Realtor.com® May Housing Report: Inventory Stages a Comeback While Home Prices Soar to All-Time High

Rhea-AI Summary

In May 2022, the U.S. housing market showed signs of recovery, with active inventory increasing by 8.0% year-over-year for the first time since June 2019. However, the median national home price surged to a record $447,000, reflecting a 17.6% rise compared to last year. Despite the uptick in inventory, homes sold more quickly, with the average time on the market dropping by a week to 31 days. Key contributors to the changing landscape include rising new listings and moderating buyer demand, although the increase in larger homes continues to keep prices high.

Positive

• Active inventory rose 8.0% year-over-year, marking the first increase since June 2019.
• Median listing price reached an all-time high of $447,000, showing a robust 17.6% yearly growth.
• Typical home sale time decreased to 31 days, a full week faster than last year.

Negative

• Active inventory remains 48.5% lower than pre-pandemic levels.
• Pending listings declined 12.6% year-over-year, indicating weakening buyer demand.

In May, active inventory increased year-over-year (+8.0%) for the first time in nearly three years, but remained 48.5% lower than at the start of the pandemic

SANTA CLARA, Calif., June 2, 2022 /PRNewswire/ -- New data suggests the U.S. housing market hit a turning point in its supply struggle in May, as active inventory recorded the first year-over-year increase since June 2019, according to the Realtor.com^® Monthly Housing Trends Report released today. At the same time, the median national home price soared to an all-time high of $447,000 and buyers snatched up listings a week faster than last year.

"Among key factors fueling the inventory comeback are new sellers, who are listing homes at a rate not seen since 2019, as well as moderating demand, with pending listings declining year-over-year in May," said Danielle Hale, Chief Economist for Realtor.com. "While this real estate refresh is welcome news in a still-undersupplied market, it has yet to make a dent in home price growth, partially due to increases in newly-listed, larger homes and because the typical seller outlook is quite high, likely shaped by recent experiences of homeowners who sold. Importantly, as 72% of this year's sellers also plan to purchase a home, seller expectations will likely start to reflect buyers' needs. In an early sign, the rate of sellers making price cuts accelerated in May."

May 2022 Housing Metrics – National

Metric	Change over May 2021	Change over May 2019
Median listing price	17.6% (to $447,000)	37.8%
Median listing price per square foot	16.2%	48.4%
Share of active listings with price reductions	4.3 pct. pts. (to 10.5%)	-5.2 pct. pts.
Active listings	8.0%	-59.6%
New listings	6.3%	-8.6%
Median days on market	-6 days (to 31 days)	-25 days

Inventory grows for the first time in three years, as more new sellers enter the market

The U.S. inventory of active listings grew year-over-year for the first time since June 2019, with this comeback driven by two key trends. First, new listings reached the highest level of any month in nearly three years, as rising numbers of sellers might be more confident in pursuing plans to list than last Spring when COVID vaccines were just rolling out. Second, higher housing costs are spurring a moderation in buyer demand. This is reflected in May's bigger year-over-year declines in pending listings – those at various stages of the selling process that are not yet sold – compared to April, a sign of softening in the turnover rate of for-sale homes.

• Nationally, the number of active listings increased 8.0% year-over-year in May, but remained 48.5% below typical levels in May 2020 at the onset of COVID.
• Compared to last month's year-over-year changes, May's national data showed a significant improvement in the new listings trend (+6.3% vs. 1.3%) and a bigger decline in pending listings (-12.6% vs. -8.7%).
• Among May's new listings, the share of smaller homes (up to 1750 square feet) declined year-over-year (to 45.7% from 47.3%), while those with 1,750-plus square feet increased from 52.7% to 54.3%.
• On average in the 50 largest U.S. markets, active inventory grew by double-digits (+14.9%) over May 2021 levels, with the biggest increases in the West (+33.6%) and South (+18.3%), led by Austin, Texas (+85.8%), Phoenix (+67.1%) and Sacramento, Calif. (+54.6%). Active listings declined on a year-over-year basis in just 8 markets.
• Thirty markets posted annual gains in newly-listed homes, with the biggest increases registered in southern metros: Raleigh, N.C. (+27.9%), Nashville, Tenn. (+22.8%), and Las Vegas (+20.7%).

Asking prices for homes break another record, as seller expectations remain high

May's increase in for-sale home options combined with softening buyer demand would typically drive a cooldown in home prices, but data shows that is not yet the case. In fact, the yearly growth rate in the U.S. median listing price accelerated from last month's pace as the median listing price approached $450,000 after just crossing the $400,000 threshold in March. From asking prices per square foot to pending listing prices, May housing trends suggest that a few factors are potentially driving the continued home price surge. These include a rising share of newly-listed, larger homes by square footage and some sellers not yet adjusting to shifting supply and demand dynamics, including buyer interest in less expensive homes.

