The drought of new listings abated slightly in August,
despite high mortgage rates
- New listings rose 4% in August, giving buyers more new
choices.
- Appreciation eased off the gas, rising just 0.2% from July to
August after stronger earlier showings.
- Competition for homes remains stiff, but sales declined as is
typical at this time of year.
SEATTLE, Sept. 12,
2023 /PRNewswire/ -- An expected end-of-summer
slowdown in the housing market came with a pleasant surprise for
home shoppers in August. The latest market
report1 from Zillow® shows an uptick of
new listings. Although sellers are still listing fewer houses than
pre-pandemic norms, the monthly increase gave buyers a bit of
relief in the midst of a long-standing drought of
inventory.
"Those still shopping for homes late in summer were offered a
bit of relief, and not all from expected sources. Competition for
houses tends to ease up at this time of year, giving buyers more
time to decide and a better chance to negotiate on price," said
Jeff Tucker, Zillow senior
economist. "What we didn't expect — especially considering
7-plus-percent mortgage rates — was more new listings. The
inventory crunch is still far from resolved, but this was a small
step in the right direction."
Sellers listed nearly 350,000 homes for sale across the U.S. in
August, about 4% more than in July. Although the number of new
listings are more than 20% below pre-pandemic norms, the uptick
gave shoppers a few fresh choices at a time of year when the flow
of inventory is typically drying up; new listings have contracted
every August in Zillow data going back to 2018. The slight upward
bump helped to halve an annual deficit in new listings, from -26%
year over year in July to -13% in August.
Homeowners who bought or refinanced to ultra-low mortgage rates
in 2020 or 2021 have been loath to sell, which has kept new
listings at seasonal record lows (with the exception of
April 2020) for 14 straight months.
Total inventory also ticked up in August, rising 2.2% from July.
However, inventory levels are still about 42% below that of August
2019.
Heading into fall, shoppers can generally expect more modest
price growth and less competition compared to the peak seasons of
spring and early summer — and that's what Zillow data is
showing.
The typical U.S. home value climbed 0.2% from July to August — a
marked cooldown after red-hot monthly appreciation in the spring
and early summer. The nation's typical home value has reached
another all-time high at $351,423,
and stands 1.3% higher than last August.
Home values climbed month over month in 32 of the 50 largest
metro areas in August, led by Hartford, Buffalo, San
Diego, Cleveland and
Providence. Values fell from July
to August in 12 major metro areas, most notably in New Orleans, Austin, San
Antonio, Denver and
Dallas.
As is usually the case at this time of year, price cuts on
listings are becoming more and more common by the month, and buyers
are getting a bit more time to decide on a house. Listings in
August took a median of 13 days to go pending — one day longer than
in July.
Sales activity decreased as well: There were 19% fewer newly
pending listings in August than last year, compared to a roughly
15% year-over-year dip in July.
Mortgage rates are still volatile as financial markets respond
to new economic data and comments from the Federal Reserve.
Regardless of rate movements, home shoppers on Zillow can make sure
their results stay within their budget by using an affordability
calculator and searching by a range of monthly payments that
work for them.
