Net New Listing Volume Continues to Lag, Yielding Little Relief to the Inventory Shortage
Prices Have Continued to Rapidly Increase Month-Over-Month since the end of February
Single-Family Rental Market Maintains Strong Growth Amid Purchasing Market Turmoil
HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, today released its latest Market Pulse report, covering 22 listing-derived metrics and comparing data between May 2022 and May 2023. The Market Pulse is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform.
In May 2023, housing market activity continued to lag as rate hikes from the Federal Reserve persisted. While we continued to see significant decreases in listing volumes, year-over-year removals of listings have substantially decreased compared to April 2023. Price cuts are up 18.6% compared to the same time last year, but are down approximately 49.8% from their recent peaks occurring in September and October 2022.
Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented:
“The housing market is facing significant challenges as the threat of additional rate hikes combined with a potential debt ceiling default drives the decline in net new listings and contract volume. This trend has resulted in inventory shortages, which have resulted in prices rapidly increasing since the end of February. Despite the market slowdown, we are seeing strong buyer demand and a high sale-to-list price ratio, indicating we are in a seller's market. We expect market activity to remain repressed heading into June as investors and would-be buyers remain hesitant in the face of the various economic headwinds.”
Key Takeaways:
- For the month of May 2023, 246,916 net new listings were placed on the market, and 299,088 properties went under contract. This represents a decrease of 40.6% and 18.1%, respectively, versus May 2022.
- The decrease in net new listings was driven by a 34.7% decrease in new listing volume as well as a 22.6% increase in removals compared to May 2022.
- Median days on market stood at 32, up 28.0% from the prior year at 25 days on market.
- The sale-to-list-price ratio stands at 99.3%, which is above the lowest value observed in January 2023 and trending further upward.
- Price cuts are up 18.6% year-over-year but are down nearly 49.8% from their recent peaks occurring in September and October 2022.
- Total single-family rental inventory is up 66.7% from the same period in 2022, and up 141.3% from 2021.
About HouseCanary
Founded in 2013, national real estate brokerage HouseCanary empowers consumers, financial institutions, investors, and mortgage lenders, with industry-leading services including valuations, forecasts, and transactions. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.
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Longacre Square Partners
Casie Connolly / Ashley Areopagita
housecanary@longacresquare.com
