Inventory Rises at Record-Breaking Speed
While home shoppers had 30.7% more actively-listed options than last year in July, the affordability crunch continues to drive demand from out-of-state buyers
SANTA CLARA, Calif., Aug. 9, 2022 /PRNewswire/ — The inventory recovery accelerated in July, as active listings increased at record-fast1 annual pace (+30.7%) for the third month in a row, according to the Realtor.com® Monthly Housing Trends Report released today. Although buyers had more for-sale home options in July, competition remained largely in sellers’ favor, with listing prices near all-time highs and homes selling more quickly than pre-COVID.
“The U.S. housing market continues to move toward more evenly balanced supply and demand compared to the 2021 frenzy. Our July data shows elevated mortgage rates left many buyers tightening their budgets and sellers responding with price reductions, while home shoppers who kept searching saw more available options,” said Danielle Hale, Chief Economist for Realtor.com®. “At the same time, new listings declined in July, suggesting that some prospective sellers are wondering what recent market shifts mean for their plans to list. But data indicates that homeowners grappling with this decision are still in a good position in many markets, with buyer interest keeping well-priced homes selling quickly. Plus, many sellers have a substantial equity cushion to leverage, thanks to the past decade of rising prices. Whether or not they take advantage of these opportunities will be key to inventory trends moving forward.”
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July 2022 Housing Metrics – National
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|
Metric |
Change over July 2021 |
Change over July 2019 |
|
Median listing price |
16.6% (to $449,000) |
39.5 % |
|
Active listings |
30.7 % |
-44.4 % |
|
New listings |
-2.8 % |
-3.4 % |
|
Median days on market |
-2 days (to 35 days) |
-25 days |
Inventory recovery accelerates despite new seller setbacks
Between supply and demand trends, July data indicates that softening buyer interest is the bigger driver of accelerated inventory improvements. With typical monthly mortgage payments now 1.5 times higher than in July 2021, recent home sales data shows that many buyers are putting their plans on pause, which is giving active listings room to grow. However, the shift in market conditions seems to be having the opposite effect on seller activity, with new listings declining for the first time since March. This suggests that some homeowners are reconsidering their plans to list in light of trends like declining numbers of homes under contract. Despite the new seller dip, active listings grew at a record-fast pace for the third straight month in July, further signaling a real estate refresh on the horizon for 2022 buyers.
- In July, the U.S. inventory of active listings increased 30.7% year-over-year, faster than ever before in Realtor.com®‘s data history, building on record-breaking paces in June (+18.7%) and in May (+8.0%). These continued improvements are partly due to ongoing annual declines in pending listings, which were bigger in July (-19.4%) than in June (-16.3%).
- Nationally, newly listed homes were down 2.8% compared to July 2021, with the biggest drops registered in the northeast (-14.3%) and midwest (-11.0%). With northern regions less equipped for scorching temperatures, these trends suggest that recent record-breaking heat waves may also have played a role in July’s new seller pullback.
- Relative to the national rate, active inventory grew at a faster annual pace (+41.0%) across the 50 largest U.S. metros in July, on average. Forty-five markets posted active listings gains, led by Phoenix (+158.7%), Austin, Texas (+154.5%) and Raleigh, N.C. (+137.5%).
- More new sellers entered the market than last year in 13 of the biggest metros, with new listings jumping most significantly in Las Vegas (+37.6%), Nashville, Tenn. (+37.1%) and Oklahoma City (+28.6%).
Buyer competition remains fierce, but shows early signs of cooling
July’s new listings setback suggests that some sellers may feel they have missed their opportunity to take advantage of favorable market conditions. On the one hand, the rise in available for-sale home options has resulted in a more buyer-friendly market relative to last year. Asking price growth overall and per square foot both continued to moderate in July, while the share of sellers making price reductions increased. On the other hand, competitive conditions remained largely in sellers’ favor in July, with home prices holding near all-time highs and time on market still significantly lower than pre-COVID levels.
- The U.S. median listing price came in just $1,000 shy of June’s all-time high in July ($449,000), up 16.6% year-over-year. On a square foot basis, year-over-year asking price growth moderated slightly in July (+15.5%) from the June pace (+16.2%).
- In early signs of potential softening demand for higher-priced homes, yearly growth in pending listing prices was smaller in July (+12.4%) than in June (+13.9%), marking the third consecutive month of deceleration. Additionally, 19.1% of homes had their price reduced in July, up from 9.4% in 2021 and surpassing the typical 2019 share (18.0%).
