6 pp | |
$354,000 | -1.7 % | -2.0 % | 138.2 % | 0.4 % | 56 | 23 | 16.8 % | 9.8 pp | |
$1,000,000 | 11.1 % | 5.9 % | 1.1 % | -39.4 % | 34 | 11 | 7.2 % | 0.6 pp | |
$1,150,000 | 4.7 % | -1.5 % | -1.6 % | -33.3 % | 32 | 9 | 8.3 % | 2.9 pp | |
$1,525,000 | 6.0 % | 3.1 % | -2.5 % | -39.2 % | 27 | 11 | 7.0 % | 3.3 pp | |
$825,000 | 3.1 % | 4.3 % | 43.4 % | -35.3 % | 31 | 14 | 8.4 % | 3.9 pp | |
$285,000 | 5.6 % | 4.5 % | 15.1 % | -18.9 % | 43 | 7 | 9.0 % | 2.8 pp | |
$410,000 | -3.1 % | -1.7 % | 151.7 % | -12.8 % | 50 | 23 | 18.3 % | 11.6 pp | |
$384,000 | 13.1 % | 6.9 % | 17.0 % | -26.2 % | 30 | 9 | 9.2 % | 2.6 pp | |
$624,000 | 10.4 % | 2.1 % | 5.1 % | -31.8 % | 33 | 6 | 7.4 % | 1.1 pp |
*Some Rochester listing metrics have been excluded while data is under review.
Methodology
Realtor.com® housing data as of April 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® .
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SOURCE Realtor.com
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