Realtor.com® March Housing Report: Housing Market Takes a Step in a Buyer-Friendly Direction
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The recent uptick in housing inventory and price reductions indicates a shift towards a buyer's market, a notable change from the seller's market that has prevailed in recent years. This increase in inventory, up 23.5% from the previous year, suggests that sellers are more willing to enter the market, potentially due to concerns over future price stability or a desire to lock in gains before any anticipated market softening.
While the overall increase in inventory is a positive sign for buyers, the fact that inventory remains 37.9% below pre-pandemic levels shows that the market has not fully recovered. This could lead to continued competition for homes in certain price ranges or locations, particularly as the 'Best Time to Sell' approaches, which could temporarily boost seller confidence and prices.
The regional variations in price reductions, with the South showing the largest increase, reflect differing local economic conditions and housing demand. This could influence regional migration patterns, as buyers seek out areas with more favorable pricing.
The marginal increase in the national median list price year-over-year, coupled with significant price reductions in key metro areas, suggests a cooling housing market. This may have implications for the broader economy, as housing is a significant component of consumer spending and confidence. Investors in home construction companies, real estate services and mortgage lenders should monitor these trends, as they could signal a decrease in demand for new homes and related services.
Furthermore, the current mortgage rates hovering between 6.6% and 7% are likely to affect home affordability and could dampen buyer enthusiasm, potentially leading to a slowdown in the housing market's growth. This could impact the financial sector, particularly if there is a knock-on effect on mortgage-backed securities and the broader credit markets.
The data on median days on market, which is slightly lower than last year, suggests that despite the increase in inventory and price reductions, there is still a healthy demand for housing. This could be indicative of underlying economic strength and a resilient job market, allowing people to continue purchasing homes even at higher mortgage rates.
However, the disparities in market dynamics across different metro areas need to be considered. For instance, areas with significant inventory increases, like Tampa and Orlando, could see a more pronounced impact on local economies, potentially affecting employment in real estate and construction sectors.
Long-term, if this trend towards more balanced market conditions continues, it could lead to more sustainable growth in the housing sector, which is beneficial for economic stability. Nevertheless, stakeholders should be cautious, as rapid shifts in housing market dynamics can have unpredictable effects on consumer spending and investor sentiment.
March data shows the largest share of price reductions since 2019 with 34 out of the 50 largest metros showing an uptick in drops
"Sellers are starting to warm up to the current environment, wading into the market in increasing numbers despite market mortgage rates that are likely above their existing rate, if they have a mortgage. As a result, data shows surprisingly competitive pricing trends among sellers, especially in the lead up to this year's Best Time to Sell, which Realtor.com® reported will be between April 14th - 20th," said Danielle Hale, Chief Economist of Realtor.com®. "As seller optimism swells, we may see even further inventory gains later in the season that will likely create a more balanced environment for hopeful homebuyers."
List of the 10 Metro Areas with Largest Share of Price Reductions of Total Inventory
Tampa -St. Petersburg-Clearwater , Fla. –27.6% Phoenix -Mesa -Chandler, Ariz. –23.0% Austin -Round Rock -Georgetown, Texas –22.3% Jacksonville, Fla. –22.1% San Antonio -New Braunfels, Texas –21.8% Orlando -Kissimmee -Sanford, Fla. –20.2% Portland -Vancouver -Hillsboro, Ore. -Wash. –20.1% Miami -Fort Lauderdale -Pompano Beach, Fla. –19.7% Dallas-Fort Worth -Arlington, Texas –19.5% Memphis, Tenn. -Miss.-Ark. –19.3%
Across the country, price reductions were up compared with last year. In the South it was up 3.5 percentage points, +1.0 percentage points in the Midwest, +0.5 percentage points in the Northeast, and +0.2 percentage points in the West.
