Listing prices rose to a median of $405,000 in March, an all-time high, according to realtor.com®’s latest Monthly Housing Trends Report. However, economists say that buyers may soon see relief with expectations of more inventory coming that could help relieve some of the pricing pressures.
Housing inventory is expected to hit positive territory year over year this summer, according to realtor.com®’s report.
“Despite the $405,000 price tag, March data reveals we are starting to take some steps toward a more balanced market,” says Danielle Hale, realtor.com®’s chief economist. “Buyer demand is moderating in the face of high costs, and we’re beginning to see more homeowners take price cuts on their listings and overall inventory declines lessen in response. Assuming all these factors and new construction hold steady, we could begin to see inventory increases this summer—welcome news for buyers who have endured pandemic home shopping and can continue their journey despite higher buying costs.”
But buyers currently in the market remain eager to find a home in the hopes of locking in lower borrowing costs ahead of further mortgage rate increases. Homes are still selling fast: The typical home spent 38 days on the market in March, which is 11 days less than a year ago, according to realtor.com®.
Even with buyer demand remaining high, sellers are finding buyers do have limits to what they’ll pay. Price reductions are increasing in some markets: 25 of the largest 50 metros saw an increase in price reductions in March, compared to 18 in February. The share of homes having their price reduced in March rose slightly to 6% compared to 5.8% a year ago, realtor.com® reports. Still, price reductions remain 9 percentage points below what’s considered more normal levels for the market.
Metro Breakdown of List Prices
The following markets posted the highest year-over-year median list price growth in March:
- Miami: 37%
- Las Vegas: 35.2%
- Tampa, Fla.: 32%