Realtor.com® June Housing Report: Home Prices Post Their First Annual Decline Since Before 2017
- -0.9% decline in median home listing price in June
- 7.1% growth in active inventory year over year
- Potential opportunities for buyers to negotiate or consider homes that need work
- -25.7% decrease in new listings of homes for sale year over year
In June, median home prices slipped -
"While home asking prices grew seasonally, price gains have been weakening since last summer as rising mortgage rates have added to ongoing affordability challenges and further cooled buyer demand, so the first year-over-year decline in median list prices this month wasn't unexpected. While this could feel like a welcome relief for buyers, our revised 2023 outlook expects only a modest drop in home prices of
What it means for homebuyers, sellers, and the housing market
Affordability has evolved into an increasingly important factor in home purchase decisions, and a drop in home listing prices creates potential opportunities for buyers, especially with some creativity.
"If buyers see homes sitting on the market for a while that haven't received many good offers, there may be some opportunities for further negotiations. It never hurts to ask a seller if they would be willing to reduce their price a little, contribute to closing costs, or even buy down their mortgage rate," said Realtor.com® Executive News Editor Clare Trapasso. "While this likely won't work for the well-located, move-in ready homes oozing curb appeal, buyers may want to take another look at homes that may need a little work. Sometimes a coat of paint and minor work can make a big difference."
June 2023 Housing Metrics – National
Metric | Change over June 2022 | Change over June 2019 |
Median listing price | - | +39.1 % |
Active listings | +7.1 % | -49.7 % |
New listings | -25.7 % | -28.8 % |
Median days on market | +13 days (to 44 days) | -10 days |
Share of active listings with | +-0.7 percentage points (to | -2.9 percentage points |
Home asking prices see first annual decline as high borrowing costs create barriers
Recent near-record high mortgage rates and still-high listing prices continue to create affordability challenges for homebuyers, which is putting downward pressure on home list prices, which slipped annually in June for the first time since 2017. Despite high borrowing costs and a low inventory of homes to choose from in the market, homebuying sentiment continues to improve in recent months, and a new survey from Realtor.com® and Censuswide found that the vast majority of respondents, nearly 9 in 10 of those shopping, still hope to make a home purchase happen this year.
- In June, the
U.S. median list price grew to$445,000 $441,000 0.9% ) from June 2022's record high of$449,000 - Northeastern metros had the highest growth rate in active listing prices, with an average increase of
11.7% over the past year. Prices inCincinnati, Ohio (+20.0% ),Rochester, N.Y. (+19.6% ), andLos Angeles (+17.7% ) saw the biggest increases among large metros. However, in each of these metros the mix of inventory changed and larger, more expensive homes were listed for sale in June compared to the previous year. - Among the 50 largest
U.S. metros, 15 out of the largest 50 markets saw their median list price decline. The greatest price declines were seen inTexas metros:Austin (-6.8% year over year),Houston (-5.1% ), andRaleigh, N.C. (-4.2% ). - Nationally, the share of homes with price reductions was mostly flat in June, decreasing slightly from
14.7% last June to14.1% this year. - Among the largest metros, the largest increases in the percentage of homes with price reductions compared to last year were in
San Antonio, Texas (+8.3 percentage points),Memphis, Tenn. (+6.3 pp) andJacksonville, Fla. (+4.7 pp).
Buyers short on options as active inventory declines in many areas
There continues to be an ongoing lack of homes for sale as potential sellers with near-record equity take a wait-and-see approach and buyers compete over the remaining available homes for sale. In June, the growth in the number of active homes for sale slowed for the fourth month in a row, and growth stalled completely in the final week of June, with the number of active homes for sale slipping below (-
- Nationally, active inventory grew
7.1% year over year in June, but slowed for the fourth month in a row, registering less than half of May's21.5% rate. On average, active inventory in June was50.6% below pre-pandemic 2017–2019 levels. - Both pending listings (-
16.7% ), or homes under contract, and newly listed homes (-25.7% ) declined year over year. The number of homes newly-listed for sale declined at a faster rate in June than May's22.7% decrease. - Among the 50 largest metros, inventory growth is being driven almost exclusively by the South, which saw the most growth (+
24.1% ) in homes for sale compared to last June, led bySan Antonio (+65.7% ),Nashville, Tenn. (63.3% ) andNew Orleans (60.0% ). All other regions saw declining annual growth in active inventory in June. - Active inventory decreased in 28 out of 50 of the largest metros compared to last year. Western markets reported the largest yearly declines, with the top three in
California metros:San Jose , (-44.1% ),San Diego (-35.9% ), andSacramento (-33.4% ). - In June, none of the 50 largest metro areas saw new listings increase over last year.