• The U.S. median listing price hit an all-time high of $447,000 in May, rising at a faster year-over-year pace (+17.6%) than last month (+14.2%). On a square foot basis, asking prices for active listings increased 16.2% over May 2021 levels.
• In a potential sign of softening buyer demand at the national level, the median listing price of a typical pending listing actually decelerated in May over April, to a yearly rate of 16.2% from 17.2%. Additionally, the national share of listings that had their price reduced jumped to 10.5% in May from 7.0% in April, but the rate remains well below typical pre-COVID levels.
• Active listing prices in the nation's largest metros grew by an average of 13.0% compared to last year in May, with the biggest gains recorded in Miami (+45.9%), Nashville (+32.5%), and Orlando, Fla. (+32.4%).
• In May, median listing prices were down year-over-year in just six large markets, which were: Pittsburgh (-10.5%), Rochester, N.Y. (-9.7%), Cincinnati (-9.6%), Cleveland (-2.3%), Detroit (-1.8%), and Buffalo, N.Y. (-1.2%).

Buyers are still quickly snatching up homes, at a week faster than last year

Similar to norms one would expect to see in home price trends, the increase in for-sale home options combined with softening buyer demand would typically drive a deceleration in time on market. However, time on market data did not yet show this trend in May, as buyers snatched up listings more quickly than in any month in the Realtor.com^® data history going back to July 2016 – a record that typically isn't hit until the Summer season. For some homebuyers who have yet to be priced out of the market but can't afford to compete by making a larger down payment, acting quickly might give them an edge.

• In May, the typical U.S. home spent 31 days on the market , a full week less (-6 days) than last year and down 27 days compared to typical May 2017 to 2019 timing.
• Across the 50 largest U.S. metros, the typical home spent 26 days on market, down six days year-over-year, with the biggest declines registered in the South (-7 days).
• At the market level, homes saw the greatest yearly decline in time spent on market in Miami (-28 days), followed by a three-way tie between Hartford, Conn., Seattle and San Jose, Calif. (-12 days).
• Just one market posted a year-over-year increase in time on market: Detroit (-1 day), where homes still moved at a close to record-fast pace.

