Realtor.com® March Housing Report: Home Prices Hit $405,000 For the First Time Ever

Rhea-AI Summary

In March 2022, U.S. home prices reached an all-time high of $405,000, marking a 13.5% year-over-year increase. Despite high prices, demand is moderating as buyers face affordability challenges. Inventory is expected to improve in June or July due to increased new construction and less aggressive buyer competition. March saw an 18.9% decline in active listings compared to last year, but the rate of decline is slowing. Homes sold faster, averaging 38 days on the market, 11 days less than last year, indicating potential relief for buyers.

Positive

• Expected inventory increase during summer months due to new construction.
• Moderate buyer demand may lead to less competition.
• Median listing price growth indicates sustained value in the housing market.

Negative

• Active listings decreased by 18.9% year-over-year, indicating supply issues.
• The share of price reductions increased slightly, signaling softening demand.

Inventory is predicted to hit positive territory year-over-year in June or July and provide some much needed relief for buyers who can afford to persist in their search for a home

SANTA CLARA, Calif., March 31, 2022 /PRNewswire/ -- Home prices hit $405,000 for the first time ever in March, but data reveals there is some hope on the horizon for pandemic-era buyers. With demand beginning to moderate as some home shoppers are priced out of the market and new construction at near 16-year highs, inventory is expected to hit positive territory year-over-year this summer, according to the Realtor.com^® Monthly Housing Trends Report released today.

"Despite the $405,000 price tag, March data reveals we are starting to take some steps towards a more balanced market," said Danielle Hale, Chief Economist for Realtor.com^®. "Buyer demand is moderating in the face of high costs, and we're beginning to see more homeowners take price cuts on their listings and overall inventory declines lessen in response. Assuming all these factors and new construction hold steady, we could begin to see inventory increases this summer – welcome news for buyers who have endured pandemic home shopping and can continue their journey despite higher buying costs. For buyers currently in the market, there's good reason to aim to find a home before interest rates increase further. But if it takes longer than a few months, don't give up hope, as there may be more to choose from in the summer months."

March 2022 Housing Metrics – National

Metric	Change over March 2021	Change over March 2020
Median Listing Price	13.5% (to $405,000)	26.5%
Active Listings	-18.9%	-62.3%
New listings	-3.4%	-11.1%
Median Days on Market	-11 (to 38 days)	-21

Home prices hit $405,000 with an increase in price reductions

The median U.S. listing price grew to a new all-time high of $405,000 in March as prices rose 13.5% year-over-year, faster than is typical for this time of year, and about the same annual growth rate as last month. At the same time, data shows the beginnings of softening demand and sellers responding to it. The share of homes having their price reduced increased slightly from 5.8% last March to 6.0% this year, but still remains 9 percentage points below typical 2017 to 2019 levels. Twenty-five of the largest 50 metros saw an increasing share of price reductions in March, compared to 18 in February.

Listing prices in the top 50 metros grew by an average of 9.1% in March over last year. Their price growth has been lower than other areas across the country, but much of this can still be attributed to new inventory bringing relatively smaller homes to the market this year. The median listing price per square foot in these large metros grew by 12.5% over the same period, not as high as, but close to, the national rate of 15.7%. Miami (+37.0%), Las Vegas (+35.2%), and Tampa, Fla. (+32.0%) posted the highest year-over-year median list price growth in March. Austin, Texas homes showed the greatest growth in the share of homes with price reductions compared to last year (+2.9 percentage points), followed by Sacramento, Calif. and Memphis, Tenn. (+2.3 percentage points).

Inventory declines lessen as some buyers are priced out

Nationally, the inventory of homes actively for sale on a typical day in March decreased by 18.9% over last year, a smaller rate of decline compared to the 24.5% drop in February. However, this moderation in active inventory is not a supply-driven improvement. In March, newly-listed homes decreased by 3.4% year-over-year and sellers were still listing at rates 12.2% lower than typical 2017-2019 March levels. The number of pending listings (listings that are at various stages of the closing process, but are not yet sold) has declined by 7.4% compared to last March, indicating that a moderation in demand is softening the rate of home sales. This is likely caused by the affordability one-two-punch of rising interest rates and all-time high listing prices. For buyers still actively searching for a home, this could provide some relief as competition declines. However, it indicates that some homebuyers may have put plans on hold, despite the fact that the current rental market offers little relief from high prices. 

The inventory of homes actively for sale in the 50 largest U.S. metros overall decreased by 16.0% year-over-year in March, an improvement in the rate of decline compared to last month's 22.1% decrease. Inventory declined over March 2021 in 44 out of 50 of the largest metros, but six metros saw inventory growth, up from four last month: Riverside, Calif. (+17.8%), Sacramento (+7.6%), Kansas City (+6.0%), Austin (+3.9%), Detroit (+3.5%), and Phoenix (+0.4%). Eight metros also saw the number of newly-listed homes increase compared to last year, led by Rochester, N.Y. (+7.2%), Detroit (+6.7%), and Memphis (+5.4%).

