Key Findings:
- The median listing price grew by 15.8 percent over last year. This marked the 21st week of double-digit gains for the typical home asking price. Last week’s Fed announcement of higher short term rates was widely expected, but mortgage rates still climbed following the news, putting further drag on homebuyer purchasing power. Buyers are employing a variety of strategies to navigate the increasingly expensive housing market. Some shoppers are making larger down payments. This is a good strategy for existing homeowners who have seen their equity grow as home prices have soared, but an increasingly challenging one for first-time homebuyers, many of whom are also contending with rents continuing to grow 4-5x faster than pre-pandemic. Other shoppers are moving to find affordability, with metro areas in the Sunbelt, particularly Texas, seeing the biggest net improvement in traffic as locals stay and outsiders aim to move in for the affordability.
- New listings–a measure of sellers putting homes up for sale–were up 4% above one year ago. Now that we’re in May, we’re in the heart of home selling season. Over the last few years, we have tended to see the number of new listings peak on an absolute basis this month while active inventory (newly listed homes plus those that have been on the market for a while) tends to peak in the fall. Seller confidence amid record high asking prices is contributing to the growth in the number of sellers this year over last.
- Active inventory grew for the first time since 2019. While the size of the improvement rounded to 0%, this week’s data markets the first time that inventory figures weren’t lower than the previous year since June 2019. Our April Housing Trends Report showed that the active listings count remained 60 percent below its level right at the onset of the pandemic. This means that for every 5 homes available for sale in the earlier period, today there are just 2. In other words, homes for sale are still limited. However, the switch to growth after nearly 3 years of decline is a step in the right direction, even though inventory continues to lag pre-pandemic normal.
- Homes spent 6 days less on the market than this time last year. With mortgage rates still climbing, homebuyers who can act quickly have an edge in a still-competitive market. In fact, our April Housing Trends Report showed that homes sat on the market for less time than ever before–a feat normally not achieved until summer. First-time homebuyers can check out our first-time home buyer guide to prepare for the process and navigate the market more confidently. For repeat buyers contemplating how to buy and sell at the same time, our seller’s market place and information can give you options you may not have realized you had.