- Asking prices increased year-over-year in 47 of the 50 largest metros, led by Miami (+36.2%), Memphis, Tenn. (+32.7%), and Orlando, Fla. (+28.4%), and declined in just three markets: Rochester, N.Y. (-3.1%), Pittsburgh (-3.1%) and Cincinnati (-2.9%).
- The typical home spent 35 days on the market in July, down two days year-over-year and 26 days from the 2017-2019 average. Time on market was fastest year-over-year in Miami (-16 days), Orlando (-6 days) and Tampa, Fla. (-6 days).
- In 24 metros, time on market slowed from the July 2021 pace, most significantly in Austin (+11 days), Denver (+8 days) and Riverside, Calif. (+7 days).
Spotlight On: Affordability crunch drives out-of-state demand from still-eager buyers
Between rising housing costs adding to demand for affordability and increased adoption of remote work policies enabling some Americans to relocate, multiple trends are motivating home shoppers to search further from where they currently live. New research illustrates how rising buyer interest in relocating may be one contributing factor behind July’s still-hot competition for homes in many areas of the country, with key findings from Realtor.com®‘s Q2-2022 Cross-Market Demand Report including:
- From April-June, 53% of listings views on Realtor.com® came from users located outside of the listing’s metro, up from 48% in Q1 and a new all-time high.
- Regionally, the Northeast posted the biggest yearly increase in views from out-of-market users, up 6.8 percentage points to 45.9%. This could be a potential contributor to the Northeast’s July inventory trends, as its yearly increase in for-sale homes (+3.0%) was smaller than any other region (Midwest: +10.2%; South: +51.6%; West: +68.9%).
- Among the top 10 metros attracting out-of-market views, eight offered more affordable listing prices than the Q2 national median ($440,650), including El Paso, Texas ($281,642), where 62.1% of inbound listing viewers were from a different market.
- At the state level, 37% of home shopper views to listings came from out-of-state in Q2, higher than in Q1 (36%) and the typical 2018-2020 share (29%). The fastest-growing destinations for out-of-state buyers year-over-year, by percentage points, were New Jersey (+12.7), Nebraska (+11.5) and Maryland (+11.3).
“Our analysis highlights how home shoppers are prioritizing affordability in the face of financial challenges, but also the variety of reasons that Americans are taking advantage of opportunities to relocate. People are eager to move to new areas offering relatively lower living expenses in the face of high inflation, more outdoor recreation, jobs in different cities, working for their old office from home in a new locale, and more. As a result, we’ve seen Cross-Market Demand increase in every quarter since 2020 at the peak of pandemic lockdowns, a marked shift and one to keep an eye on as Americans progress further into the new normal,” said Joel Berner, Senior Economic Research Analyst for Realtor.com®.
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July 2022 Housing Metrics – 50 Largest U.S. Metro Areas
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|
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 |
Price Reduced Share |
Price Reduced Share Y-Y |
|
Atlanta-Sandy Springs-Roswell, Ga. |
$435,000 |