May 2022 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 (Pct. Pts.)
Atlanta-Sandy Springs-Roswell, Ga.	$428,000	9.8%	13.3%	10.6%	2.2%	29	-5	9.8%	4.4%
Austin-Round Rock, Texas	$627,000	25.6%	23.4%	85.8%	19.1%	16	-10	18.3%	14.7%
Baltimore-Columbia-Towson, Md.	$352,000	0.7%	5.5%	2.3%	-7.3%	31	-3	10.1%	2.5%
Birmingham-Hoover, Ala.	$288,000	3.2%	10.2%	12.5%	3.5%	35	-5	8.4%	3.5%
Boston-Cambridge-Newton, Mass.-N.H.	$772,000	10.3%	3.9%	-6.9%	-2.2%	16	-7	10.0%	0.9%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	$247,000	-1.2%	5.9%	6.6%	1.0%	24	-8	5.7%	1.4%
Charlotte-Concord-Gastonia, N.C.-S.C.	$435,000	11.5%	16.9%	21.1%	17.0%	23	-6	12.0%	4.6%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	$360,000	1.4%	0.5%	-14.8%	-10.0%	30	-7	8.8%	1.3%
Cincinnati, Ohio-Ky.-Ind.	$330,000	-9.6%	2.7%	2.7%	5.0%	29	-5	7.3%	1.6%
Cleveland-Elyria, Ohio	$215,000	-2.3%	7.0%	-1.2%	-9.3%	36	0	8.4%	2.9%
Columbus, Ohio	$340,000	13.3%	15.3%	7.2%	-4.5%	14	0	8.5%	1.1%
Dallas-Fort Worth-Arlington, Texas	$473,000	24.5%	21.9%	34.4%	18.0%	23	-8	9.4%	4.4%
Denver-Aurora-Lakewood, Colo.	$695,000	16.0%	4.7%	49.6%	16.5%	10	-2	11.9%	7.5%
Detroit-Warren-Dearborn, Mich.	$275,000	-1.8%	4.4%	19.8%	2.1%	23	1	12.7%	4.4%
Hartford-West Hartford-East Hartford, Conn.	$363,000	17.1%	22.6%	N/A	-0.9%	18	-12	5.6%	-1.1%
Houston-The Woodlands-Sugar Land, Texas	$399,000	10.9%	12.0%	4.3%	4.5%	35	-3	11.6%	4.8%
Indianapolis-Carmel-Anderson, Ind.	$315,000	14.5%	15.4%	14.2%	11.2%	30	-8	9.9%	3.0%
Jacksonville, Fla.	$439,000	26.2%	26.0%	22.5%	8.4%	30	-8	9.6%	4.2%
Kansas City, Mo.-Kan.	$399,000	16.2%	13.7%	24.4%	-2.5%	38	-2	5.9%	1.8%
Las Vegas-Henderson-Paradise, Nev.	$500,000	28.2%	26.2%	18.6%	20.7%	22	-2	20.1%	12.3%
Los Angeles-Long Beach-Anaheim, Calif.	$972,000	1.4%	6.7%	5.1%	-3.4%	25	-9	10.5%	5.3%
Louisville/Jefferson County, Ky.-Ind.	$292,000	6.4%	8.7%	19.1%	-1.3%	22	-3	11.1%	4.2%
Memphis, Tenn.-Miss.-Ark.	$293,000	24.9%	28.9%	21.4%	5.0%	33	-5	7.4%	2.6%
Miami-Fort Lauderdale-West Palm Beach, Fla.	$627,000	45.9%	27.4%	-32.1%	-0.4%	37	-28	8.4%	3.0%
Milwaukee-Waukesha-West Allis, Wis.	$364,000	15.5%	9.1%	0.7%	-5.3%	30	-5	7.4%	1.3%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	$422,000	17.3%	10.1%	2.4%	-0.7%	28	-5	8.4%	4.4%
Nashville-Davidson--Murfreesboro--Franklin, Tenn.	$550,000	32.5%	19.8%	38.1%	22.8%	14	-2	13.2%	7.7%
New Orleans-Metairie, La.	$349,000	2.8%	0.1%	8.6%	-2.6%	39	-11	14.5%	5.8%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	$720,000	10.9%	24.7%	-0.8%	0.8%	43	-1	8.9%	1.1%
Oklahoma City, Okla.	$329,000	13.5%	21.1%	23.4%	N/A	30	-11	7.1%	0.1%
Orlando-Kissimmee-Sanford, Fla.	$450,000	32.4%	28.2%	6.6%	10.3%	29	-9	9.1%	3.8%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	$340,000	0.0%	6.6%	4.1%	4.9%	35	-3	10.4%	2.8%
Phoenix-Mesa-Scottsdale, Ariz.	$550,000	22.2%	21.0%	67.1%	13.7%	23	-8	17.5%	11.6%
Pittsburgh, Pa.	$240,000	-10.5%	-2.7%	4.6%	-1.5%	39	-5	12.2%	4.2%
Portland-Vancouver-Hillsboro, Ore.-Wash.	$598,000	8.7%	11.1%	19.2%	3.0%	26	-7	14.6%	5.0%
Providence-Warwick, R.I.-Mass.	$467,000	16.9%	13.7%	2.1%	-5.8%	22	-8	6.7%	2.7%
Raleigh, N.C.	$494,000	21.2%	18.6%	41.6%	27.9%	9	-11	7.8%	4.2%
Richmond, Va.	$380,000	8.6%	12.3%	-15.3%	-7.8%	33	-5	4.8%	0.9%
Riverside-San Bernardino-Ontario, Calif.	$599,000	14.2%	17.0%	51.6%	6.3%	27	-4	13.9%	9.2%
Rochester, N.Y.	$225,000	-9.7%	-1.2%	0.9%	5.6%	10	-1	7.9%	1.7%
Sacramento--Roseville--Arden-Arcade, Calif.	$649,000	11.0%	11.7%	54.6%	5.6%	23	-5	17.2%	11.5%
San Antonio-New Braunfels, Texas	$396,000	25.9%	22.4%	44.1%	9.5%	32	-5	11.4%	6.8%
San Diego-Carlsbad, Calif.	$926,000	15.9%	14.4%	9.8%	-6.9%	21	-5	11.5%	7.1%
San Francisco-Oakland-Hayward, Calif.	$1,129,000	3.8%	6.6%	32.5%	2.5%	23	-6	9.1%	4.7%
San Jose-Sunnyvale-Santa Clara, Calif.	$1,494,000	15.1%	10.2%	22.9%	3.2%	17	-12	9.9%	4.6%
Seattle-Tacoma-Bellevue, Wash.	$834,000	22.6%	11.3%	38.8%	17.9%	17	-12	9.8%	6.1%
St. Louis, Mo.-Ill.	$277,000	6.9%	7.5%	4.4%	-2.1%	37	-8	7.3%	1.3%
Tampa-St. Petersburg-Clearwater, Fla.	$437,000	30.6%	26.9%	35.5%	11.2%	27	-8	11.5%	5.8%
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$359,000	12.2%	12.0%	-19.3%	-15.1%	19	-2	10.1%	3.1%
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	$588,000	15.3%	4.7%	1.5%	-5.5%	27	-4	10.1%	3.6%

*Note: Oklahoma City new listing count growth and Hartford active listing count growth are not available while data is under review.

Methodology

Realtor.com^® housing data as of May 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.

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FAQ

What were the May 2022 housing market trends in the U.S. for NWSA and NWS?

In May 2022, active inventory increased by 8.0% year-over-year while the median home price reached $447,000, up 17.6% from the previous year.

How fast are homes selling in the U.S. as of May 2022?

Homes sold more quickly, with the average time on the market reduced to 31 days, one week faster than in May 2021.

What is the significance of the 8.0% inventory increase for NWSA and NWS?

The 8.0% year-over-year increase in active inventory is the first rise since June 2019, indicating a potential trend towards greater supply in the housing market.

How does the median home price trend affect buyers in May 2022?

The median home price at $447,000, up 17.6% year-over-year, signifies continued affordability challenges for buyers.

What is the state of buyer demand as of May 2022 for NWSA and NWS?

Buyer demand appears to be softening, evident from a 12.6% decline in pending listings compared to last year.