Expected Spring Surge in Home Sales Arrives
March home sales jumped 37.7% over February, signaling the start of the peak spring and summer seasons in the report’s 52 metro areas. While inventory was down 2.8% from February’s total, March inventory was 56.4% higher year over year – due in part to the combination of pending sales and closings being down, leaving homes on the market longer than they were a year ago. The median sales price of $396,000 in March was down 2.0% year over year.
“Compared to last year, there’s a lot to like about this housing market, including lower prices and less competition for available listings. Although it would be good to see more new listings coming onto the market, the current conditions offer potential for home buyers and sellers alike,” says RE/MAX President and CEO Nick Bailey. “For those interested in selling, demand for properties remains high and for buyers entering the market, this spring can be a prime time to make a move.”
RE/MAX agent Keely McNeal of RE/MAX Legends in Buford, Georgia, says buyers are looking beyond interest rates and seeing prices that intrigue them. “We’re seeing an influx of buyers entering the market, ready to take advantage. Consumers on both sides of the transaction should work with a local market expert who understands how pricing can be a key differentiator.”
Other notable metrics:
• While down year over year, the median sales price ticked up 3.4% from February’s $383,500, which is in line with last year when home prices rose 4.7% (from $387,000 to $405,000) from February to March.
• Months’ Supply of Inventory in March was 1.4, down from 1.7 months in February but well above the 0.8 of last March.
• March’s average close-to-list price ratio was 99%, meaning that on average, homes sold for 1% less than the asking price. A year ago, it was 102%.
• Homes sold in March were on the market for an average of 40 days – six days less than February but two weeks longer than a year ago.
Highlights and local market metrics for March include:
Of the 52 metro areas surveyed in March 2023, the overall number of home sales is up 37.7% compared to February 2023, and down 21.8% compared to March 2022. The markets with the biggest decrease in year-over-year sales percentage were San Francisco, CA at -37.8%, Portland, OR at -36.0%, and Los Angeles, CA at -31.5%. No metro area had a year-over-year sales percentage increase in March.
Median Sales Price – Median of 52 metro area prices
In March 2023, the median of all 52 metro area sales prices was $396,000, up 3.4% compared to February 2023, and down 2.0% from March 2022. The markets with the biggest year-over-year decrease in median sales price were Dallas, TX at -14.1%, Seattle, WA at -11.4%, and San Francisco, CA at -11.3%. Two metro areas increased year-over-year by double-digit percentages, Omaha, NE at +11.3% and Wichita, KS at +10.0%.
Close-to-List Price Ratio – Average of 52 metro area prices
In March 2023, the average close-to-list price ratio of all 52 metro areas in the report was 99%, up from 98% in February 2023, and down from 102% in March 2022. The close-to-list price ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price. The metro areas with the lowest close-to-list price ratio were Dallas, TX at 93%, Miami, FL at 94%, and Coeur d’Alene, ID at 96%. The highest close-to-list price ratios were a three-way tie between Hartford, CT, Manchester, NH, and San Francisco, CA at 102%.
Days on Market – Average of 52 metro areas
The average days on market for homes sold in March 2023 was 40, down six days from the average in February 2023 and up 14 days from the average in March 2022. The metro areas with the lowest days on market were Baltimore, MD and Washington, DC, tied at 16. The highest days on market averages were in Fayetteville, AR at 85, San Antonio, TX at 64, and Phoenix, AZ at 58. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Months’ Supply of Inventory – Average of 52 metro areas
The number of homes for sale in March 2023 was down 2.8% from February 2023 and up 56.4% from March 2022. Based on the rate of home sales in March 2023, the months’ supply of inventory was 1.4, down from 1.7 compared to February 2023, and increased compared to 0.8 in March 2022. In March 2023, the markets with the lowest months’ supply of inventory were Seattle, WA at 0.5, followed by a tie between Albuquerque, NM and Charlotte, NC at 0.6. The markets with the highest months’ supply of inventory were a tie between Boston, MA and Bozeman, MT at 2.8, followed by Coeur d’Alene, ID at 2.6.