8.8 % |
10.3 % |
45.3 % |
-5.7 % |
29 |
-3 |
19.5 % |
10.8 % |
|
Austin-Round Rock, Texas |
$598,000 |
11.3 % |
11.7 % |
154.5 % |
7.9 % |
29 |
11 |
40.6 % |
27.8 % |
|
Baltimore-Columbia-Towson, Md. |
$360,000 |
3.1 % |
4.1 % |
2.6 % |
-22.2 % |
35 |
1 |
17.2 % |
6.4 % |
|
Birmingham-Hoover, Ala. |
$297,000 |
10.1 % |
13.6 % |
29.5 % |
-5.4 % |
34 |
-1 |
16.4 % |
9.0 % |
|
Boston-Cambridge-Newton, Mass.-N.H. |
$740,000 |
9.2 % |
1.4 % |
10.0 % |
-11.8 % |
28 |
-2 |
17.7 % |
5.4 % |
|
Buffalo-Cheektowaga-Niagara Falls, N.Y. |
$250,000 |
5.3 % |
6.4 % |
18.7 % |
-5.6 % |
31 |
2 |
8.4 % |
2.6 % |
|
Charlotte-Concord-Gastonia, N.C.-S.C. |
$430,000 |
10.3 % |
13.7 % |
69.7 % |
18.8 % |
33 |
6 |
18.4 % |
5.4 % |
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis. |
$359,000 |
2.6 % |
1.6 % |
-8.2 % |
-18.2 % |
31 |
-5 |
15.0 % |
3.8 % |
|
Cincinnati, Ohio-Ky.-Ind. |
$325,000 |
-2.9 % |
2.0 % |
6.7 % |
-3.4 % |
29 |
-2 |
12.6 % |
4.3 % |
|
Cleveland-Elyria, Ohio |
$220,000 |
3.8 % |
9.5 % |
3.0 % |
-6.7 % |
36 |
-1 |
15.0 % |
4.9 % |
|
Columbus, Ohio |
$345,000 |
15.0 % |
12.1 % |
17.9 % |
-15.6 % |
22 |
6 |
19.8 % |
7.1 % |
|
Dallas-Fort Worth-Arlington, Texas |
$475,000 |
20.3 % |
17.0 % |
81.2 % |
11.6 % |
29 |
-1 |
27.0 % |
16.8 % |
|
Denver-Aurora-Lakewood, Colo. |
$650,000 |
8.3 % |
5.3 % |
70.4 % |
-5.6 % |
24 |
8 |
30.0 % |
18.8 % |
|
Detroit-Warren-Dearborn, Mich. |
$280,000 |
0.9 % |
4.3 % |
32.2 % |
-3.9 % |
28 |
5 |
23.2 % |
9.5 % |
|
Hartford-West Hartford-East Hartford, Conn. |
$380,000 |
11.9 % |
18.8 % |
-17.3 % |
-21.6 % |
28 |
-1 |
9.4 % |
1.0 % |
|
Houston-The Woodlands-Sugar Land, Texas |
$393,000 |
7.3 % |
9.2 % |
24.7 % |
-1.6 % |
35 |
-1 |
21.1 % |
9.0 % |
|
Indianapolis-Carmel-Anderson, Ind. |
$325,000 |
16.1 % |
14.2 % |
39.1 % |
-5.1 % |
32 |
-4 |
18.4 % |
8.0 % |
|
Jacksonville, Fla. |
$435,000 |
24.2 % |
21.9 % |
58.7 % |
-0.2 % |
35 |
-2 |
21.0 % |
13.2 % |
|
Kansas City, Mo.-Kan. |
$395,000 |
19.7 % |
13.4 % |
36.4 % |
-2.5 % |
39 |
1 |
13.8 % |
6.2 % |
|
Las Vegas-Henderson-Paradise, Nev. |
$484,000 |
18.0 % |
19.9 % |
83.3 % |
37.6 % |
28 |
3 |
43.0 % |
28.6 % |
|
Los Angeles-Long Beach-Anaheim, Calif. |
$950,000 |
0.1 % |
4.6 % |
36.5 % |
-13.8 % |
30 |
-3 |
19.6 % |
12.5 % |
|
Louisville/Jefferson County, Ky.-Ind. |
$300,000 |
11.1 % |
8.2 % |
22.5 % |
-3.4 % |
25 |
2 |
18.0 % |
7.2 % |
|
Memphis, Tenn.-Miss.-Ark. |
$318,000 |
32.7 % |
27.1 % |
56.4 % |
-1.9 % |
31 |
-5 |
14.9 % |
8.3 % |
|
Miami-Fort Lauderdale-West Palm Beach, Fla. |
$625,000 |
36.2 % |
22.0 % |
1.3 % |
1.3 % |
42 |
-16 |
14.8 % |
7.8 % |
|
Milwaukee-Waukesha-West Allis, Wis. |
$360,000 |
23.1 % |
13.0 % |
-5.7 % |
-13.2 % |
30 |
1 |
13.6 % |
-0.4 % |
|
Minneapolis-St. Paul-Bloomington, Minn.-Wis. |
$420,000 |
15.1 % |
7.6 % |
5.0 % |
-17.6 % |
33 |
1 |
14.3 % |
5.9 % |
|
Nashville-Davidson–Murfreesboro–Franklin, Tenn. |
$550,000 |
23.3 % |
15.1 % |
121.9 % |
37.1 % |
22 |
5 |
26.8 % |
14.6 % |
|
New Orleans-Metairie, La. |
$345,000 |
0.6 % |
2.0 % |
23.4 % |
-19.2 % |
42 |
-2 |
22.0 % |
10.4 % |
|
New York-Newark-Jersey City, N.Y.-N.J.-Pa. |
$699,000 |
12.3 % |
16.2 % |
4.3 % |
-10.0 % |
51 |
2 |
10.9 % |
2.0 % |
|
Oklahoma City, Okla. |
$317,000 |
10.6 % |
16.8 % |
48.0 % |
28.6 % |
38 |
2 |
14.8 % |
4.0 % |
|
Orlando-Kissimmee-Sanford, Fla. |
$464,000 |
