Realtor.com® February Housing Report: More Choices for Buyers as Inventory Recovery Continues at Breakneck Speed

Rhea-AI Summary

The U.S. housing market shows signs of recovery with active inventory increasing by 67.8% year-over-year in February, the sixth consecutive month of record growth. Major cities like Austin, Las Vegas, and San Antonio have surpassed pre-pandemic inventory levels. However, despite this increase, home prices continue to rise, albeit at a slower rate of 7.8%. With fewer homeowners listing their properties, sellers may need to adjust their expectations as homes are now taking over 67 days to sell, three weeks longer than last year.

Overall, the supply surge is primarily driven by reduced buyer interest due to high costs, leading to more price reductions.

Positive

• Active inventory rose 67.8%
• Homes in Austin, Las Vegas, and San Antonio surpassed pre-pandemic inventory levels.

Negative

• Fewer homeowners are listing their homes, affecting overall market supply.
• Homes are taking more than 67 days to sell, three weeks longer than last year.
• Despite increased inventory, home prices are still growing at 7.8%, impacting buyer affordability.

03/02/2023 - 06:00 AM

In February, active inventory rose 68% above a year ago; Austin, Las Vegas and San Antonio are first markets to recover pandemic inventory shortages and surpass pre-pandemic levels

SANTA CLARA, Calif., March 2, 2023 /PRNewswire/ -- The U.S. supply of homes for sale rose at a record annual pace for the sixth month in a row, up 67.8% year over year in February, signaling the housing market's continued rebalancing, according to the Realtor.com^® Monthly Housing Trends Report released today. Despite the significant increase in inventory over last year's record lows, home prices are still growing, albeit at a slower pace of 7.8% over last February, a sign of still-high hopes from home sellers entering the market.

What it means for homebuyers, sellers, and the housing market
In a market with conditions that don't particularly favor buyers or sellers, both will likely have to make compromises to make a deal happen. As mortgage rates continue to fluctuate and increase the cost of buying a home, it's important for sellers to price their home appropriately to attract buyers in the market. For buyers, it's critical they make the best offer they can on a home that fits their needs and budget. Realtor.com^®'s mortgage calculator can help home shoppers estimate monthly payments quickly and easily as rates change from week to week.

"The number of homes for sale on the market is up significantly from a year ago, even though fewer homeowners have listed their home for sale in recent months. High home prices and mortgage rates continue to cut into buyer interest and homes are taking more than three weeks longer to sell than last year," said Danielle Hale, Chief Economist for Realtor.com^®. "With a smaller pool of buyers today and more competition from other homes on the market, homesellers will likely need to adjust their price expectations in the market this spring."

"For many, shopping for a new home often begins or picks up as we head into the warmer months, which is right around the corner," said Clare Trapasso, executive news editor at Realtor.com^®. "Potential buyers looking to take advantage of more homes to choose from and a less competitive pace also have more negotiating power than they did a year ago. So if a home has been on the market a while without receiving any offers, they may want the seller to contribute to their closing costs, make expensive repairs, or even buy down their mortgage rate."

February 2023 Housing Metrics – National

Metric	Change over Feb. 2022	Change over Feb. 2019
Median listing price	7.8% (to $415,000)	+40.1 %
Active listings	67.8 %	-47.5 %
New listings	-15.9 %	-23.9 %
Median days on market	+23 days (to 67 days)	-17 days
Share of active listings with price reductions	+7.6 percentage points (to 13.3%)	-2.7 percentage points

 

More options despite fewer sellers entering the market
The supply of homes for sale continued to rise in February at a record annual pace, driven mostly by low interest from buyers facing high home and mortgage costs rather than an influx of new homes for sale to the market. Despite a significant increase in the number of homes for sale in recent months as existing home sales and demand slow, there are still fewer homes available to buy nationwide on a typical day than there were a few years ago.

