Realtor.com® December Housing Report: Inventory Ends the Year Up 55% but Remains Below Historic Levels
The U.S. housing market showed signs of normalizing in December 2022, with a 54.7% increase in active listings year-over-year, but still 38.2% lower than pre-pandemic levels. The median listing price rose 8.4% to $400,000, marking the first time in a year that annual growth fell below double digits. Homes spent an average of 67 days on the market, 11 days longer than last year. The share of listings with price reductions increased to 13.6%. Market demand has softened, yet prices remain significantly higher than in 2019.
- None.
- Home price growth has moderated to single digits for the first time since December 2021, signaling reduced buyer enthusiasm.
- Homes are spending an average of 67 days on the market, indicating a slowdown in sales activity.
- Mortgage payments have increased by nearly $750 monthly, raising concerns over affordability for potential buyers.
Price growth eases to high single-digit territory in December
SANTA CLARA, Calif., Jan. 12, 2023 /PRNewswire/ -- The U.S. housing market continued to show signs of normalizing in December, with inventory and time on market increasing and listing price growth moderating, according to the Realtor.com® Monthly Housing Trends Report released today. After the frenzy of the past two years, this suggests good news for homebuyers in the new year with more options and more time to make a decision.
"In December, we saw both buyers and sellers pulling back as they continue to adjust to a challenging market. Buyers started 2022 facing high home prices and limited inventories, and ended the year with interest rates roughly double where they started. Despite significant cooling in sales in 2022, some indicators remain in high gear. Prices are still significantly higher and homes are selling faster compared to 2019 pre-pandemic levels," said Danielle Hale, Chief Economist for Realtor.com®. "Although demand has softened compared to last year, pushing home price growth into single-digit territory for the first time in 12 months, moderation in home price growth may encourage more buyers to return to the market in the months ahead, and may also be welcome news for sellers aiming to sell and buy at the same time. Affordability will remain a challenge and buyers will want to keep a close eye on their potential mortgage payment – a mortgage calculator is a great way to do this."
December 2022 Housing Metrics – National
Metric | Change over Dec. 2021 | Change over Dec. 2019 |
Median listing price | 33.4 % | |
Active listings | 54.7 % | -33.4 % |
New listings | -21.0 % | -17.7 % |
Median days on market | 11 days (to 67 days) | -16 days |
Share of active listings with | 6.5 percentage points (to | 3.3 percentage points (from |
Active listings up significantly from 2021, easing inventory constraints for buyers
The supply of active listings for sale in the U.S. increased significantly in December over the previous year, signaling continued hesitation from buyers in the face of mortgage affordability and other obstacles. While the number of homes for sale continued to increase in the latter part of 2022, inventory is still significantly lower than it was in 2019 before the pandemic. Home sellers also continued to be less active in December and fewer listed their home for sale compared to one year ago.
- Nationally, the active inventory of homes for sale grew
54.7% year-over-year in December, but is still well below pre-pandemic levels (-38.2% compared to the December 2017-2019 average). - Both newly-listed homes (-
21.0% ) and pending listings, or homes under contract with a buyer (-36.8% ), declined year-over-year. - Among the 50 largest U.S. metros, 49 markets posted yearly active inventory gains in December, led by Raleigh, N.C. (+
226.2% ), Nashville, Tenn., (+226.0% ), and Austin, Texas (+186.6% ). Only Hartford, Conn. (-7.7% ) saw a year-over-year decline in the number of for-sale homes. - In December, on average across the 50 largest metros, the number of homes for sale was up
74.6% compared to a year ago, with the most growth in active listings in the West (+110.2% ), which nearly reached pre-pandemic 2019 levels (-3.9% ). - On average across the 50 largest metros, no regions saw year-over-year new listing increases in December, with the greatest declines registered in the West (-
32.5% ), followed by the Northeast (-21.8% ), Midwest (-19.3% ) and South (-17.2% ). Furthermore, newly-listed homes increased in just two markets: Nashville(4.1% ) and Buffalo, N.Y.. (+3.0% ).