28.4 % |
22.6 % |
67.7 % |
4.2 % |
31 |
-6 |
21.8 % |
11.8 % |
|
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. |
$345,000 |
6.2 % |
7.5 % |
2.4 % |
-19.5 % |
40 |
-1 |
15.5 % |
5.0 % |
|
Phoenix-Mesa-Scottsdale, Ariz. |
$525,000 |
11.1 % |
14.6 % |
158.7 % |
9.2 % |
30 |
1 |
42.6 % |
31.8 % |
|
Pittsburgh, Pa. |
$240,000 |
-3.1 % |
1.0 % |
3.4 % |
-13.9 % |
40 |
1 |
15.8 % |
3.9 % |
|
Portland-Vancouver-Hillsboro, Ore.-Wash. |
$600,000 |
6.3 % |
7.2 % |
51.0 % |
-9.4 % |
31 |
-2 |
28.2 % |
15.6 % |
|
Providence-Warwick, R.I.-Mass. |
$480,000 |
11.7 % |
9.9 % |
10.9 % |
-9.0 % |
29 |
-1 |
11.2 % |
5.7 % |
|
Raleigh, N.C. |
$495,000 |
21.2 % |
16.6 % |
137.5 % |
15.9 % |
23 |
5 |
21.2 % |
13.2 % |
|
Richmond, Va. |
$392,000 |
12.5 % |
10.3 % |
4.0 % |
-7.3 % |
36 |
-2 |
9.8 % |
3.4 % |
|
Riverside-San Bernardino-Ontario, Calif. |
$598,000 |
10.7 % |
13.3 % |
76.5 % |
-8.8 % |
34 |
7 |
23.3 % |
16.5 % |
|
Rochester, N.Y. |
$235,000 |
-3.1 % |
4.0 % |
-5.8 % |
-20.8 % |
17 |
1 |
12.3 % |
1.9 % |
|
Sacramento–Roseville–Arden-Arcade, Calif. |
$629,000 |
5.4 % |
6.5 % |
72.3 % |
-12.0 % |
30 |
3 |
30.9 % |
19.7 % |
|
San Antonio-New Braunfels, Texas |
$390,000 |
16.4 % |
12.7 % |
68.3 % |
13.2 % |
33 |
-2 |
19.9 % |
10.2 % |
|
San Diego-Carlsbad, Calif. |
$900,000 |
9.8 % |
11.9 % |
45.4 % |
-11.7 % |
27 |
1 |
25.4 % |
16.8 % |
|
San Francisco-Oakland-Hayward, Calif. |
$1,099,000 |
10.0 % |
6.0 % |
51.2 % |
-18.6 % |
30 |
2 |
18.4 % |
12.0 % |
|
San Jose-Sunnyvale-Santa Clara, Calif. |
$1,400,000 |
12.0 % |
7.5 % |
42.8 % |
-21.7 % |
28 |
0 |
21.0 % |
15.0 % |
|
Seattle-Tacoma-Bellevue, Wash. |
$795,000 |
14.9 % |
6.7 % |
103.8 % |
3.8 % |
28 |
-2 |
23.9 % |
18.0 % |
|
St. Louis, Mo.-Ill. |
$279,000 |
9.4 % |
8.4 % |
0.2 % |
-15.1 % |
39 |
1 |
13.8 % |
4.7 % |
|
Tampa-St. Petersburg-Clearwater, Fla. |
$440,000 |
25.7 % |
20.5 % |
91.9 % |
18.2 % |
29 |
-6 |
26.5 % |
16.8 % |
|
Virginia Beach-Norfolk-Newport News, Va.-N.C. |
$360,000 |
14.7 % |
11.5 % |
-6.7 % |
-16.1 % |
25 |
0 |
17.6 % |
6.3 % |
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va. |
$580,000 |
13.3 % |
2.2 % |
5.4 % |
-21.5 % |
31 |
0 |
17.6 % |
7.4 % |
Methodology
Realtor.com® housing data as of July 2022. Listings include the active inventory of existing single-family homes and condos/townhomes/rowhomes/co-ops for the given level of geography; new construction is excluded unless listed via an MLS.
Q2 2022 Cross-Market Demand Report: This release focuses on year-over-year trends in prospective buyer demand from out of state, nationally and in the 100 largest markets, based on Realtor.com®‘s Cross-Market Demand Report for 2022 Q2 (April-June 2022), which analyzes online traffic trends for for-sale properties on Realtor.com®. Please note: Due to a methodology update with this Q1 Report, the definitions of out-of-market/out-of-state activity changed from Q1 2022, resulting in historical revisions that are not reflected in the Q1 Report but are captured in the Q2 Report and reports going forward.
About Realtor.com®
Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of 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
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1 Based on Realtor.com® year-over-year listing price data history going back to July 2017.
SOURCE Realtor.com