Sellers Turned Out as Home Listing Activity Continued to Climb
Between January 2024 and March 2024, the inventory of homes actively for sale was at its highest level since 2020. While inventory looks to be on the upswing, it's important to note that the market is still down
Median List Price is in Flux; Up from Last Month, But Not Much has Changed from Last Year
The national median list price increased from
March 2024 Housing Metrics – National
Metric | Change over Mar 2023 | Change over Mar 2019 |
Median listing price | + | +38.9 % |
Active listings | +32.5 % | -37.7 % |
New listings | +16.5 % | -17.2 % |
Median days on market | -2 days (to 50 days) | -15 days |
Share of active listings with price reductions | +2.2 percentage points (to | +0.0 percentage points |
Additional details and full analysis of the market inventory levels, price reductions, fluctuations and stabilization can be found in the Realtor.com® March Monthly Housing Report.
March 2024 Housing Overview of the 50 Largest Metros, Ranked by Largest Price Reduction
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 (Percentage Points) |
2.2 % | 3.0 % | 58.3 % | 29.3 % | 51 | 0 | 27.6 % | 8.3 pp | ||
7.1 % | 4.1 % | 16.9 % | 9.7 % | 49 | -1 | 23.0 % | -2.0 pp | ||
0.0 % | 2.0 % | 15.8 % | 19.0 % | 40 | -11 | 22.3 % | -4.5 pp | ||
3.9 % | 4.6 % | 38.6 % | 22.1 % | 47 | -5 | 22.1 % | 4.6 pp | ||
-1.9 % | -1.4 % | 36.8 % | 16.9 % | 57 | 2.5 | 21.8 % | 3.1 pp | ||
-0.4 % | 2.0 % | 53.3 % | 14.6 % | 54 | 1 | 20.2 % | 6.2 pp | ||
-1.6 % | 2.2 % | 26.7 % | 7.7 % | 45 | 1.5 | 20.1 % | 9.7 pp | ||
-8.4 % | -3.6 % | 48.2 % | 16.6 % | 58 | -2 | 19.7 % | 5.5 pp | ||
-0.5 % | 1.4 % | 38.0 % | 16.7 % | 40 | -5.5 | 19.5 % | 3.5 pp | ||
2.5 % | 2.3 % | 38.2 % | 16.1 % | 51 | -1.5 | 19.3 % | 4.8 pp | ||
6.0 % | 6.9 % | 9.3 % | 3.6 % | 32 | -3 | 18.8 % | 0.6 pp | ||
-0.3 % | -0.5 % | 27.7 % | -4.8 % | 67 | 9 | 17.8 % | -0.6 pp | ||
-8.3 % | -1.5 % | 22.9 % | 17.4 % | 45 | -5.5 | 17.2 % | 5.2 pp | ||
-5.4 % | 2.6 % | 48.1 % | 19.4 % | 30 | 3.25 | 17.2 % | 4.1 pp | ||
0.7 % | 1.3 % | 23.5 % | 20.1 % | 43 | -3.5 | 16.7 % | 2.4 pp | ||
2.1 % | 5.8 % | 19.9 % | 1.2 % | 38 | -3.5 | 16.5 % | 4.1 pp | ||
5.5 % | 5.8 % | 23.5 % | 8.3 % | 42 | -4.25 | 16.2 % | 2.6 pp | ||
0.0 % | 4.0 % | 22.1 % | 11.9 % | 41 | -5 | 15.7 % | 2.6 pp | ||
0.8 % | 6.8 % | 20.2 % | 9.7 % | 29 | -0.5 | 14.2 % | 2.0 pp | ||
4.4 % | 5.8 % | -33.1 % | 8.4 % | 38 | -15 | 13.7 % | -6.4 pp | ||
