July 2023 Housing Market Trends Report
- The number of homes actively for sale decreased by 6.4% compared to last year.
- The total number of unsold homes, including homes that are under contract, decreased by 9.1% compared to last year.
- Home sellers were less active this July, with 20.8% fewer homes newly listed for sale compared to last year.
- The median price of homes for sale decreased by -0.9% annually in July, the second month in a row that listing prices decreased on a year-over-year basis.
- Homes spent 45 days on the market, which is 11 days longer than last year but still shorter than before the COVID-19 pandemic.
According to Realtor.com®’s July housing data, the nation’s median list price declined compared to the same time last year for the second month in a row and homes listings continue to spend more time on the market than last July. However, sellers are still on the sidelines, locked-in to lower interest rates with low expectations of rates improving significantly over the next year. The lack of newly listed homes has contributed to a renewed inventory crunch, as July saw fewer homes on the market compared to last year for the first time in several months.
The Home Listing Inventory Crunch Continued in July
There were 6.4% fewer homes actively for sale in July compared to the same time in 2022. After active inventory growth slowed for four months in a row, in July, active inventory declined compared to the previous year for the first time since April 2022. Last year, inventory increased a whopping 20.6% between June and July as the housing market began to slow. This year, while active inventory still grew at a more normal seasonal pace of 5.4% above the previous month, 45,000 fewer homes were available to buy on a typical day in July compared to one year ago.
The total number of homes for sale, including homes that were under contract but not yet sold, decreased by 9.1% compared to last year. This is the third month in a row that total listings have declined on a year-over-year basis.
The number of homes under contract (pending listings) declined by 12.6% compared to the same time last year. This is lower than June’s 16.7% decline and much improved from December’s peak decline (-36.9% year-over-year). While the gap in pending listings compared to last year has been improving, this is primarily due to pending listings declining more precipitously last year as buyers- faced with rising mortgage rates and all-time high listing prices- pulled back sharply. Existing home sales, while still exceeding the low 4.0 million sales-per-year pace seen in January, declined 3.3% on an annualized basis from May to June.
Seller listing activity remains muted as newly listed homes continued to decline in July compared to the previous year, by 20.8%. In June, home selling sentiment as measured by Fannie Mae’s Home Purchase Sentiment Index (HPSI) declined, as the net percentage of respondents who say it is a good time to sell a home decreased by 3 percentage points compared to May. This was spurred by a declining percentage of respondents believing that mortgage rates would go down in the next 12 months (from 19% to 16%) and a declining share of respondents who believe that home prices will go up in the next 12 months (from 39% to 36%). Potential home-sellers, locked-in to previously low rates and not yet confident that mortgage rates will decline, are continuing to sit on the sidelines, contributing to a renewed inventory crunch.
The number of homes for sale in the 50 largest metro areas in the U.S. decreased by 12.0% compared to last year and inventory in this group of metro areas as a whole is 46.4% below pre-pandemic levels. Among larger metros, the South remains the only region with growing inventory, up by 2.8% year-over-year. Large metros in all the other three regions saw declining annual growth in active inventory. The inventory of homes for sale in the Midwest declined by 14.5%, and it was less than half of pre-pandemic levels (down 52.6%). In the West, large metro inventory declined by 33.4% compared to last year and it was 42.0% below pre-pandemic levels. Inventory declined by 21.1% year-over-year in the Northeast where it was 61.8% below pre-pandemic levels.
The Northeast saw newly added listings decline the least, by 17.7% compared to the previous year, while they declined by 18.4% in the Midwest, 19.9% in the South, and 28.8% in the West. In all regions newly-listed homes remained well below the typical levels seen in 2017 to 2019.
