The recent six-month surge in active listings lost momentum, moderating to 59.9% year-over-year, and time on market shrank to 54 days, from January’s high of 74 days, as buyers eased back into the market in March, but higher mortgage rates could freeze them back out, according to a new report from Realtor.com.
Realtor.com’s Monthly Housing Trends Report for March found that the median listing price grew by 6.3% to $424,000, up 38.8% from 2019. Active listings were up 59.9%, but down -49.5% from 2019. New listings fell 20.1%, and 26.9% from 2019. Median days on the market rose by 18 days to 54, down 18 days from 2019. The share of active listings with price reductions grew 6.8 percentage points to 12.6%, down 2.3 percentage points from 2019, with southern metros (+10.3 percentage points) seeing the largest increase in the share of listings with price reductions.
Key highlights:
- The number of homes for sale across the 50 largest metros was up 74.4% compared to a year ago. The South saw the highest growth in active listings (+127.4%).
- Among the 50 largest metros, 47 markets saw active inventory increase compared to last March, with the most growth in Austin (+312.2%), Raleigh (+273.7%), and Nashville (+253.3%).
- Only three markets had inventory declines on a year-over-year basis, including Milwaukee (-17.2%), Hartford (-17.0%), and New York (-0.9%).
- Among the 50 largest metros, the biggest annual listing price gains continue to be in the Midwest, up 14.1%, on average from last year.
- The metros with the biggest asking price increases were Memphis (+40.3%), Milwaukee (+26.3%), and Kansas City (+17.7%); however, in these metros the mix of inventory also changed and more larger, expensive homes are for sale today.
- Nine out of the largest 50 markets saw their median list price decline. Large southern metros (+9.1 percentage points) continued to see the largest increase in the share of listings with price reductions.
- The greatest year-over-year declines in the median list price were seen in Austin (-8.4% year-over-year), Las Vegas (-6.7%), and New Orleans (-5.1%).
- Across the 50 largest metros, time on market was lower relative to the national pace, 46 days on average, and was 16 days slower than March 2022.
- Time on market increased compared to last year in all 50 metros with the greatest increases in Raleigh (+42 days), Kansas City (+37 days), and Austin (+37 days).
Major takeaway:
“Signs show that buyers are active in the spring housing market, even if they aren’t as numerous as they were during the pandemic. Amid fewer new choices on the market and still rising home prices, home shoppers have shown that they are very rate sensitive, only jumping back in the market when rates dip, and so what happens with rates this spring will likely play a strong role in determining whether the housing market bumps along or picks up speed this year,” said Danielle Hale, chief economist for Realtor.com. “With so much built up equity, home sellers are still faring well, but many are sitting on the sidelines. The usual seasonal pick-up in buyer demand appears to be underway, one of several factors that make spring the Best Time to Sell. With an uncertain market ahead, it may be even more important for potential sellers to aim for this year’s seasonal sweet spot.”
Realtor.com Executive News Editor Clare Trapasso added that, “Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country. So this spring, it’s especially important for sellers to make their homes as attractive as possible to appeal to as many buyers as possible. They should make any necessary repairs, spruce up the landscaping, and invest in staging and professional photographs. Homes that are priced too high, are in need of major repairs, or aren’t presented professionally are often sitting on the market for longer and sometimes selling for under the initial asking price.”
For the full report, including more in-depth housing metrics on the 50 largest metros,, visit https://www.realtor.com/research/march-2023-data/.