Home price growth moderates to single digits for the first time in a year
In December, growth in the typical asking price slowed to a single-digit pace for the first time since December 2021. While this is still higher than normal, it's a significant slowdown from the peak
- In December, the U.S. median listing price was
$400,000 , up8.4% year-over-year. This is the first time since December 2021 the annual growth rate has fallen below double-digits. - While the monthly home price growth rate has slowed from the double-digits seen during the pandemic frenzy, overall, home prices continued to rise in 2022, and the median list price was up an average
13.4% compared to the previous year. - The slowdown in the demand for homes has caused sellers to cut their prices. Nationally,
13.6% of active listings had their price reduced, a higher share than in December 2021 (+6.5 percentage points), but similar to the 2018 share (14.5% ). - Among the 50 largest U.S. metros, the biggest annual listing price gains were in Midwest metros (+
12.2% , on average). The markets with the biggest increases were Milwaukee (+46.2% ), Memphis, Tenn. (+34.0% ), and Miami (+20.4% ). - Southern (+9.6 percentage points) and Western metros (+8.7 percentage points) saw the greatest increases in the share of listings with price reductions. Listing prices declined in nine markets, led by New Orleans (-
4.4% ), Denver (-4.0% ), Austin (-3.4% ), Phoenix( -2.4% ) , and Pittsburgh (-2.3% ).
Homes stay on the market 11 days longer on average as buyers take their time to decide
For-sale homes continued to spend more time on market compared to the prior year amid a growing number of homes for sale and softening buyer demand. Modestly rising incomes (+
- In December, the typical home spent 67 days on market, 11 days longer than last year, but still 16 days faster than in 2017-2019, on average.
- Time on market was lower across the 50 largest U.S. metros (61 days, on average) relative to the national pace, but also slowed from the December 2021 pace (+11 days).
- Forty-five metros saw an increase in time on market compared to last year, with larger metros in the West seeing the greatest increase (+18 days) followed by the South (+13 days). Metros where homes spent longest on the market compared to December 2021 were Raleigh, N.C. (+36 days), Phoenix (+34 days), and Las Vegas (+33 days).
- In the five metros where time on market declined compared to last year the biggest declines were seen in Milwaukee (-16 days) and New Orleans (-5 days).
December 2022 Housing Metrics – 50 Largest U.S. Metro Areas
Metro Area | Median | Median | Median | Active | New | Median | Median | Price | Price |
2.6 % | 3.2 % | 62.2 % | -20.5 % | 60 | 12 | 16.2 % | 9.6 pp | ||
-3.4 % | -1.2 % | 186.6 % | -18.8 % | 73 | 27 | 24.6 % | 15.5 pp | ||
6.4 % | 4.2 % | 17.2 % | -22.8 % | 53 | 4 | 12.1 % | 3.1 pp | ||
-1.1 % | 4.6 % | 69.7 % | -10.4 % | 65 | 4 | 13.5 % | 6.5 pp | ||
8.4 % | -0.4 % | 25.7 % | -27.2 % | 59 | 7 | 11.0 % | 2.9 pp | ||
5.4 % | 6.1 % | 29.6 % | 3.0 % | 64 | -2 | 7.0 % | 2.6 pp | ||
