SANTA CLARA, Calif.,
April 1, 2021 /PRNewswire/
-- Finding a home is only getting more difficult for this
spring's home buyers who in addition to having more than 50% fewer
homes to choose from are facing the double whammy of
record-breaking prices and rising interest rates, according to the
realtor.com® Monthly Housing Trends Report
released today. And while more choices and slowing price growth may
come to those who wait, mortgage rates will likely continue to
creep up.
"In many areas of the country, there are half as many available
homes for sale than a year ago -- and in some markets that number
increases to less than one-third. For a buyer, that means if they
had 10 homes in their price range to choose from last year, they
have less than five, perhaps as few as three, available to them
today," said realtor.com® Chief Economist, Danielle Hale. "As a result, home prices have
skyrocketed, shattering previous records. We expect to see more
sellers emerge in the weeks ahead, which should give buyers more
options. Homes will likely continue to sell fast, but increasing
interest rates and monthly costs could slow the pace of price
gains, unless we see a boost in demand from equity-rich repeat
buyers."
In March, the median national home listing price grew to
$370,000, up 15.6% over last year and
a new all-time high, according to realtor.com® records,
which date back to 2012. Listing prices in the 50 largest metros
grew by an average of 12.1% year-over-year with some markets seeing
listing prices grow by nearly triple that amount. Topping the list
was Austin where listing prices
were up 39.8%, followed by Buffalo,
N.Y. (+28.3%) and Los
Angeles (+24.8%).
For a buyer putting 20% down, the monthly cost (principal and
interest) of the typical March listing financed with a fixed-rate
loan over 30 years was $1,260 as a
result of rising home prices and rising interest rates, which
averaged 3.08% in the month, according to Freddie Mac.
Comparatively, the monthly cost was $1,160 in February and $1,140 in March
2020. Put another way, a buyer hoping to keep that
$1,140 monthly payment would need to
find a home priced at roughly $335,000 -- nearly $35,000 or 10% below the typical home on the
market this March.
Inventory declines continue despite more seller
activity
Nationally, the number of homes for sale in March
decreased by 52% compared to last year, a steeper decline than
February's 48.6% drop. This amounted to 534,000 fewer homes for
sale compared to March 2020.
Austin topped the list of
inventory declines, down 72.7% from a year ago followed by
Jacksonville, Fla. (-70.7%), and
Raleigh, N.C. (-70.3%).
Although the trend of sellers putting their home on the market
improved slightly from February, 20.0% fewer homes were listed for
sale in March than a year ago. Overall, newly listed homes in the
largest 50 metros decreased by 17.9% compared to last year. Only
San Jose, Calif., (+48.1%),
San Francisco (+39.1%),
Los Angeles (19.7%), and
New York (6.9%) saw an increase in
the number of new listings in March.
In the final week of March -- which overlapped the initial
housing market activity drop after the onset of the COVID-19
pandemic -- newly listed homes increased by 6.3% on a
year-over-year basis. Despite the increase, newly listed homes
ended March down 20%. Compared to a more typical non-pandemic year,
March saw 117,000 fewer new sellers, adding to the more than
200,000 new listings deficit over the previous two months
relative to the 2017 to 2019 average for the same time period.
Homes selling a full week more quickly than last
year
Rising interest rates have yet to deter buyers, or
perhaps, they are pushing them to act quickly. Either way, the
typical home spent 54 days on the market in March, six days less
than last year. Homes are selling even faster in the 50 largest
U.S. metros, spending an average of 39 days on market.
Buffalo, N.Y., saw the greatest
decline in days on market, with homes selling in just 29 days on
average, 30 days faster than last year. Homes also are selling fast
in Riverside, Calif., and
Austin, Texas, where they are
spending 23 and 26 days on market on average,
respectively.