• In February, the U.S. supply of active listings for sale rose at a record annual pace for the sixth month in a row, up 67.8% compared to last year, but it is still well below pre-pandemic levels (-47.4% compared to the February 2017-2019 average). Both newly-listed homes (-15.9%) and pending listings, or homes under contract with a buyer (-24.7%), declined year-over-year.
• Across the 50 largest metros, the number of homes for sale was up 86.0% compared to last February, with the most growth in active listings in the South (+141.4%).
• Among the 50 largest U.S. metros, 49 markets saw active inventory gains in February compared to last year, but only Las Vegas, Austin, Texas, and San Antonio saw higher levels of inventory compared to typical February 2017–2019 levels. Hartford, Conn. (-8.8%) was the only metro to see inventory decline on a year-over-year basis.
• Six metros saw the number of newly listed homes increase over last year, led by Raleigh, N.C. (+14.8%), Dallas (+10.3%) and San Antonio (+10.2%). The largest yearly decline in newly listed homes were in western metros, including San Jose, Calif. (-43.3%), San Francisco (-39.4%), and Seattle (-36.8%).

Home price growth continues to level off as more sellers drop their asking price
While home prices were up in February compared to last year, year-over-year asking price growth has remained in the single digits for three months in a row, suggesting that home prices are continuing to moderate and cool down from last year's record highs. While mortgage rates are down from their November highs, rates rebounded this month and with higher home prices compared to last February, the typical monthly mortgage payment is roughly $630 more than it was a year ago. As a result of these cost pressures, the slowdown in the demand for homes means more than twice as many sellers cut their asking price in February compared to last year. 

• The U.S. median listing price was $415,000 in February, up from $406,000 in January, and 7.8% higher than a year ago.
• Among the 50 largest U.S. metros, the biggest annual listing price gains were in Midwest metros (+11.9%, on average). The metros with the biggest asking price increases were Milwaukee (+48.8%), Memphis (+42.7%), and Virginia Beach (+16.3%); however, in these metros the mix of inventory also changed and more larger, expensive homes are for sale today.
• In February, 13.0% of active listings had their price reduced, up from 5.4% a year ago. Southern metros (+10.3 percentage points) saw the largest increase in the share of listings with price reductions.
• Listing prices declined in eight markets, led by Austin (-8.0% year-over-year), New Orleans (-7.0%), and Pittsburgh (-6.9%). In those markets, the median price-per-square-foot also declined on a yearly basis, signaling that price declines weren't from a rise in smaller homes for sale but by sellers adjusting their expectations and sales price.

Homes take three weeks longer to sell than last year
The housing market has cooled considerably since the height of the pandemic, when buyer demand outmatched the record low supply of homes for sale and bidding wars were common. In February, homes took more than three weeks longer to sell than they did at this time last year, despite an uptick in buyer sentiment in January. The continued slower pace of home sales signals a return to a more balanced housing market and what was considered normal before the pandemic, and it gives buyers more time to decide if a house is right for them.

• The typical home spent 67 days on market in February, 23 days longer than this time last year, but still 20 days faster than in February 2017-2019, on average.
• Relative to the national pace, time on market was lower across the 50 largest U.S. metros in February (56 days, on average) and was 19 days slower than the February 2022 pace.
• Compared to last year, 47 out of 50 metros saw an increase in time on market with larger metros in the West seeing the greatest increase (+26 days). Austin, Texas (+52 days), Raleigh, N.C. (+51 days), and Las Vegas and Denver (+38 days) saw the greatest increases in time on market.
• Only one market saw shrinking time on market and two were unchanged from last year: Hartford, Conn. (-2 days), Cincinnati, Ohio (+0 days), and Buffalo, N.Y. (+0 days).