Inventory decreased in 38 out of 50 of the largest metros compared to last year. However, some Southern metros still saw significant inventory growth such as New Orleans (+39.6%), San Antonio (34.5%) and Memphis (33.2%). Despite higher inventory growth compared to last year, most southern metros still had a lower level of inventory when compared to pre-pandemic years. In fact, among the 50 largest metro areas only Austin (+3.7%) saw higher levels of inventory in July compared to typical 2017 to 2019 levels. In Austin, this increase in inventory over pre-pandemic periods is largely due to homes spending more time on the market compared to 2017 to 2019 timing (+2 days). New listing activity in Austin is still down 13.6% compared to pre-pandemic levels.
In July, none of the 50 largest metro areas saw new listings increase over the previous year. Declines were greatest in Phoenix (-44.3%) Seattle (-38.4%) and San Jose (-35.3%).
Home Listings Are up for Longer Compared to Last Year, but Still Shorter Than Pre-pandemic Times
The typical home spent 45 days on the market this July which is 11 days longer than the same time last year, but homes still spent 12 fewer days on the market this July than they did in the average July from 2017 to 2019. In other words, in most areas the housing market continues to move much faster than it did in the pre-pandemic era despite significant slowing from the frenzied pace of the past couple years.
In the 50 largest metropolitan areas in the United States, the typical home spent 39 days on the market, 8 days more than the previous July. This trend was seen across all regions, with larger metros in the South seeing the greatest increase (+12 days), followed by the West (+6 days), Northeast (+6 days) and Midwest (+5 days).
Time on market increased in 47 of the 50 largest metro areas. Time on market increased the most in Miami (+24 days), Austin (+20 days), San Antonio (+19 days), and Raleigh (+19 days). However, only seven predominantly Western markets saw homes spend more time on the market than typical 2017 to 2019 timing. Seattle (+5 days) and Kansas City (+3 days) saw the greatest increase in time on market compared to average 2017 to 2019 pacing, while in Buffalo, Los Angeles, Austin, Portland and San Francisco homes spent 2 days more on the market than typical pre-pandemic periods.
Home Listing Prices Decline but Mortgage Rates Keep Purchase Costs High
The national median list price dropped slightly to $440,000 down from $445,000 in June and down on an annual basis for a second month (-0.9%). The median list price has also dropped 2.0% from a record high of $449,000 in June 2022. This mirrors trends in the median home sales price which shrank on an annual basis for the fifth month in a row in June but the rate of decline improved slightly (to -0.9%). In July, the median listing price on a square foot basis also continued to decline compared to last year, dipping for the third month in a row, by 0.9%.
However, higher mortgage rates compared to July of last year increased the monthly cost of financing 80% of the typical home by roughly $346 (+17.5%) compared to a year ago. This far outpaces wage growth (+4.7%) and inflation (+3.0%) and has increased since last month’s growth rate of 12.6% as mortgage rates resumed their rise.
The percentage of homes with price reductions decreased from 19.1% in July of last year to 15.5% this year. The share of price reductions remains below typical levels seen in 2017 to 2019. This level of price reductions suggests that there isn’t a larger mismatch between buyer and seller expectations than is typically expected, and this is further supported by similar small rates of decline in both the median sale and list prices.
In the largest metropolitan areas in the country, the combined annual median list price growth rate for active listings was 6.2%, outpacing the national rate which declined. While all regions saw listing prices in larger metros still increasing on average, Midwestern metros had the highest growth rate in active listing prices, with an average increase of 10.1% over the past year. Prices in Los Angeles (+23.2%), San Diego (+22.0%), and Cincinnati (+21.7%) saw the biggest increases among large metros. However, in each of these metros the mix of inventory changed as larger and more expensive homes were listed for sale in July compared to the previous year. On a price-per-square-foot basis, listing prices only grew by 9.1% in Los Angeles, 10.1% in San Diego, and 11.2% in Cincinnati. Only 12 out of the largest 50 markets saw their median list price decline, down from 14 last month. The greatest year-over-year price declines were seen in Raleigh (-5.1%), and Austin (-4.1%), San Antonio (-3.9%), and Detroit (-3.9%). Larger southern metros saw the lowest listing price growth rate among the regions (2.4%). More recently, regional listing price trends have been remarkably consistent with rental price trends. In June, the South and West saw rental prices decline while rents in the Midwest and Northeast continued to grow.
