January 2023 marked the seventh consecutive month of price declines in the U.S., according to the latest RE/MAX National Housing Report.
Data from the latest RE/MAX National Housing Report continues to show that the U.S. housing market is experiencing a healthy rebalance. The January 2023 Median Sale Price of $385,000 was down 1.0% from December 2022, marking the seventh consecutive month of price declines. At the same time, New Listings, the total number of properties listed for sale during the month, surged nearly 40 percent, compared to December 2022. January’s gain in new listings was higher than any month last year.
While the number of homes for sale is increasing, the number of closed transactions has declined, which is typical at this time of year. The rebalance is creating new opportunities in real estate, and providing the potential for more negotiating power to homebuyers across the report’s 51 metros measured.
RE/MAX President and CEO Nick Bailey believes the U.S. housing market isn’t rebounding, but rather rebalancing, after an unsustainable few years of frenzy.
“Home price appreciation seems to have stabilized, and along with additional inventory and longer average days on market, that's good news for buyers,” he said. “Buyers have more choices, and more time to identify the right house and work with their agent to negotiate with the seller. All of these are positive signs, putting both buyers and sellers in a more balanced position.”
In a recent interview with Cheddar News, Bailey shared, “We had one of the most extreme seller’s markets that we’ve had ever in our history, and it included over 125 consecutive months of run-up in pricing.”
In other good news for homebuyers, the average Close-to-List Price Ratio in January was 97%, meaning that homes sold, on average, for 3% less than the asking price. There has been a gradual decline in this metric since May 2022, when sellers were getting 3% over asking price on average. Homebuyers also are having a bit more time to weigh their options on what’s likely one of the largest financial transactions of their lifetime. After all, homes sold in January were on the market for an average of 48 days – one day longer than in December and 12 days longer than one year ago.
Carissa Sargent of RE/MAX of Cherry Creek in Denver, CO agreed the rebalance has been beneficial to buyers.
“The housing market is bouncing back, and we are seeing some multiple offer scenarios again – but with better balance for buyers than we’ve seen over the past few years,” she says.
According to a recent survey from RE/MAX, homeownership remains a top priority for consumers in the U.S. Sixty-eight percent of survey respondents said they plan to buy a house or condo in the next few years and 53% said they have expedited their homebuying plans as a result of current market conditions.
Jeffrey Decatur of RE/MAX Capital in Albany, NY noted he’s seeing buyers shopping in full force.
“Buyers have come to terms with the rates and have jumped back in with both feet,” he says. “They realize that although rates may be higher, the prices of rent are outpacing the cost and benefits of homeownership.”
Here’s the need-to-know data from the U.S. metro areas surveyed for the January 2023 RE/MAX National Housing Report:
Home Sales Continue to Cool
Of the 51 metro areas surveyed in January 2023, the overall number of home sales is down 26.7% compared to December 2022, and down 35.2% compared to January 2022. The markets with the biggest decrease in year-over-year sales percentage were Honolulu, HI at -49.4%, Las Vegas, NV at -48.4%, and Anchorage, AK at -47.4%. No metro area had a year-over-year sales percentage increase in January.
Home Prices May Have Peaked
In January 2023, the median of all 51 metro area sales prices was $385,000, down 1.0% compared to December 2022, and up 1.3% from January 2022. The markets with the biggest year-over-year decrease in median sales price were Bozeman, MT at -6.6%, Honolulu, HI at -6.3%, and San Francisco, CA at -5.6%. Two metro areas increased year-over-year by double-digit percentages, Milwaukee, WI at +13.7% and Indianapolis, IN at +11.3%.
The Number of New Listings is Soaring
While New Listings were down 5.1% year over year, January 2023 saw a jump in new listings of 39.8% from December 2022. Leading the year-over-year new listings percentage increase were Dover, DE at +45.9%, Nashville, TN at +45.2%, and Philadelphia, PA at +45.0%. The markets with the biggest decrease in year-over-year new listings percentage were San Francisco, CA at -28.0%, Indianapolis, IN at -25.0%, and San Diego, CA at -23.9%.
Ready to make a move? Contact me today!
Written by: MELANIE CLARK