February 2023 Housing Metrics – 50 Largest U.S. Metro Areas

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.	$400,000	2.2 %	1.5 %	80.5 %	-20.4 %	52	15	14.9 %	9.8 pp
Austin-Round Rock-Georgetown, Texas	$533,000	-8.0 %	-8.2 %	335.1 %	5.8 %	72	52	25.4 %	21.2 pp
Baltimore-Columbia-Towson, Md.	$323,000	7.5 %	4.2 %	23.1 %	-22.9 %	52	13	11.3 %	4.2 pp
Birmingham-Hoover, Ala.	$272,000	3.5 %	6.1 %	63.8 %	-20.3 %	66	23	13.2 %	7.1 pp
Boston-Cambridge-Newton, Mass.-N.H.	$799,000	6.7 %	-3.5 %	30.2 %	-23.9 %	38	13	9.9 %	5.0 pp
Buffalo-Cheektowaga, N.Y.	$227,000	8.3 %	4.9 %	31.6 %	0.0 %	65	0	5.4 %	2.1 pp
Charlotte-Concord-Gastonia, N.C.-S.C.	$397,000	1.9 %	2.9 %	136.6 %	-4.1 %	57	29	13.7 %	7.9 pp
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	$338,000	4.0 %	-3.5 %	10.8 %	-24.4 %	47	6	9.6 %	3.5 pp
Cincinnati, Ohio-Ky.-Ind.	$360,000	13.4 %	4.7 %	19.9 %	-17.4 %	54	0	9.6 %	4.2 pp
Cleveland-Elyria, Ohio	$199,000	10.9 %	6.2 %	27.8 %	-6.6 %	57	5	11.6 %	5.0 pp
Columbus, Ohio	$360,000	10.8 %	4.1 %	38.9 %	-9.9 %	42	17	12.3 %	7.2 pp
Dallas-Fort Worth-Arlington, Texas	$435,000	5.6 %	2.1 %	208.2 %	10.3 %	61	29	15.9 %	12.7 pp
Denver-Aurora-Lakewood, Colo.	$630,000	-2.8 %	-2.6 %	116.8 %	-17.0 %	44	38	13.1 %	10.9 pp
Detroit-Warren-Dearborn, Mich.	$229,000	6.5 %	3.4 %	40.8 %	-14.6 %	59	22	14.3 %	5.7 pp
Hartford-East Hartford-Middletown, Conn.	$396,000	9.4 %	3.1 %	-8.8 %	-18.9 %	40	-2	5.1 %	1.8 pp
Houston-The Woodlands-Sugar Land, Texas	$358,000	-0.9 %	-0.1 %	61.0 %	-10.1 %	55	14	14.8 %	7.7 pp
Indianapolis-Carmel-Anderson, Ind.	$300,000	2.8 %	2.9 %	86.2 %	-5.1 %	61	23	14.4 %	8.7 pp
Jacksonville, Fla.	$390,000	2.2 %	3.5 %	172.5 %	5.1 %	65	27	19.1 %	14.6 pp
Kansas City, Mo.-Kan.	$442,000	14.2 %	7.4 %	82.5 %	-23.1 %	92	31	8.8 %	5.4 pp
Las Vegas-Henderson-Paradise, Nev.	$446,000	-6.2 %	-2.1 %	105.9 %	-30.4 %	67	38	21.9 %	15.1 pp
Los Angeles-Long Beach-Anaheim, Calif.	$974,000	2.6 %	1.1 %	51.0 %	-33.1 %	53	22	9.7 %	5.9 pp
Louisville/Jefferson County, Ky.-Ind.	$300,000	7.2 %	2.5 %	45.4 %	-12.5 %	46	10	12.8 %	6.2 pp
Memphis, Tenn.-Miss.-Ark.	$323,000	42.7 %	18.4 %	136.1 %	-0.7 %	69	29	15.0 %	10.3 pp
Miami-Fort Lauderdale-Pompano Beach, Fla.	$599,000	14.7 %	4.0 %	87.7 %	-11.4 %	69	16	14.6 %	10.2 pp
Milwaukee-Waukesha, Wis.	$413,000	48.8 %	22.6 %	18.1 %	-23.7 %	52	16	9.8 %	2.3 pp
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	$435,000	8.9 %	17.1 %	23.8 %	-34.2 %	50	16	7.2 %	4.0 pp
Nashville-Davidson-Murfreesboro-Franklin, Tenn.	$518,000	8.9 %	3.1 %	299.7 %	2.2 %	39	24	19.0 %	14.4 pp
New Orleans-Metairie, La.	$325,000	-7.0 %	-2.9 %	115.1 %	-18.1 %	71	2	15.4 %	7.2 pp
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	$680,000	6.7 %	5.4 %	5.9 %	-28.3 %	84	15	7.3 %	2.5 pp
Oklahoma City, Okla.	$349,000	6.1 %	3.9 %	120.8 %	-14.1 %	53	9	14.9 %	8.3 pp
Orlando-Kissimmee-Sanford, Fla.	$435,000	9.4 %	6.9 %	153.1 %	-10.9 %	65	30	16.1 %	12.1 pp
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	$322,000	7.5 %	3.4 %	23.1 %	-19.8 %	67	14	11.4 %	4.4 pp