Homes Consistently Spend Less Time on the Market Than Previous Years

The typical home spent 38 days on the market this March, which is 11 days less than last year. Homes spent 29 fewer days on the market than typical March 2017-2019 timing. However, while homes are selling more quickly than last year, the gap has been shrinking as demand moderates. Last month, homes spent 17 days less on the market than the previous year. In March, the gap narrowed down to 11 days.

In the 50 largest U.S. metros, the typical home spent 31 days on the market, and homes spent 8 fewer days on the market, on average, compared to March 2021. Among larger metropolitan areas, homes saw the greatest yearly decline in time spent on market in the southern metros of Miami (-32 days), Raleigh, S.C. (-19 days), and Orlando, Fla. (-19 days). Only Buffalo, N.Y. saw time on market increase compared to last year (+2 days). 

March 2022 Housing Metrics – 50 Largest U.S. Metros

Metro	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 YoY	Price Reduced Share	Price Reduced Share YoY
Atlanta-Sandy Springs-Roswell, Ga.	$399,000	8.9%	11.7%	-11.4%	-8.6%	33	-5	5.8%	0.5%
Austin-Round Rock, Texas	$600,000	30.0%	29.1%	2.9%	-13.5%	17	-18	5.3%	2.9%
Baltimore-Columbia-Towson, Md.	$325,000	0.0%	6.7%	-6.7%	-6.3%	33	-5	7.6%	1.7%
Birmingham-Hoover, Ala.	$259,000	-2.2%	8.8%	-15.3%	1.2%	37	-9	6.7%	1.9%
Boston-Cambridge-Newton, Mass.-N.H.	$755,000	10.7%	13.2%	-27.5%	-13.9%	21	-4	5.4%	-0.6%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	$225,000	-7.2%	5.1%	-12.6%	-4.7%	49	2	3.0%	0.4%
Charlotte-Concord-Gastonia, N.C.-S.C.	$410,000	8.5%	15.5%	-18.8%	-8.8%	20	-14	6.5%	0.1%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	$337,000	-3.7%	-1.0%	-24.0%	-12.6%	35	-8	6.1%	-0.3%
Cincinnati, Ohio-Ky.-Ind.	$329,000	-2.5%	11.1%	-19.0%	-1.0%	46	-2	4.2%	-0.6%
Cleveland-Elyria, Ohio	$190,000	-8.5%	2.0%	-5.8%	-2.1%	45	-3	6.2%	0.1%
Columbus, Ohio	$329,000	5.7%	12.4%	-1.4%	-9.9%	18	-10	5.6%	0.1%
Dallas-Fort Worth-Arlington, Texas	$425,000	17.6%	18.4%	-21.0%	-3.4%	28	-13	4.2%	-0.2%
Denver-Aurora-Lakewood, Colo.	$663,000	18.8%	8.2%	-18.8%	-9.4%	9	-7	3.6%	-0.2%
Detroit-Warren-Dearborn, Mich.	$229,000	-15.4%	-0.3%	3.6%	6.7%	29	-5	9.5%	1.8%
Hartford-West Hartford-East Hartford, Conn.	$355,000	18.2%	24.1%	N/A	-17.0%	33	-6	4.1%	-1.7%
Houston-The Woodlands-Sugar Land, Texas	$374,000	9.5%	13.7%	-17.2%	-1.3%	39	-12	7.5%	-0.2%
Indianapolis-Carmel-Anderson, Ind.	$299,000	10.0%	13.7%	-18.8%	-1.6%	37	-9	6.9%	0.1%
Jacksonville, Fla.	$406,000	21.5%	22.6%	-20.5%	-8.6%	38	-6	4.5%	-0.5%
Kansas City, Mo.-Kan.	$390,000	11.4%	13.8%	6.7%	-2.4%	48	-3	3.6%	0.5%
Las Vegas-Henderson-Paradise, Nev.	$480,000	35.2%	27.5%	-17.4%	-1.0%	23	-8	9.2%	1.7%
Los Angeles-Long Beach-Anaheim, Calif.	$950,000	-5.0%	2.7%	-27.0%	-13.1%	28	-5	4.3%	-0.9%
Louisville/Jefferson County, Ky.-Ind.	$290,000	9.6%	11.0%	-6.1%	-1.3%	30	-4	7.1%	0.3%
Memphis, Tenn.-Miss.-Ark.	$227,000	-4.6%	11.6%	-0.2%	5.4%	39	-10	6.5%	2.3%
Miami-Fort Lauderdale-West Palm Beach, Fla.	$547,000	37.0%	25.0%	-51.5%	-12.1%	43	-33	4.6%	-1.8%
Milwaukee-Waukesha-West Allis, Wis.	$295,000	-2.5%	3.4%	-4.7%	-7.1%	40	-6	5.6%	0.6%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	$415,000	12.2%	-2.3%	-17.2%	0.7%	32	-4	3.7%	-0.5%
Nashville-Davidson--Murfreesboro--Franklin, Tenn.	$500,000	25.0%	20.4%	-30.2%	-6.4%	14	-9	6.5%	0.8%