While no regions saw an increase in the share of price reductions this month, large southern and midwestern metros also saw the smallest decrease in the share of price reductions compared to last year (-2.8 percentage points). Only four metros saw the share of price reductions increase compared to last July, predominantly in the South. Oklahoma City saw the greatest increase (+4.1 percentage points), followed by San Antonio (+3.7 percentage points), Memphis (+3.5 percentage points), and Indianapolis (+0.7 percentage points).
July 2023 Regional Statistics (50 Largest Metro Combined Average)
| Region | Active Listing Count YoY | New Listing Count YoY | Median Listing Price YoY | Median Listing Price Per SF YoY | Median Days on Market Y-Y (Days) | Price Reduced Share Y-Y (Percentage Points) |
| Midwest | -14.5% | -18.4% | 10.1% | 5.9% | 5 | -2.8 pp |
| Northeast | -21.1% | -17.7% | 9.9% | 6.7% | 6 | -3.1 pp |
| South | 2.8% | -19.9% | 2.4% | 2.1% | 12 | -2.8 pp |
| West | -33.4% | -28.8% | 7.5% | 2.5% | 6 | -12.3 pp |
July 2023 Regional Statistics vs Pre-Pandemic 2017-2019 (50 Largest Metro Combined Average)
| Region | Active Listing Count vs Pre-Pandemic | New Listing Count vs Pre-Pandemic | Median Listing Price vs Pre-Pandemic | Median Listing Price Per SF vs Pre-Pandemic | Median Days on Market vs Pre-Pandemic (Days) | Price Reduced Share vs Pre-Pandemic (Percentage Points) |
| Midwest | -52.6% | -29.8% | 33.5% | 42.1% | -9 | -7.6 pp |
| Northeast | -61.8% | -30.9% | 38.9% | 48.1% | -14 | -9.4 pp |
| South | -39.7% | -20.8% | 36.7% | 53.0% | -10 | -3.7 pp |
| West | -42.0% | -38.1% | 41.4% | 50.5% | 0 | -6.0 pp |
July 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. | $435,000 | -0.9% | -0.1% | -8.9% | -21.1% | 40 | 11 | 16.4% | -3.3 pp |
| Austin-Round Rock-Georgetown, Texas | $575,000 | -4.1% | -3.9% | 15.3% | -21.7% | 50 | 20 | 32.9% | -7.6 pp |
| Baltimore-Columbia-Towson, Md. | $375,000 | 5.6% | 5.3% | -24.7% | -24.0% | 37 | 3 | 12.4% | -4.3 pp |
| Birmingham-Hoover, Ala. | $299,000 | -0.2% | 3.5% | 9.8% | -11.6% | 44 | 14 | 14.5% | -1.9 pp |
| Boston-Cambridge-Newton, Mass.-N.H. | $850,000 | 14.9% | 13.2% | -26.5% | -27.2% | 36 | 10 | 12.3% | -4.6 pp |
| Buffalo-Cheektowaga, N.Y. | $268,000 | 7.2% | 8.7% | -12.5% | -21.5% | 38 | 8 | 7.3% | -1.1 pp |
| Charlotte-Concord-Gastonia, N.C.-S.C. | $440,000 | 2.3% | 3.8% | -16.2% | -28.7% | 39 | 9 | 14.2% | -4.8 pp |
| Chicago-Naperville-Elgin, Ill.-Ind.-Wis. | $389,000 | 11.1% | 3.5% | -29.2% | -17.7% | 36 | 4 | 11.5% | -4.5 pp |
