More homes on the market means good news for buyers, at least for those who can afford mortgage payments at a higher rate than they were at this time last year.
Active listings include all homes on the market, regardless of when they were listed for sale. New listings, which just include those first coming on the market during the month, declined 2.8 percent nationwide in July 2022, compared with July 2021, an indication that economic uncertainty may be keeping sellers out of the market. But in 13 markets, new listings rose, compared with July 2021. For example, new listings were up 37.6 percent in Las Vegas, compared with July 2021, up 37.1 percent in Nashville and up 28.6 percent in Oklahoma City. In Washington, D.C., new listings were down 21.5 percent, compared with July 2021.
Despite some indications that buyer demand is slowing, such as fewer mortgage applications and fewer sales, homes continue to sell for high prices and at a faster pace than before the pandemic. In July, homes sold in a median of 35 days, which is two days faster than in July 2021 and 25 days faster than in July 2019.
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End of carouselEcon 101
Why is rent so high?
- As the pandemic interrupted normal work, people spent more time at home. Many people moved from the city to the suburbs for more space.
- Quickly, there were far more people looking to buy new homes than there were homes available.
Read our rent guide for more.
Econ 101 is supported by Morgan Stanley.
- Home prices then soared nationwide, and many people lost out in bidding wars. Prospective homeowners became prospective renters, pushing prices even higher.
- Global supply chain snafus made materials difficult to obtain and construction workers difficult to hire. It took months longer than usual to get new rental units online.
Read our rent guide for more.
Econ 101 is supported by Morgan Stanley.
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The national median listing price for a home remained high at $449,000 in July, although that is $1,000 less than it was in June, when it was a record high $450,000. The national median listing price in July is 16.6 percent higher than the median listing price in July 2021 and 39.5 percent more than the median listing price in July 2019. Typical monthly mortgage payments are 1.5 times higher than they were in July 2021.
Higher prices, especially when borrowers face higher mortgage rates than in the past, makes buying a home a challenge in most markets. That’s one reason Realtor.com gives for the fact that more than half (53 percent) of buyers are looking for a home outside of the market where they live. That’s the highest percentage on record and up from 48 percent in the first quarter of 2022.
Eight of the top 10 markets attracting the most out-of-town buyers have a lower median listing price than the national average. For example, El Paso, where 62.1 percent of listing views were from out of town, had a median listing price of $281,642 in July.
Other towns with a high percentage of buyers looking for property from out of town include Warner Robins, Ga., where 82.2 percent are from out of town; Alexandria, La. (69.1 percent); Midland, Tex., (65.2 percent); Yakima, Wash. (63.6 percent); and Burlington, Vt. (63.5 percent).