The U.S. housing market is offering home shoppers more options this fall than in 2021, as inventory increased 26.9% year-over-year in September, according to a new report from realtor.com® released this week.
Realtor.com®’s Monthly Housing Trends Report states that while yearly listing price growth remained in the double-digits in September at +13.9%, the pace continued to moderate, suggesting that a rise in relatively affordable for-sale homes could be in store for buyers in the final months of 2022.
According to the report, the national inventory of homes actively for sale on a typical day in September increased 26.9% year-over-year, holding on par with the August pace. Newly-listed homes were down 9.8% year-over-year, a slight improvement over last month’s rate of decline of -13.0%. Additionally, the U.S. median listing price was still at a high of $427,000, up 13.9% year-over-year, but was down from June’s peak median of $449,000 and annual growth rate of +18.2%.
Key highlights:
- Compared to last year, housing inventory increased in 36 out of 50 of the largest metros, led by markets in the West and South, with Phoenix at +167.3%, Raleigh at +166% and Nashville at +125.3%.
- In September, active listings dropped year-over-year in just one region, the Northeast at -6.0%, and new listings declined from September 2021 levels in all four regions.
- Among the 50 largest U.S. metros, just eight saw the number of new sellers increase over September 2021 levels: New Orleans at +119.3%, Nashville at +19.6%, Tampa at +9.2%, Dallas at +9%, Birmingham at +6%, Houston at +3.6%, San Antonio at +2.9% and Raleigh at +2%.
- Nationally, the share of homes having their price reduced grew from 11.0% last September to 19.5%, and also climbed higher than typical 2017 and 2019 levels.
- Southern and midwestern markets (+11.8%, on average) led the charge in yearly listing price growth in September, with the biggest increases in Miami at +28.3%, Memphis at +27.3%, and Milwaukee at +27%, and declines only in New Orleans at -2.3% and Pittsburgh at -0.8%.
- Western metros posted the biggest gains in the share of listings with price reductions, led by Phoenix at +32.3%, Austin at +27.4% and Las Vegas +20%.
- The typical U.S. home spent 50 days on the market in September, up seven days year-over-year compared to an annual increase of four days in August, and time on market was still 18 days faster than the typical September 2017-2019 pace.
- Time on market slowed similarly across the 50 largest U.S. metros, on average, up seven days year-over-year to a median of 43 days, with the biggest yearly time on market increases in Austin at +23 days, Raleigh at +23 days, Phoenix at +17 days and Las Vegas at +17 days.
- In September, homes sold more quickly than last year in just five metros: New Orleans at -9 days, Richmond at -6 days, Miami at -2 days, Atlanta at -1 days and Houston at -1 day.
Major takeaway:
“Home prices have been remarkably resilient so far this year, considering the impact that inflation and climbing rates are having on buyers’ budgets. Recent data does show some deceleration in listing prices, and a seasonal pull back that is typical of this time of year. On the flip side, this cooling is likely one reason why fewer sellers entered the market in September,” said Danielle Hale, Chief Economist for Realtor.com®. “For homeowners deciding whether to make a move this year, remember that listing prices – while lower than a few months ago – remain higher than in prior years, so you’re still likely to find opportunities to cash-in on record-high levels of equity, particularly if you’ve owned your home for a longer period of time. And for prospective buyers grappling with affordability, you may have more bargaining power than you realize, particularly in areas where time on market is rising.”
For the full report, visit www.realtor.com/research/september-2022-data.
