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SPRING HOUSING MARKET SHOWING EARLY PROMISE
Dated: May 5 2023
SPRING HOUSING MARKET SHOWING EARLY PROMISE
Easing prices and less competition continue a rebalancing of the housing market, according to RE/MAX.
Spring has sprung! Data from the latest RE/MAX National Housing Report shows March 2023 home sales increased compared to February 2023, a typical trend at this time of year. While inventory across the U.S. remains limited, March 2023 saw an increase in inventory as well. The Median Sales Price went down 2.0% from the previous year, with homes averaging $396,000 across the report’s 52 measured metro areas.
While buyers are finally getting some reprieve on price compared to this time last year, home prices ticked up 3.4% month over month. The housing market continues to show a rebalancing between buyers and sellers. The average close-to-list price ratio in March 2023 was 99%, meaning that on average, homes sold for 1% less than the asking price. A year ago, it was 102%.
According to RE/MAX President and CEO Nick Bailey, there are several positive aspects of the current housing market that makes it an attractive time for both buyers and sellers.
“Compared to last year, there's a lot to like about this housing market, including lower prices and less competition for available listings. Although it would be good to see more new listings coming onto the market, the current conditions offer potential for home buyers and sellers alike,” says Bailey. “For those interested in selling, demand for properties remains high and for buyers entering the market, this spring can be a prime time to make a move.”
The latest data from RE/MAX shows that homes sold in March spent an average of 40 days on the market, a decrease of six days from the previous month. This average is two weeks longer than it was a year ago.
RE/MAX agent Keely McNeal of RE/MAX Legends in Buford, Georgia, says buyers are looking beyond interest rates and seeing prices that intrigue them, and accordingly, suggests working with an expert to ensure sellers get their pricing right.
“We’re seeing an influx of buyers entering the market, ready to take advantage. Consumers on both sides of the transaction should work with a local market expert who understands how pricing can be a key differentiator,” she says.
Scott Comey, Broker/Owner of RE/MAX Elite in Washington has noticed market changes based on outside economic factors.
“The number of transactions being down [in my market] is a direct reflection of both buyers and sellers sitting on the sidelines due to rates and other economic factors like the recent bank failures,” Comey shares.
He is also noticing some retained advantages for sellers in his market.
“For our brokerage in Snohomish County, we have seen the average sale price have a $51k increase since January 1 of this year,” Comey says. “This means that values are coming up month-over-month. We are even seeing homes under the median home price get multiple offers again.”
Here’s the need-to-know data from the U.S. metro areas surveyed for the March 2023 RE/MAX National Housing Report:
Demand for Homes Remains Strong
Of the 52 metro areas surveyed in March 2023, the overall number of home sales is up 37.7% compared to February 2023, and down 21.8% compared to March 2022. The markets with the biggest decrease in year-over-year sales percentage were San Francisco, CA at -37.8%, Portland, OR at -36.0%, and Los Angeles, CA at -31.5%. No metro area had a year-over-year sales percentage increase in March.
Home Prices Continue to Stabilize
In March 2023, the median of all 52 metro area sales prices was $396,000, up 3.4% compared to February 2023, and down 2.0% from March 2022. The markets with the biggest year-over-year decrease in median sales price were Seattle, WA at -11.4% and San Francisco, CA at -11.3%. Two metro areas increased year-over-year by double-digit percentages, Omaha, NE at +11.3% and Wichita, KS at +10.0%.
Low Housing Supply Remains a Challenge
The number of homes for sale in March 2023 was down 2.8% from February 2023 and up 56.4% from March 2022. Based on the rate of home sales in March 2023, the months’ supply of inventory was 1.4, down from 1.7 compared to February 2023, and up compared to 0.8 in March 2022. In March 2023, the markets with the lowest months’ supply of inventory were Seattle, WA at 0.5, followed by a tie between Albuquerque, NM and Charlotte, NC at 0.6. The markets with the highest months’ supply of inventory were a tie between Boston, MA and Bozeman, MT at 2.8, followed by Coeur d’Alene, ID at 2.6.
Ready to make a move? Contact a local RE/MAX agent today.
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