Metropolitan
Area*
|
August
Zillow Home
Value Index
(ZHVI) (Raw)
|
ZHVI
Change,
Month
over
Month (MoM)
|
ZHVI
Change,
Year
over
Year
(YoY)
|
Median
Days to
Pending
|
New For-
Sale
Listings
Change,
MoM
|
New For-
Sale
Listings
Change,
YoY
|
Total
Inventory
Change,
YoY
|
United
States
|
$351,423
|
0.2 %
|
1.3 %
|
13
|
4.0 %
|
-12.7 %
|
-13.9 %
|
New York, NY
|
$626,255
|
0.4 %
|
2.1 %
|
26
|
-1.2 %
|
-23.0 %
|
-29.5 %
|
Los Angeles,
CA
|
$910,541
|
0.5 %
|
1.6 %
|
14
|
-3.4 %
|
-18.8 %
|
-29.6 %
|
Chicago, IL
|
$308,293
|
0.5 %
|
4.1 %
|
8
|
3.6 %
|
-10.7 %
|
-25.9 %
|
Dallas, TX
|
$373,840
|
-0.2 %
|
-2.4 %
|
18
|
-5.1 %
|
-8.2 %
|
1.5 %
|
Houston, TX
|
$306,607
|
0.0 %
|
-1.3 %
|
20
|
-6.7 %
|
-10.8 %
|
-2.2 %
|
Washington,
DC
|
$545,966
|
0.0 %
|
2.2 %
|
7
|
-7.1 %
|
-17.0 %
|
-33.2 %
|
Philadelphia,
PA
|
$349,292
|
0.6 %
|
5.5 %
|
9
|
1.1 %
|
-13.4 %
|
-22.1 %
|
Miami, FL
|
$469,757
|
0.5 %
|
5.0 %
|
21
|
11.5 %
|
-15.1 %
|
-5.5 %
|
Atlanta, GA
|
$375,569
|
0.2 %
|
0.6 %
|
16
|
1.5 %
|
-19.2 %
|
-19.3 %
|
Boston, MA
|
$664,528
|
0.6 %
|
4.5 %
|
8
|
4.7 %
|
-15.6 %
|
-28.3 %
|
Phoenix, AZ
|
$451,461
|
0.4 %
|
-6.4 %
|
20
|
14.3 %
|
-29.0 %
|
-41.2 %
|
San
Francisco, CA
|
$1,137,604
|
0.0 %
|
-4.2 %
|
14
|
0.6 %
|
-14.2 %
|
-30.5 %
|
Riverside,
CA
|
$560,707
|
0.5 %
|
-0.5 %
|
15
|
-0.5 %
|
-22.7 %
|
-29.5 %
|
Detroit, MI
|
$245,320
|
0.5 %
|
3.0 %
|
8
|
2.4 %
|
-14.1 %
|
-22.8 %
|
Seattle, WA
|
$713,666
|
0.0 %
|
-2.4 %
|
8
|
-2.3 %
|
-17.8 %
|
-35.2 %
|
Minneapolis,
MN
|
$374,292
|
-0.2 %
|
0.6 %
|
17
|
4.2 %
|
-8.6 %
|
-17.1 %
|
San Diego,
CA
|
$901,053
|
0.9 %
|
2.2 %
|
10
|
1.5 %
|
-16.2 %
|
-38.0 %
|
Tampa, FL
|
$377,531
|
0.3 %
|
-1.4 %
|
14
|
1.8 %
|
-15.6 %
|
-12.8 %
|
Denver, CO
|
$581,036
|
-0.2 %
|
-2.6 %
|
12
|
5.2 %
|
0.5 %
|
-8.4 %
|
Baltimore,
MD
|
$375,911
|
0.1 %
|
3.6 %
|
7
|
0.9 %
|
-16.2 %
|
-24.9 %
|
St. Louis,
MO
|
$244,952
|
0.1 %
|
4.6 %
|
6
|
5.0 %
|
-3.1 %
|
-7.3 %
|
Orlando, FL
|
$390,465
|
0.3 %
|
1.0 %
|
15
|
3.1 %
|
-16.5 %
|
-13.6 %
|
Charlotte,
NC
|
$373,859
|
0.4 %
|
-0.3 %
|
9
|
6.6 %
|
-24.3 %
|
-14.5 %
|
San Antonio,
TX
|
$292,361
|
-0.4 %
|
-2.6 %
|
27
|
-2.6 %
|
-17.7 %
|
9.5 %
|
Portland, OR
|
$545,102
|
-0.2 %
|
-1.6 %
|
13
|
-5.4 %
|
-18.4 %
|
-18.6 %
|
Sacramento,
CA
|
$570,026
|
0.2 %
|
-3.8 %
|
11
|
5.2 %
|
-18.8 %
|
-37.2 %
|
Pittsburgh,
PA
|
$210,006
|
0.6 %
|
2.6 %
|
9
|
8.5 %
|
-10.4 %
|
-16.3 %
|
Cincinnati,
OH
|
$275,763
|
0.2 %
|
5.0 %
|
6
|
-8.6 %
|
-28.5 %
|
-28.7 %
|
Austin, TX
|
$474,853
|
-1.0 %
|
-11.4 %
|
42
|
-3.3 %
|
-16.1 %
|
-6.2 %
|
Las Vegas,
NV
|
$407,693
|
0.6 %
|
-6.4 %
|
13
|
7.2 %
|
-36.4 %
|
-46.3 %
|
Kansas City,
MO
|
