April Sales Decline of 7.6% In Contrast with Seasonal Ramp-Up
The seasonal ramp-up to peak summer homebuying did not occur in April as closings dropped 7.6% from March across the report’s 49 metro areas. That came as the Median Sales Price rose 2.3% to $409,000 month-over-month and inventory inched up 1.8% over the prior month.
The number of home sales typically increases every month from February to June. But April posted a decline despite a month-over-month increase in new listings of 5.6%. Year-over-year, April sales were down 29.5% while new listings were 22.1% lower.
“The data tells a story, but it’s just one side of the story,” says RE/MAX, LLC President and CEO Nick Bailey. “Sales may be down across the U.S. as move-up buyers, who like their current mortgage rate, choose to stay in their homes. But first-time homebuyers are active and those entering the market have an edge as sellers are negotiating more and giving buyers a chance.”
The Milwaukee metro’s low inventory levels are pushing home prices up and causing negotiations of another sort says John Gscheidmeier, Broker/Owner of RE/MAX Service First in Waukesha, Wisconsin. “Sellers are experiencing multiple offers again, with buyers waiving inspections and adding an appraisal gap coverage. This gives the seller some assurance that the buyer will help cover the ‘gap’ if the home doesn’t appraise at the purchase value, which is giving some sellers confidence to enter the market.”
Other notable metrics:
• The median sales price has increased 6.2% since January after dropping 9.6% the previous seven months.
• Months’ Supply of Inventory in April was 1.3, unchanged from March but above the 1.0 a year ago.
• April’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 103%.
• Homes sold in April were on the market for an average of 33 days – six days less than March but 10 days longer than a year ago.
Highlights and local market metrics for April include:
Of the 49 metro areas surveyed in April 2023, the number of newly listed homes is up 5.6% compared to March 2023, and down 22.1% compared to April 2022. The markets with the biggest decrease in year-over-year new listings percentage were Seattle, WA at -39.2%, Phoenix, AZ at -36.2%, and San Francisco, CA at -35.5%. Leading the year-over-year new listings percentage increase were Nashville, TN at +3.6%, Trenton, NJ at +3.1%, and Philadelphia, PA at +1.1%.
Of the 49 metro areas surveyed in April 2023, the overall number of home sales is down 7.6% compared to March 2023, and down 29.5% compared to April 2022. The markets with the biggest decrease in year-over-year sales percentage were San Francisco, CA at -42.3%, Portland, OR at -40.0%, and Seattle, WA at -39.3%. No metro areas had a year-over-year sales percentage increase in April.
Median Sales Price
In April 2023, the median of all 49 metro area sales prices was $409,000, up 2.3% compared to March 2023, and down 3.1% from April 2022. The markets with the biggest year-over-year decrease in median sales price were San Francisco, CA at -13.5%, Coeur d’Alene, ID at -12.8%, and Seattle, WA at -10.9%. The markets with the biggest year-over-year increase in median sales price were Cincinnati, OH at +8.4%, Milwaukee, WI at +8.1%, and St. Louis, MO at +7.7%.
Close-to-List Price Ratio
In April 2023, the average close-to-list price ratio of all 49 metro areas in the report was 99%, flat compared to March 2023, and down from 103% compared to April 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 Miami, FL at 95%, followed by a three-way tie between Coeur d’Alene, ID, New Orleans, LA, and Phoenix, AZ at 97%. The highest close-to-list price ratios were a tie between Hartford, CT and Manchester, NH at 103%.
Days on Market
Of the 49 metro areas surveyed, the average days on market for homes sold in April 2023 was 33, down six days from the average in March 2023, and up 10 days from the average in April 2022. The metro areas with the lowest days on market were Washington, DC at 12, Baltimore, MD at 13, and Manchester, NH at 14. The highest days on market averages were in Fayetteville, AR at 75, Miami, FL at 53, followed by a tie between Des Moines, IA and Phoenix, AZ at 52. 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
Of the 49 metro areas surveyed, the number of homes for sale in April 2023 was up 1.8% from March 2023 and up 24.3% from April 2022. Based on the rate of home sales in April 2023, the months’ supply of inventory was 1.3, flat compared to March 2023, and increased compared to 1.0 in April 2022. In April 2023, the markets with the lowest months’ supply of inventory were a three-way tie between Charlotte, NC, Manchester, NH, and Seattle, WA at 0.6. The markets with the highest months’ supply of inventory were New Orleans, LA at 2.6, followed by a tie between Coeur d’Alene, ID and Miami, FL at 2.5.