| Cincinnati, Ohio-Ky.-Ind. | $383,000 | 21.7% | 11.2% | -11.1% | -17.8% | 31 | 6 | 11.6% | -1.1 pp |
| Cleveland-Elyria, Ohio | $245,000 | 8.9% | 5.5% | -20.3% | -24.7% | 39 | 4 | 11.1% | -3.5 pp |
| Columbus, Ohio | $399,000 | 15.0% | 7.6% | -11.7% | -17.3% | 25 | 4 | 15.2% | -4.1 pp |
| Dallas-Fort Worth-Arlington, Texas | $470,000 | -2.1% | -2.6% | 8.8% | -18.0% | 37 | 8 | 24.2% | -2.4 pp |
| Denver-Aurora-Lakewood, Colo. | $675,000 | 3.8% | 3.9% | -10.8% | -24.7% | 31 | 8 | 22.7% | -7.7 pp |
| Detroit-Warren-Dearborn, Mich. | $269,000 | -3.9% | -0.9% | -24.7% | -19.2% | 32 | 4 | 15.5% | -7.0 pp |
| Hartford-East Hartford-Middletown, Conn. | $435,000 | 14.8% | 2.4% | -33.6% | -15.6% | 23 | -1 | 5.1% | -4.2 pp |
| Houston-The Woodlands-Sugar Land, Texas | $376,000 | -3.6% | -1.4% | 6.9% | -10.3% | 40 | 7 | 18.6% | -3.2 pp |
| Indianapolis-Carmel-Anderson, Ind. | $347,000 | 6.9% | 5.2% | 0.6% | -18.0% | 38 | 8 | 19.1% | 0.7 pp |
| Jacksonville, Fla. | $435,000 | 1.9% | 0.2% | 10.1% | -20.1% | 50 | 17 | 19.9% | -1.4 pp |
| Kansas City, Mo.-Kan. | $443,000 | 12.2% | 9.2% | -4.2% | -15.8% | 50 | 10 | 13.1% | -0.7 pp |
| Las Vegas-Henderson-Paradise, Nev.* | $460,000 | N/A | N/A | N/A | -49.4% | 45 | N/A | 14.1% | N/A |
| Los Angeles-Long Beach-Anaheim, Calif. | $1,195,000 | 23.2% | 9.1% | -32.1% | -21.7% | 41 | 8 | 9.3% | -9.9 pp |
| Louisville/Jefferson County, Ky.-Ind. | $325,000 | 8.3% | 6.6% | -13.3% | -21.5% | 31 | 7 | 14.9% | -3.2 pp |
| Memphis, Tenn.-Miss.-Ark. | $325,000 | 1.6% | 1.0% | 33.2% | -12.5% | 44 | 14 | 18.3% | 3.5 pp |
| Miami-Fort Lauderdale-Pompano Beach, Fla. | $602,000 | -2.9% | 3.1% | 6.3% | -20.2% | 64 | 24 | 12.3% | -2.5 pp |
| Milwaukee-Waukesha, Wis. | $375,000 | 15.4% | 9.3% | -24.6% | -28.1% | 29 | 0 | 9.5% | -4.1 pp |
| Minneapolis-St. Paul-Bloomington, Minn.-Wis. | $461,000 | 8.5% | 4.0% | -12.8% | -13.2% | 36 | 4 | 12.9% | -0.9 pp |
| Nashville-Davidson-Murfreesboro-Franklin, Tenn. | $595,000 | 8.2% | 2.9% | 22.4% | -24.5% | 33 | 12 | 22.4% | -3.1 pp |
| New Orleans-Metairie, La. | $340,000 | -0.8% | 0.9% | 39.6% | -9.9% | 60 | 18 | 19.5% | -2.7 pp |
| New York-Newark-Jersey City, N.Y.-N.J.-Pa. | $738,000 | 11.9% | 18.7% | -19.3% | -22.4% | 54 | 10 | 7.9% | -3.0 pp |
| Oklahoma City, Okla. | $347,000 | 10.2% | 2.5% | 10.9% | -10.1% | 43 | 6 | 19.3% | 4.1 pp |
| Orlando-Kissimmee-Sanford, Fla. | $460,000 | -0.9% | 0.1% | -6.6% | -22.8% | 46 | 16 | 17.6% | -3.8 pp |
| Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. | $350,000 | 1.4% | 3.3% | -22.7% | -14.9% | 45 | 7 | 11.4% | -3.9 pp |
