The median U.S. home-sale price declined 0.6% year over year in February, marking the first annual drop since 2012–but high rates mean homes aren’t more affordable. The milestone comes as daily average mortgage rates hit 7.1%, dampening homebuying demand. U.S. home-sale prices have fallen from a year earlier for the first time in more than a decade.
In January 2023, there were 1,292,291 homes for sale in the United States, up 18.7% year over year. The number of newly listed homes was 369,158 and down 18.7% year over year. The median days on the market was 51 days, up 25 year over year.The average months of supply is 3 months, up 2 year over year.
Number of homes for sale:
Jan 2023- 1,292,291
Jan 2022 - 1.1m
Jan 2021 - 1.3m
Jan 2020 - 1.8m
3 months supply of homes available for sale which compares to pre pandemic levels.
Number of homes sold:
Jan 2023- 274,379
Jan 2022 - 412k
Jan 2021 - 432k
Jan 2020 - 377k
Newly listed homes:
Jan 2023- 369,158
Jan 2022- 454k
Jan 2021 - 494k
Jan 2020 - 527k
Homes sold above list price:
Jan 2023 - 21.2%
Jan 2022 - 42.6%
Jan 2021 - 33.2%
Jan 2020 - 18.9%
Homes with price drops:
Jan 2023 - 17.3%
Jan 2022 - 7%
Jan 2021 - 8.4.%
Jan 2020 - 12.4%
Housing starts:
Jan 2023 - 1309
Jan 2022 - 1666
Jan 2021 - 1602
Jan 2020 - 1569
According to Redfin, US rents has been levelling off. Since Jan 2020, rents have increased by 22.5% and yet home prices have increased by 32% measured using median prices from Jan 2020-Jan 2023. There is still a large discrepancy which leads me to believe home prices have further downward pressure. From May 2022 - Jan 2023, median home prices have fallen by 11.64% and 30 year fixed mortgages are on the rise. The economy cannot sustain high interest rates for long periods of time which has me to believe there is more pain ahead.