According to a new Realtor.com report, the national real estate market reached five months of supply nationwide this summer, bringing it into a “rare balance.”
A few months of supply is a general industry measure of the balance of the housing market, measuring the amount of time it takes to sell all your homes at the current pace if no new listings are added. Realtor.com defines less than four months as the seller’s market, with 4-6 months being well balanced and over six months as the buyer’s market.
As a result, since Realtor.com began tracking metrics in 2016, this has been a “summer that is kind to most buyers.”
This shift was particularly pronounced in the larger metropolitan areas in the south and west, with leverages that have grown faster in stocks to buyers. High premiums and other expenses are further weakening demand in Florida.
Of the US’s 50 largest metros, seven have crossed the buyer’s market territory with supply for more than six months, based on the latest June data. Additionally, 23 of the largest metros are well balanced, with 20 still supporting sellers, the report said.
Here are seven major markets that favor buyers ranked in June months of supply, the latest data currently available. It also includes the median June price to match the supply data.
1. Miami
Median Plane Price: $510,000 months of Supply: 9.7
2. Austin, Texas
Median Price: $524,950 Month Supply: 7.1
3. Orlando, Florida
Median Price: $429,473mths of Supply: 6.9
4. New York City
Median Plane Price: $786,500 Month Supply: 6.7
5. Jacksonville, Florida
Median Price Median: $408,995 Month Supply: 6.3
6. Tampa, Florida
Median Price: 419,000 Month Supply: 6.3
7. Riverside, California
Median Price: 599,995 Month Supply: 6.1
The market is leaning towards buyers, but still feels it’s out of reach for many people
Although home prices have fallen since the national median reached $449,400 in June 2022, buyers still face steep costs.
Median home prices remained stable at $429,990 in August compared to a year ago, but the 30-year fixed mortgage rate has fallen below 7% throughout the majority of the summer, according to Realtor.com.
And “The active list has grown for almost two years in a row, but we haven’t yet returned to where we were before the pandemic,” says Krimmel.
The housing shortage and high borrowing costs combined have locked out many buyers from the market, he says. A typical list was spent 60 days in the market in August from the previous year to the 7th. Pending home sales fell 1.3% from August last year, marking the eighth consecutive month of decline compared to the previous year.
Meanwhile, the seller is withholding it. Listings rose 57% from a year ago, using available data, when the home was pulled out of the market without selling.
“We see sellers very reluctant to lower the price and find a market that is in place,” says Krimmel.
Regional dynamics are also important. Buyer markets appear primarily in the south and west, but the northeast and the midwest continue to lean towards sellers, Realtor.com reports.
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