According to the National Association of Realtors, the Midwest saw listing activity decline by 23.4% compared to 2022, In the Northeast listings also declined 24.6%, and the South reporting a 26.2% drop. The West reported the largest decline, 33.7%. In all regions, newly-listed homes are well-below the traditional levels reported in 2017 to 2019.
In the 50 largest metro areas in the U.S. the number of homes for sale increased by 2.8% compared to 2022. but still 47.1% below pre-pandemic levels. For the larger metro areas, inventory growth is basically coming in the South, where growth in the number of homes for sale, increased by 24.1% as compared to 2022, while staying 41.0% lower than pre-pandemic levels. Overall, the large metros in the other three regions also saw declines in the annual growth of active inventory. In the West, large metro inventory declined by 20.9% compared to 2022 and 42.1% below pre-pandemic levels. In the Northeast, inventory declined by 13.4% year-over-year.
Who’s Buying and Who’s Selling
An interesting metric hit the market with respect to the individuals selling homes in May. It was reported that 32.4% of the sales were rental or investment properties or second homes according to the survey taken, according to Bright MLS. The median home price back in May in the Mid-Atlantic region was $400,000, which is the highest sales price on record. In the Mid-Atlantic the number of active listings at the end of May 1.5% compared to a year ago, which is still 40% lower than the numbers reported back in 2019. Another interesting fact is that half of the homes sold in May remained on the market a week or less. This is the fastest rate of sale since last summer which was in the middle of the pandemic boom.
So what appears to be occurring is those individuals who bought investment properties are putting them on the market.
Based upon the survey of over 1,000 sellers, the bright MLS survey indicated that 56.5% of buyers surveyed paid above the sellers original list price. This translates to an average 5.6% above the asking price.
And of course, inventory is still struggling to increase the number of available existing homes for sale. Buyers are finding it increasingly difficult to find the right home. And according to the bright MLS survey 41% of the survey respondents indicated that buyer activity would be high to very high over the next 3 months, which is down 47.2% from one month ago.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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