HouseCanary’s latest Market Pulse report shows that February was the tenth consecutive month of double-digit declines in net new listings on a year-over-year basis, driving down prices and contract volume, and providing little relief to the ongoing inventory shortage. The market is also experiencing significant increases in listing removals year-over-year.
Although rate hikes from the Federal Reserve picked back up in February, some observations made in the last couple of months have persisted, such as the days on market and sale-to-list-price ratio continuing to imply a balanced market but displaying signs of trending towards a buyer’s market, the company says. Notably, median days on market have decreased from 53 in January to 43 in February, representing an 18.9% decrease month-over-month.
“Although the rate hike slowdown from the Federal Reserve in January helped bolster housing market activity, these early signs of a potential rebound were halted in February,” says Jeremy Sicklick, co-founder and CEO of HouseCanary. “While higher interest rates continue to slow market activity, we believe that the market environment is still headed towards a buyer’s market and expect that more normalized supply-demand dynamics and pricing could be in play by the end of 2023.”
In February, 157,967 net new listings were placed on the market, and 247,294 properties went under contract. This represents a decrease of 43.6% and 17.0%, respectively, versus February 2022.
The decrease in net new listings was driven by a 31.7% decrease in new listing volume, as well as a 72.6% increase in removals compared to February 2022.
Median days on market stood at 43, up 48.3% from the prior year at 29 days on market. Days on the market decreased by 18.9% on a month-over-month basis.
The sale-to-list-price ratio stands at 97.1%, which is slightly above the lowest value observed in January 2023.
Moreover, price cuts were up 173.6% year over year but were down nearly 63% from their recent peaks occurring in September and October 2022.
Photo by Alexander Andrews on Unsplash