Phoenix-Mesa-Chandler, Ariz.	$487,000	-2.6 %	-0.8 %	208.6 %	-12.3 %	62	34	24.6 %	19.2 pp
Pittsburgh, Pa.	$200,000	-6.9 %	-4.8 %	29.4 %	-12.2 %	89	11	12.8 %	4.8 pp
Portland-Vancouver-Hillsboro, Ore.-Wash.	$607,000	8.1 %	-0.8 %	76.3 %	-35.2 %	54	25	10.1 %	0.7 pp
Providence-Warwick, R.I.-Mass.	$498,000	8.9 %	3.6 %	26.3 %	-19.2 %	45	6	7.8 %	4.1 pp
Raleigh-Cary, N.C.	$449,000	3.6 %	-2.4 %	329.8 %	14.8 %	68	51	13.2 %	10.7 pp
Richmond, Va.	$392,000	6.8 %	5.4 %	58.9 %	-22.4 %	54	15	7.9 %	4.9 pp
Riverside-San Bernardino-Ontario, Calif.	$560,000	1.8 %	3.4 %	94.7 %	-30.4 %	66	35	13.9 %	9.5 pp
Rochester, N.Y.	$232,000	3.9 %	5.8 %	25.0 %	-1.5 %	31	9	7.3 %	1.9 pp
Sacramento-Roseville-Folsom, Calif.	$605,000	-3.8 %	-4.1 %	47.9 %	-34.5 %	52	27	12.0 %	6.5 pp
San Antonio-New Braunfels, Texas	$340,000	1.0 %	0.0 %	150.4 %	10.2 %	70	27	17.2 %	12.9 pp
San Diego-Chula Vista-Carlsbad, Calif.	$932,000	9.7 %	3.3 %	54.1 %	-32.7 %	38	11	10.1 %	7.3 pp
San Francisco-Oakland-Berkeley, Calif.	$1,009,000	1.7 %	-4.0 %	24.4 %	-39.4 %	33	14	8.4 %	5.0 pp
San Jose-Sunnyvale-Santa Clara, Calif.	$1,400,000	3.2 %	0.8 %	29.9 %	-43.3 %	30	18	8.5 %	6.7 pp
Seattle-Tacoma-Bellevue, Wash.	$750,000	3.8 %	0.9 %	102.4 %	-36.8 %	45	28	10.1 %	8.2 pp
St. Louis, Mo.-Ill.	$272,000	3.5 %	4.8 %	23.6 %	-15.3 %	67	16	9.7 %	5.0 pp
Tampa-St. Petersburg-Clearwater, Fla.	$400,000	1.4 %	1.7 %	224.5 %	-0.7 %	60	28	21.1 %	16.5 pp
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$372,000	16.3 %	7.8 %	25.4 %	-19.8 %	40	12	12.3 %	7.3 pp
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	$585,000	10.8 %	0.1 %	23.3 %	-31.8 %	43	10	9.0 %	4.3 pp

 

Methodology
Realtor.com^® housing data as of February 2023. Listings include the active inventory of existing single-family homes and condos/townhomes/rowhomes/co-ops for the given level of geography on Realtor.com; new construction is excluded unless listed via an MLS that provides listing data to Realtor.com. 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).

Note: With the release of its February 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.

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^® .

Media Contact
sara.wiskerchen@move.com 

 

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SOURCE Realtor.com

FAQ

What was the active inventory increase reported for February 2023?

The active inventory rose by 67.8% year-over-year.

Which cities regained pre-pandemic inventory levels in February 2023?

Austin, Las Vegas, and San Antonio surpassed pre-pandemic inventory levels.

How much longer are homes taking to sell compared to last year?

Homes are taking over 67 days to sell, three weeks longer than in February last year.

What is the current median listing price in the U.S. housing market?

The median listing price reached $415,000 in February 2023.

Has the buyer interest in the housing market changed recently?

Yes, buyer interest has decreased due to high home and mortgage costs.