2.3 % | 3.6 % | 14.5 % | 5.9 % | 40 | 4 | 13.6 % | 0.6 pp | ||
4.8 % | 6.4 % | 14.3 % | 2.2 % | 34 | -4 | 13.2 % | 2.3 pp | ||
4.0 % | 5.3 % | 27.6 % | 12.6 % | 50 | -1 | 13.1 % | -0.1 pp | ||
7.1 % | 7.1 % | 7.5 % | 15.2 % | 47 | -7 | 13.0 % | 0.4 pp | ||
11.6 % | 9.9 % | 10.8 % | 1.3 % | 55 | -9 | 12.9 % | 0.8 pp | ||
-3.8 % | 2.4 % | 11.6 % | 6.5 % | 36 | -7 | 11.3 % | 1.1 pp | ||
0.0 % | 5.9 % | 6.1 % | 18.1 % | 42 | -9.5 | 11.2 % | -1.5 pp | ||
-6.6 % | -4.0 % | 8.1 % | 20.7 % | 51 | -19.75 | 11.2 % | 2.9 pp | ||
-4.7 % | 6.2 % | 28.1 % | 17.0 % | 37 | -1 | 11.1 % | 3.0 pp | ||
1.3 % | 4.2 % | 16.9 % | 32.5 % | 36 | -6.5 | 11.1 % | 1.0 pp | ||
6.6 % | 7.2 % | -1.3 % | 1.6 % | 43 | -6.5 | 11.0 % | 0.0 pp | ||
8.4 % | 9.2 % | 0.4 % | 2.4 % | 42 | -1.5 | 11.0 % | 1.5 pp | ||
5.1 % | 11.1 % | 26.3 % | 25.9 % | 32 | -5 | 10.9 % | 1.2 pp | ||
4.7 % | 4.8 % | 14.2 % | 4.9 % | 39 | -7.5 | 10.3 % | 0.8 pp | ||
1.2 % | 1.7 % | 3.6 % | 4.1 % | 42 | -3.5 | 9.8 % | -2.3 pp | ||
6.9 % | 10.0 % | 0.9 % | 7.3 % | 24 | -4 | 9.7 % | 1.3 pp | ||
-1.4 % | -0.2 % | 24.3 % | 16.8 % | 34 | -4 | 9.5 % | 2.3 pp | ||
11.8 % | 8.7 % | 8.8 % | -9.4 % | 44 | 3 | 9.1 % | 1.3 pp | ||
1150000 | 15.1 % | 8.1 % | 5.4 % | 17.8 % | 42 | -3.5 | 9.0 % | -0.4 pp | |
-2.7 % | 1.4 % | 20.3 % | 19.5 % | 29 | -3 | 8.7 % | -0.8 pp | ||
0.8 % | 6.6 % | 2.2 % | 3.2 % | 31 | -3 | 8.7 % | 0.9 pp | ||
-7.6 % | -1.2 % | 13.4 % | 21.7 % | 27 | -6.5 | 8.6 % | -0.3 pp | ||
-0.3 % | 5.2 % | 9.9 % | 12.4 % | 29 | -3.5 | 7.9 % | 0.7 pp | ||
6.4 % | 7.3 % | -7.7 % | 2.0 % | 33 | -7 | 7.8 % | -1.8 pp | ||
8.8 % | 15.2 % | -4.3 % | 2.6 % | 50 | -5 | 6.8 % | -0.4 pp | ||
-2.8 % | -1.7 % | 0.1 % | 12.1 % | 35.5 | -5.75 | 6.3 % | 0.6 pp | ||
1481000 | -0.9 % | 1.1 % | 2.2 % | 21.5 % | 22 | -5 | 5.8 % | -1.6 pp | |
9.7 % | 9.6 % | 4.2 % | 3.7 % | 38 | -6.5 | 5.3 % | -0.3 pp | ||
-0.7 % | 4.7 % | 6.1 % | 6.5 % | 37 | 8 | 5.1 % | 0.6 pp | ||
8.7 % | 7.1 % | -4.0 % | 9.0 % | 22 | -2 | 4.3 % | -2.5 pp |
Methodology
The Realtor.com housing report is based on data from March 2024. Listings include the active inventory of existing single-family homes and condos/townhomes/row homes/co-ops for the given level of geography on Realtor.com; new construction is excluded unless listed via an MLS that provides listing data to Realtor.com. Realtor.com data history goes back to July 2016. 50 largest
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
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SOURCE realtor.com