March Housing Overview By Market
Metro
|
Median Listing
Price
|
Median Listing
Price Y/Y
|
Active Listing
Count
Y/Y
|
New Listing
Count
Y/Y
|
Median Days
on Market
|
Median Days on
Market
Y/Y
(Days)
|
Atlanta-Sandy
Springs-
Roswell, Ga.
|
$395,000
|
19.7%
|
-60.4%
|
-29.3%
|
31
|
-18
|
Austin-Round Rock,
Texas
|
$520,000
|
39.8%
|
-72.7%
|
-20.7%
|
18
|
-26
|
Baltimore-Columbia-Towson,
Md.
|
$335,000
|
2.0%
|
-59.3%
|
-17.0%
|
30
|
-13f
|
Birmingham-Hoover,
Ala.
|
$267,000
|
2.9%
|
-47.4%
|
-16.1%
|
44
|
-13
|
Boston-Cambridge-Newton,
Mass.-N.H.
|
$695,000
|
10.3%
|
-36.7%
|
-2.8%
|
27
|
-5
|
Buffalo-Cheektowaga-Niagara
Falls, N.Y.
|
$260,000
|
28.3%
|
-46.6%
|
-12.6%
|
29
|
-30
|
Charlotte-Concord-Gastonia,
N.C.-S.C.
|
$414,000
|
18.3%
|
-62.6%
|
-39.4%
|
36
|
-8
|
Chicago-Naperville-Elgin, Ill.-
Ind.-Wis.
|
$365,000
|
11.1%
|
-48.2%
|
-23.1%
|
39
|
-4
|
Cincinnati,
Ohio-Ky.-Ind.
|
$348,000
|
16.0%
|
-51.4%
|
-26.8%
|
48
|
0
|
Cleveland-Elyria,
Ohio
|
$231,000
|
14.1%
|
-55.0%
|
-22.6%
|
48
|
-12
|
Columbus,
Ohio
|
$329,000
|
7.2%
|
-53.6%
|
-11.3%
|
29
|
-11
|
Dallas-Fort
Worth-Arlington,
Texas
|
$383,000
|
12.0%
|
-69.0%
|
-36.6%
|
34
|
-12
|
Denver-Aurora-Lakewood,
Colo.
|
$558,000
|
-0.4%
|
-48.7%
|
-9.3%
|
15
|
-11
|
Detroit-Warren-Dearborn,
Mich.
|
$286,000
|
19.2%
|
-55.9%
|
-25.2%
|
40
|
-8
|
Hartford-West
Hartford-East
Hartford, Conn.
|
$314,000
|
10.4%
|
-45.8%
|
-14.7%
|
40
|
-11
|
Houston-The
Woodlands-
Sugar Land, Texas
|
$355,000
|
13.3%
|
-52.3%
|
-24.4%
|
49
|
-2
|
Indianapolis-Carmel-Anderson,
Ind.
|
$300,000
|
7.1%
|
-57.6%
|
-32.0%
|
47
|
-8
|
Jacksonville,
Fla.
|
$354,000
|
10.4%
|
-70.7%
|
-43.7%
|
37
|
-22
|
Kansas City,
Mo.-Kan.
|
$390,000
|
14.7%
|
-57.3%
|
-19.2%
|
57
|
-7
|
Las
Vegas-Henderson-
Paradise,
Nev.
|
$370,000
|
10.4%
|
-40.9%
|
-22.0%
|
34
|
-5
|
Los Angeles-Long
Beach-
Anaheim, Calif.
|
$1,199,000
|
24.8%
|
-19.7%
|
19.7%
|
52
|
1
|
Louisville-Jefferson
County,
Ky.-Ind.
|
$277,000
|
1.8%
|
-55.7%
|
-15.3%
|
39
|
-12
|
Memphis,
Tenn.-Miss.-Ark.
|
$240,000
|
-1.4%
|
-57.2%
|
-29.9%
|
49
|
-11
|
Miami-Fort
Lauderdale-West
Palm Beach, Fla.
|
$403,000
|
-1.2%
|
-42.0%
|
-5.1%
|
80
|
-6
|
Milwaukee-Waukesha-West
Allis, Wis.
|
$340,000
|
3.8%
|
-54.2%
|
-29.2%
|
46
|
2
|
Minneapolis-St.