1.4 % | 5.9 % | 111.0 % | -20.1 % | 60 | 21 | 16.4 % | 8.6 pp | ||
2.4 % | -1.6 % | 5.2 % | -23.0 % | 57 | 3 | 10.6 % | 2.4 pp | ||
9.4 % | 4.0 % | 11.0 % | -19.4 % | 52 | 3 | 8.8 % | 1.4 pp | ||
2.7 % | 4.0 % | 17.9 % | -21.2 % | 57 | 3 | 14.3 % | 4.6 pp | ||
13.7 % | 8.0 % | 39.9 % | -14.7 % | 51 | 10 | 16.6 % | 8.4 pp | ||
8.8 % | 5.7 % | 160.8 % | -9.1 % | 59 | 17 | 18.7 % | 13 pp | ||
-4.0 % | -4.7 % | 146.2 % | -29.6 % | 61 | 21 | 17.8 % | 12.2 pp | ||
6.0 % | 2.2 % | 39.4 % | -12.5 % | 56 | 11 | 17.4 % | 4.5 pp | ||
4.8 % | 1.4 % | -7.7 % | -29.8 % | 65 | 10 | 7.3 % | 2.1 pp | ||
0.0 % | 2.0 % | 49.8 % | -5.3 % | 60 | 6 | 14.0 % | 4.8 pp | ||
5.5 % | 7.6 % | 77.8 % | -17.8 % | 55 | 9 | 18.1 % | 9.6 pp | ||
5.3 % | 6.0 % | 144.7 % | -12.7 % | 67 | 17 | 20.4 % | 14.6 pp | ||
19.7 % | 10.0 % | 61.4 % | -29.0 % | 77 | 19 | 10.6 % | 4.7 pp | ||
-2.2 % | 4.2 % | 108.0 % | -23.4 % | 74 | 33 | 19.5 % | 9.4 pp | ||
-1.8 % | -1.6 % | 92.1 % | -31.4 % | 70 | 21 | 10.2 % | 5.8 pp | ||
13.3 % | 4.5 % | 33.4 % | -33.3 % | 51 | 10 | 16.7 % | 5.8 pp | ||
34.0 % | 18.1 % | 115.6 % | -30.8 % | 61 | 16 | 17.9 % | 11.7 pp | ||
20.4 % | 9.2 % | 52.7 % | -14.8 % | 68 | 5 | 13.5 % | 8.1 pp | ||
46.2 % | 21.4 % | 7.1 % | -12.7 % | 50 | -16 | 11.1 % | 2 pp | ||
11.9 % | 6.6 % | 9.8 % | -16.1 % | 58 | 7 | 10.8 % | 4.2 pp | ||
12.0 % | 6.6 % | 226.0 % | 4.1 % | 50 | 22 | 17.2 % | 10.3 pp | ||
-4.4 % | -2.8 % | 97.1 % | -14.9 % | 75 | -5 | 11.7 % | 4.1 pp | ||
6.5 % | 5.6 % | 4.0 % | -29.1 % | 81 | 5 | 6.7 % | 1.7 pp | ||
11.7 % | 8.1 % | 76.5 % | -24.1 % | 62 | 15 | 18.9 % | 11.4 pp | ||
10.3 % | 11.3 % | 119.4 % | -24.8 % | 70 | 10 | 17.7 % | 12.4 pp | ||
6.7 % | 4.1 % | 15.7 % | -23.1 % | 66 | 8 | 11.7 % | 3.3 pp | ||
-2.4 % | 2.7 % | 165.5 % | -21.3 % | 70 | 34 | 25.5 % | 17.3 pp | ||
-2.3 % | -2.0 % | 20.6 % | -14.1 % | 73 | 8 | 11.9 % | 1.9 pp | ||
7.3 % | 2.3 % | 91.5 % | -40.3 % | 66 | 16 | 12.8 % | -1.9 pp | ||
10.6 % | 6.3 % | 18.1 % | -25.4 % | 46.5 | -3 | 9.4 % | 4.3 pp | ||
5.7 % | 3.4 % | 226.2 % | -17.0 % | 71 | 36 | 17.0 % | 11.7 pp | ||
6.3 % | 7.1 % | 49.6 % | -20.7 % | 56 | 2 | 11.9 % | 8.3 pp | ||
1.6 % | 6.6 % | 114.3 % | -26.8 % | 69 | 24 | 14.2 % | 8.2 pp | ||
20.3 % | 16.0 % | 16.8 % | -23.6 % | 44 | 5 | 8.9 % | 2.1 pp | ||
-2.0 % | -2.6 % | 84.5 % | -27.1 % | 64 | 21 | 14.6 % | 8.3 pp | ||
3.5 % | 2.9 % | 99.3 % | -18.0 % | 68 | 19 | 18.6 % | 10.7 pp | ||
9.6 % | 5.0 % | 96.1 % | -34.6 % | 56 | 10 | 12.9 % | 8.3 pp | ||
4.6 % | -2.6 % | 57.1 % | -40.4 % | 63 | 15 | 9.8 % | 6.1 pp | ||
12.6 % | -0.2 % | 80.3 % | -43.9 % | 53 | N/A | 12.6 % | 10.4 pp | ||
9.4 % | 3.0 % | 176.3 % | -39.0 % | 60 | 21 | 15.1 % | 11.6 pp | ||
10.5 % | 5.7 % | 22.7 % | -22.6 % | 56 | 1 | 12.0 % | 4.2 pp | ||
7.3 % | 7.2 % | 170.9 % | -14.1 % | 59 | 5 | 22.4 % | 15.3 pp | ||
19.2 % | 8.0 % | 9.1 % | -15.6 % | 50 | 12 | 14.1 % | 6.1 pp | ||
11.0 % | -2.0 % | 27.0 % | -28.1 % | 57 | 9 | 10.8 % | 3.4 pp |
Methodology
Realtor.com® housing data as of December 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. 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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