HouseCanary's Latest Report Shows Continued Housing Market Slowdown Amid Rapidly Increasing Prices
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 April 2022 and April 2023. The Market Pulse is an ongoing review of proprietary data and insights from HouseCanary's nationwide platform.
In the first month of Q2 2023, the housing market had to endure the effects of rate hikes from March's Federal Reserve meeting, resulting in continued reduced market activity. Although the most recent rate hikes were lower than in previous months, the housing market still exhibited year-over-year decreases in contract and net new listing volume. Furthermore, net new listing volume continues to lag contract volume, yielding little relief to the inventory shortage. Meanwhile, listed and closed prices have rapidly reversed course from declining throughout H2 2022 and into early 2023 with prices now increasing rapidly month-over-month since the end of February.
Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented:
"As we enter May 2023, the real estate market continues to experience uncertainty, with the purchasing market slowdown being one of the key trends observed for over a year now, as April 2023 marked the 12th consecutive month of year-over-year declines in net new listings and contract volume. This trend has led to an increase in rental demand, as prospective buyers remain cautious amid the market conditions. However, buyers and sellers alike are looking towards the upcoming Federal Reserve meeting with hope, as some experts anticipate the reversal of rate hikes, which could potentially lead to a resurgence in activity."
Key Takeaways:
- For the month of April 2023, 222,076 net new listings were placed on the market, and 283,034 properties went under contract. This represents a decrease of 39.8% and 17.8%, respectively, versus April 2022.
- The decrease in net new listings was driven by a 32.4% decrease in new listing volume as well as a 44.8% increase in removals compared to April 2022.
- Median days on market stood at 33, up 37.5% from the prior year at 24 days on market. Days on the market decreased by 10.8% on a month-over-month basis.
- The sale-to-list-price ratio stands at 98.9%, which is above the lowest value observed in January 2023 and trending further upward.
- Price cuts are up 82.8% year-over-year but are down nearly 55.5% from their recent peaks occurring in September and October 2022.
- Total single-family rental inventory is up 64.6% from the same period in 2022, and up 128.7% 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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