$295,364
|
0.0 %
|
4.3 %
|
6
|
-6.9 %
|
-14.4 %
|
-15.9 %
|
Columbus,
OH
|
$306,001
|
0.4 %
|
3.9 %
|
5
|
2.4 %
|
-13.8 %
|
-16.9 %
|
Indianapolis,
IN
|
$273,482
|
0.2 %
|
1.6 %
|
8
|
9.7 %
|
-13.7 %
|
-11.9 %
|
Cleveland,
OH
|
$220,483
|
0.7 %
|
4.6 %
|
6
|
2.8 %
|
-12.0 %
|
-20.0 %
|
San Jose, CA
|
$1,477,936
|
0.3 %
|
-0.4 %
|
9
|
18.6 %
|
-2.5 %
|
-34.4 %
|
Nashville,
TN
|
$434,988
|
-0.1 %
|
-2.7 %
|
17
|
-2.9 %
|
-23.9 %
|
-13.5 %
|
Virginia
Beach, VA
|
$337,884
|
0.3 %
|
5.7 %
|
19
|
-1.2 %
|
-11.2 %
|
-18.1 %
|
Providence,
RI
|
$457,388
|
0.7 %
|
5.3 %
|
9
|
16.9 %
|
-10.5 %
|
-26.3 %
|
Jacksonville,
FL
|
$356,648
|
0.2 %
|
-2.2 %
|
28
|
4.6 %
|
-17.6 %
|
-6.3 %
|
Milwaukee,
WI
|
$334,446
|
0.4 %
|
8.1 %
|
13
|
20.8 %
|
8.5 %
|
-19.3 %
|
Oklahoma
City, OK
|
$229,221
|
-0.1 %
|
3.7 %
|
11
|
6.0 %
|
-5.8 %
|
1.3 %
|
Raleigh, NC
|
$436,971
|
0.0 %
|
-2.1 %
|
9
|
11.2 %
|
-22.7 %
|
-28.8 %
|
Memphis, TN
|
$237,546
|
0.3 %
|
-0.6 %
|
25
|
4.3 %
|
-4.7 %
|
7.0 %
|
Richmond,
VA
|
$353,554
|
-0.1 %
|
4.4 %
|
6
|
2.6 %
|
-16.4 %
|
-26.2 %
|
Louisville,
KY
|
$250,278
|
0.2 %
|
3.8 %
|
7
|
1.2 %
|
-15.5 %
|
-18.7 %
|
New Orleans,
LA
|
$243,473
|
-1.4 %
|
-8.7 %
|
29
|
3.3 %
|
-16.9 %
|
11.6 %
|
Salt Lake City,
UT
|
$535,636
|
-0.1 %
|
-3.2 %
|
14
|
12.2 %
|
-18.1 %
|
-19.7 %
|
Hartford, CT
|
$343,034
|
1.3 %
|
9.9 %
|
6
|
0.4 %
|
-13.9 %
|
-25.1 %
|
Buffalo, NY
|
$254,060
|
1.0 %
|
4.1 %
|
10
|
-3.7 %
|
-16.9 %
|
-19.4 %
|
Birmingham,
AL
|
$252,509
|
-0.1 %
|
0.4 %
|
13
|
-4.0 %
|
-13.0 %
|
-6.9 %
|
*Table ordered by
market size
|
1 The Zillow Real Estate Market Report is
a monthly overview of the national and local real estate markets.
The reports are compiled by Zillow Research. For more information,
visit www.zillow.com/research.
About Zillow Group:
Zillow Group, Inc. (NASDAQ: Z and
ZG) is reimagining real estate to make home a reality for more and
more people. As the most visited real estate website in
the United States, Zillow and its
affiliates help people find and get the home they want by
connecting them with digital solutions, great partners, and easier
buying, selling, financing and renting experiences.
Zillow Group's affiliates, subsidiaries and brands include
Zillow®; Zillow Premier Agent®; Zillow Home
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East®; StreetEasy®; HotPads®; and
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All marks herein are owned by MFTB Holdco, Inc., a Zillow
affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS
#10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a
Zillow affiliate.
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