Homes continue to linger longer on the market, giving buyers more time to search
Despite a significant slowing from the frenzied pace of the past couple years, in most areas of the country, the housing market continues to move quicker than it did in the pre-pandemic era, with homes today selling more than a week faster on average than in pre-pandemic June 2017-2019.
- The typical home spent 43 days on market in June, 14 days longer than this time last year, but 10 fewer days than they typically did in the average June 2017–2019.
- Across the 50 largest
U.S. metros, in June the typical home spent 44 days on the market, 13 days more than the previous June. This trend was seen across all regions, with larger metros in the South seeing the greatest increase (+15 days), followed by the West (+9 days), Northeast (+7 days) and Midwest (+6 days). Homes in Western metros were also spending one more day on the market than pre-pandemic times, but in all other regions homes were still selling more quickly. - All of the 50 largest metros saw an increase in time on market compared to the previous year. Time on market increased the most in
Raleigh, N.C. (+26 days),Austin, Texas (+25 days), andMiami (+25 days).
June 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) |
-2.2 % | -0.4 % | 9.5 % | -29.1 % | 40 | 13 | 13.6 % | -0.5 pp | ||
-6.8 % | -5.3 % | 47.8 % | -31.1 % | 45 | 25 | 33.0 % | 1.1 pp | ||
0.7 % | 3.9 % | -18.2 % | -24.0 % | 36 | 6 | 10.8 % | -2.0 pp | ||
0.5 % | 3.6 % | 22.8 % | -22.4 % | 43 | 14 | 12.2 % | 1.8 pp | ||
15.5 % | 9.4 % | -15.9 % | -30.0 % | 24 | 7 | 12.0 % | -2.3 pp | ||
13.5 % | 9.9 % | -3.8 % | -18.1 % | 31 | 10 | 7.1 % | 0.3 pp | ||
0.1 % | 2.5 % | 10.4 % | -34.9 % | 38 | 12 | 12.6 % | 0.0 pp | ||
6.3 % | 0.2 % | -23.4 % | -26.4 % | 34 | 5 | 9.7 % | -2.8 pp | ||
20.0 % | 9.7 % | -1.7 % | -22.4 % | 30 | 8 | 10.3 % | 0.8 pp | ||
10.4 % | 4.8 % | -9.4 % | -25.1 % | 38 | 5 | 10.5 % | 0.5 pp | ||
14.1 % | 6.3 % | -1.3 % | -24.5 % | 23 | 7 | 14.4 % | 2.3 pp | ||
-3.5 % | -3.6 % | 30.1 % | -26.4 % | 36 | 14 | 20.5 % | 3.8 pp | ||
0.0 % | 4.0 % | 6.1 % | -26.1 % | 29 | 13 | 20.3 % | -1.2 pp | ||
-3.6 % | -0.3 % | -15.9 % | -27.7 % | 31 | 8 | 14.2 % | -2 pp | ||
17.4 % | 3.5 % | -27.9 % | -24.9 % | 18 | 1 | 5.9 % | -0.7 pp | ||
-5.1 % | -2.4 % | 23.6 % | -20.9 % | 40 | 9 | 16.2 % | 0.0 pp | ||
9.4 % | 6.7 % | 18.3 % | -24.9 % | 36 | 10 | 16.9 % | 3.9 pp | ||
-0.1 % | -1.7 % | 39.3 % | -27.8 % | 45 | 17 | 18.7 % | 4.7 pp | ||