| Phoenix-Mesa-Chandler, Ariz. | $540,000 | 2.8% | -3.0% | -42.4% | -44.3% | 45 | 15 | 18.6% | -23.1 pp |
| Pittsburgh, Pa. | $249,000 | 3.8% | -2.1% | -8.7% | -11.3% | 47 | 8 | 15.2% | -0.5 pp |
| Portland-Vancouver-Hillsboro, Ore.-Wash. | $640,000 | 6.8% | 0.5% | -6.0% | -22.1% | 38 | 8 | 17.9% | -10.2 pp |
| Providence-Warwick, R.I.-Mass. | $550,000 | 14.6% | 1.4% | -32.8% | -24.1% | 35 | 6 | 6.9% | -4.6 pp |
| Raleigh-Cary, N.C. | $470,000 | -5.1% | -2.0% | -7.1% | -22.1% | 42 | 19 | 12.6% | -8.3 pp |
| Richmond, Va. | $439,000 | 12.6% | 8.7% | -10.6% | -23.6% | 43 | 7 | 7.7% | -1.8 pp |
| Riverside-San Bernardino-Ontario, Calif. | $585,000 | -1.8% | 1.1% | -30.5% | -25.0% | 45 | 9 | 12.9% | -10.6 pp |
| Rochester, N.Y. | $259,000 | 10.5% | 8.2% | -12.5% | -4.4% | 15 | -1 | 8.8% | -2.9 pp |
| Sacramento-Roseville-Folsom, Calif. | $677,000 | 7.5% | -1.1% | -40.1% | -22.9% | 36 | 4 | 14.0% | -16.7 pp |
| San Antonio-New Braunfels, Texas | $365,000 | -3.9% | -1.2% | 34.5% | -17.4% | 50 | 19 | 23.6% | 3.7 pp |
| San Diego-Chula Vista-Carlsbad, Calif. | $1,098,000 | 22.0% | 10.1% | -46.2% | -28.9% | 31 | 1 | 10.6% | -15.7 pp |
| San Francisco-Oakland-Berkeley, Calif. | $1,100,000 | 0.2% | -0.7% | -35.3% | -24.7% | 34 | 4 | 10.6% | -7.6 pp |
| San Jose-Sunnyvale-Santa Clara, Calif. | $1,498,000 | 7.0% | 0.2% | -52.0% | -35.3% | 30 | 1 | 9.3% | -11.3 pp |
| Seattle-Tacoma-Bellevue, Wash. | $815,000 | 3.2% | 5.3% | -38.7% | -38.4% | 33 | 5 | 13.7% | -9.7 pp |
| St. Louis, Mo.-Ill. | $289,000 | 5.1% | 4.5% | -7.6% | -11.8% | 38 | 3 | 11.0% | -2.8 pp |
| Tampa-St. Petersburg-Clearwater, Fla. | $449,000 | 0.9% | 2.2% | -3.5% | -27.3% | 46 | 17 | 21.0% | -5.6 pp |
| Virginia Beach-Norfolk-Newport News, Va.-N.C. | $395,000 | 12.8% | 6.8% | -16.2% | -24.2% | 33 | 7 | 13.1% | -3.9 pp |
| Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va. | $635,000 | 9.5% | 6.8% | -31.5% | -25.7% | 34 | 3 | 10.9% | -6.2 pp |
*Some Las Vegas listing metrics have been excluded while data is under review.
Methodology Note:
With the release of its May 2023 Housing Report, Realtor.com® incorporated a new and improved methodology for capturing and reporting housing inventory trends and metrics. As a result of these changes, this release is not directly comparable with previous data releases and reports. However, future data releases, including historical data, will consistently apply the new methodology.
Subscribe to our mailing list to receive updates and notifications on the latest data and research.