Paul-
Bloomington, Minn.-Wis.
|
$385,000
|
3.2%
|
-46.1%
|
-27.6%
|
29
|
-6
|
Nashville-Davidson-
Murfreesboro-Franklin, Tenn.
|
$415,000
|
9.4%
|
-64.3%
|
-39.7%
|
26
|
-9
|
New Orleans-Metairie,
La.
|
$344,000
|
19.0%
|
-47.7%
|
-37.4%
|
53
|
-8
|
New
York-Newark-Jersey City,
N.Y.-N.J.-Pa.
|
$629,000
|
10.5%
|
-16.9%
|
6.9%
|
88
|
N/A
|
Oklahoma City,
Okla.
|
$319,000
|
20.7%
|
-61.9%
|
-42.6%
|
42
|
-1
|
Orlando-Kissimmee-Sanford,
Fla.
|
$329,000
|
2.1%
|
-53.7%
|
-26.0%
|
48
|
-8
|
Philadelphia-Camden-
Wilmington, Pa.-N.J.-Del.-Md.
|
$335,000
|
11.7%
|
-45.8%
|
-6.4%
|
44
|
-5
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$477,000
|
17.8%
|
-62.4%
|
-25.5%
|
21
|
-22
|
Pittsburgh,
Pa.
|
$267,000
|
N/A
|
-52.9%
|
-11.6%
|
63
|
-15
|
Portland-Vancouver-Hillsboro,
Ore.-Wash.
|
$542,000
|
13.0%
|
-50.7%
|
-16.6%
|
26
|
-15
|
Providence-Warwick,
R.I.-
Mass.
|
$434,000
|
8.5%
|
-58.3%
|
-14.2%
|
32
|
-19
|
Raleigh,
N.C.
|
$420,000
|
12.0%
|
-70.3%
|
-39.0%
|
39
|
-12
|
Richmond,
Va.
|
$395,000
|
18.2%
|
-53.6%
|
-21.9%
|
38
|
-9
|
Riverside-San
Bernardino-
Ontario, Calif.
|
$507,000
|
19.4%
|
-64.7%
|
-7.7%
|
23
|
-28
|
Rochester,
N.Y.
|
$285,000
|
20.9%
|
-47.6%
|
-19.0%
|
36
|
-1
|
Sacramento-Roseville-Arden-
Arcade,
Calif.
|
$587,000
|
15.7%
|
-55.0%
|
-10.0%
|
16
|
-19
|
San Antonio-New
Braunfels,
Texas
|
$328,000
|
10.0%
|
-66.6%
|
-31.3%
|
43
|
-16
|
San Diego-Carlsbad,
Calif.
|
$885,000
|
17.9%
|
-26.6%
|
-8.6%
|
61
|
N/A
|
San
Francisco-Oakland-
Hayward,
Calif.
|
$1,050,000
|
9.4%
|
-12.4%
|
39.1%
|
23
|
-7
|
San
Jose-Sunnyvale-Santa
Clara, Calif.
|
$1,243,000
|
0.8%
|
-0.6%
|
48.1%
|
15
|
-9
|
Seattle-Tacoma-Bellevue,
Wash.
|
$680,000
|
10.6%
|
-42.6%
|
-7.6%
|
14
|
-16
|
St. Louis,
Mo.-Ill.
|
$270,000
|
17.4%
|
-43.9%
|
-21.9%
|
72
|
8
|
Tampa-St.
Petersburg-
Clearwater, Fla.
|
$325,000
|
15.2%
|
-69.9%
|
-35.8%
|
33
|
-20
|
Virginia
Beach-Norfolk-
Newport News, Va.-N.C.
|
$322,000
|
1.6%
|
-55.6%
|
-25.4%
|
31
|
-16
|
Washington-Arlington-
Alexandria, DC-Va.-Md.-W. Va.
|
$510,000
|
1.0%
|
-34.7%
|
-3.5%
|
26
|
-3
|
*Some data for Pittsburgh,
New York and San Diego has been excluded due to data
quality.
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Janice
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