13.6 % | 11.1 % | 11.1 % | -24.8 % | 50 | 12 | 12.0 % | 3.8 pp | ||
N/A | N/A | N/A | N/A | 45 | N/A | 13.6 % | N/A | ||
17.7 % | 6.7 % | -20.8 % | -30.8 % | 39 | 9 | 8.7 % | -6.0 pp | ||
8.3 % | 6.8 % | -4.4 % | -23.5 % | 29 | 7 | 13.3 % | -0.4 pp | ||
7.3 % | 2.6 % | 59.4 % | -18.9 % | 44 | 14 | 16.2 % | 6.3 pp | ||
-3.2 % | 1.6 % | 30.4 % | -28.8 % | 62 | 25 | 12.7 % | 1.0 pp | ||
13.5 % | 10.2 % | -25.0 % | -22.6 % | 29 | 2 | 8.6 % | -1.7 pp | ||
8.9 % | 3.8 % | -4.7 % | -17.8 % | 31 | 3 | 11.2 % | 0.2 pp | ||
5.2 % | 1.3 % | 63.3 % | -24.9 % | 34 | 19 | 20.8 % | 3.5 pp | ||
-1.4 % | -0.2 % | 60.0 % | -18.7 % | 58 | 19 | 20.1 % | 2.2 pp | ||
11.0 % | 17.7 % | -14.3 % | -26.7 % | 51 | 12 | 8.2 % | -2.3 pp | ||
8.7 % | 0.8 % | 29.3 % | -24.1 % | 45 | 15 | 15.4 % | 4.5 pp | ||
-1.2 % | -0.5 % | 21.4 % | -29.0 % | 46 | 18 | 14.9 % | 0.8 pp | ||
1.9 % | 2.9 % | -13.9 % | -26.0 % | 45 | 10 | 11.5 % | -1.5 pp | ||
-1.4 % | -4.9 % | -16.0 % | -47.8 % | 44 | 21 | 19.8 % | -9.5 pp | ||
0.2 % | -3.7 % | -0.9 % | -18.9 % | 47 | 10 | 14.2 % | -0.5 pp | ||
6.7 % | -0.5 % | 8.1 % | -25.1 % | 34 | 10 | 16.1 % | -5.2 pp | ||
14.5 % | 0.2 % | -19.4 % | -33.6 % | 31 | 9 | 6.4 % | -2.8 pp | ||
-4.2 % | -3.2 % | 19.8 % | -33.2 % | 43 | 26 | 12.3 % | -1.3 pp | ||
12.4 % | 8.4 % | 1.9 % | -27.4 % | 40 | 9 | 7.1 % | -0.4 pp | ||
-3.2 % | 1.0 % | -18.1 % | -35.5 % | 44 | 13 | 11.9 % | -7.6 pp | ||
19.6 % | 11.4 % | -11.3 % | -18.9 % | 12 | 1 | 7.0 % | -2.2 pp | ||
5.6 % | -2.9 % | -33.4 % | -31.1 % | 33 | 4 | 12.4 % | -12.3 pp | ||
-3.9 % | -2.0 % | 65.7 % | -18.3 % | 47 | 17 | 22.7 % | 8.3 pp | ||
15.4 % | 6.2 % | -35.9 % | -36.7 % | 31 | 7 | 10.7 % | -7.1 pp | ||
0.4 % | -1.0 % | -30.0 % | -33.7 % | 32 | 8 | 10.1 % | -4.7 pp | ||
0.2 % | -0.8 % | -44.1 % | -33.0 % | 29 | 5 | 8.1 % | -9.1 pp | ||
2.8 % | 3.3 % | -25.1 % | -37.0 % | 29 | 7 | 12.5 % | -5.8 pp | ||
3.5 % | 5.1 % | -3.1 % | -18.2 % | 39 | 7 | 10.3 % | -0.1 pp | ||
-1.0 % | 0.6 % | 30.5 % | -29.0 % | 46 | 20 | 18.8 % | 0.5 pp | ||
12.9 % | 6.5 % | -9.6 % | -27.8 % | 29 | 6 | 11.5 % | -1.5 pp | ||
9.2 % | 4.9 % | -26.3 % | -30.2 % | 32 | 6 | 9.1 % | -5 pp |
*Some Las Vegas listing metrics have been excluded while data is under review. |
Methodology
Realtor.com® housing data as of June 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
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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