New Orleans-Metairie, La.	$350,000	3.0%	2.7%	-21.9%	5.1%	46	-8	10.0%	0.4%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	$699,000	7.8%	30.9%	-8.1%	3.8%	47	-13	6.3%	-0.6%
Oklahoma City, Okla.	$345,000	18.9%	18.1%	-19.2%	N/A*	39	-8	6.1%	-0.5%
Orlando-Kissimmee-Sanford, Fla.	$413,000	27.9%	27.7%	-38.2%	-1.2%	32	-19	5.1%	-1.1%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	$315,000	-3.1%	4.4%	-5.2%	3.2%	38	-10	7.5%	0.1%
Phoenix-Mesa-Scottsdale, Ariz.	$502,000	19.4%	22.8%	2.4%	-5.1%	30	-2	6.4%	1.4%
Pittsburgh, Pa.	$223,000	-13.7%	-4.8%	-7.4%	-6.8%	61	0	7.9%	0.8%
Portland-Vancouver-Hillsboro, Ore.-Wash.	$575,000	11.6%	14.4%	-11.9%	-3.9%	30	-6	9.7%	0.3%
Providence-Warwick, R.I.-Mass.	$437,000	9.3%	13.0%	-24.6%	-14.7%	34	-9	3.8%	0.0%
Raleigh, N.C.	$449,000	12.5%	21.9%	-47.9%	-17.6%	11	-19	3.3%	-1.6%
Richmond, Va.	$360,000	-3.4%	8.6%	-31.1%	-10.4%	34	-11	2.8%	-0.8%
Riverside-San Bernardino-Ontario, Calif.	$573,000	14.6%	17.6%	17.8%	0.3%	24	-1	5.5%	2.0%
Rochester, N.Y.	$220,000	-17.0%	-2.4%	-18.6%	7.2%	12	-10	5.0%	-0.4%
Sacramento--Roseville--Arden-Arcade, Calif.	$634,000	15.9%	16.0%	8.2%	-2.1%	23	-5	6.8%	2.3%
San Antonio-New Braunfels, Texas	$357,000	15.4%	18.4%	-9.4%	-0.7%	39	-9	5.4%	0.9%
San Diego-Carlsbad, Calif.	$884,000	10.5%	10.3%	-24.9%	-6.4%	23	-7	3.8%	-1.1%
San Francisco-Oakland-Hayward, Calif.	$1,044,000	2.2%	4.9%	-10.7%	-3.9%	23	-6	4.4%	0.3%
San Jose-Sunnyvale-Santa Clara, Calif.	$1,399,000	13.5%	10.7%	-34.6%	-10.6%	17	-9	2.6%	-3.3%
Seattle-Tacoma-Bellevue, Wash.	$755,000	16.2%	7.7%	-27.7%	-14.5%	23	-8	2.8%	-0.7%
St. Louis, Mo.-Ill.	$275,000	6.0%	7.7%	-17.7%	-9.1%	45	-15	5.0%	-0.9%
Tampa-St. Petersburg-Clearwater, Fla.	$399,000	32.0%	29.5%	-22.0%	-6.0%	32	-8	5.3%	-0.6%
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$337,000	8.7%	10.6%	-34.2%	-20.8%	20	-8	5.4%	-0.9%
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	$545,000	10.1%	4.1%	-16.8%	-12.6%	28	-4	5.6%	-0.2%

Methodology
Realtor.com^® housing data as of March 2022. Listings include active inventory of existing single-family homes and condos/townhomes for the given level of geography; new construction is excluded unless listed via an MLS. *Oklahoma City's March new listings data is currently under review.

Note: With the release of its January 2022 housing trends 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^® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com^® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com^® is a trusted provider of 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
rachel.conner@move.com 

 

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SOURCE Realtor.com

FAQ

What are the current U.S. home prices as of March 2022?

The median U.S. home price reached $405,000 in March 2022, a 13.5% increase from the previous year.

How is the housing inventory expected to change in summer 2022?

Inventory is predicted to improve, potentially entering positive territory by June or July 2022, offering relief to homebuyers.

What trends are affecting homebuyer demand in 2022?

High home prices and rising interest rates are moderating buyer demand, with some buyers being priced out of the market.

How quickly are homes selling in March 2022?

Homes are currently selling faster, averaging 38 days on the market, which is 11 days less than the same period last year.

What market changes are expected for home prices?

Despite high prices, there have been some price reductions, indicating a potential softening in demand amid rising costs.