Active listings grew 18.7% year-on-year in June, according to Realtor.com’s Monthly Housing Trend Report, published Thursday. The increase represents the fastest annual pace ever recorded by Realtor.com. Despite the increase, the number of active listings remains 53.2% below the June 2019 level.
Active inventory grew year over year in 40 of the 50 largest U.S. metros, with Austin, Texas seeing the largest annual increase at 144.5%, followed by Phoenix at 113.2% and Raleigh, North Carolina at 111.7% .
The number of new listings grew at an annualized rate of 4.5%, with the largest annual gains in new listings in Raleigh, North Carolina (37.6%), Nashville, Tennessee (37.2%), Las Vegas (34, 8%) and Charlotte, North Carolina (30.1%).
“Our June data shows that inventory recovery accelerated, with the second consecutive month of active offering growth in nearly three years. We expect these improvements to continue, as projected in our recently updated forecast for 2022Danielle Hale, Realtor.com’s chief economist, said in a statement.
Experts attribute the jump in listings to new sellers entering the market at a faster pace than in 2017-2019, prior to the pandemic. In addition, record high asking prices and rising interest rates are driving many buyers out of the market, contributing to: pending home sales a decrease of 16.3% year-on-year.
Nationally, the median listing price hit a new all-time high of $450,000, up 16.9% from a year ago and 38.5% as of June 2019. However, earnings represent a smaller increase than last month’s annual gain of 17. .6%.
In 15 of the largest markets, listing prices rose annually faster than the national pace, with Miami (40.1%), Orlando, Florida (30.6%) and Nashville, Tennessee (30.6%) leading the way. At the other end of the spectrum, Pittsburgh (-8.6%), Rochester, New York (-5.9%), Cincinnati (-5.7) and Buffalo, New York (-2.0%), posted yearly declines in asking prices.
“While we expect more inventory to eventually cool the frenetic pace of competition, the typical buyer hasn’t seen any meaningful relief from fast-selling homes and record-high asking prices,” Hale said.
According to Hale, the increase in larger, more expensive homes as a share of new homes is one of the reasons why general asking prices continued to rise in June, despite dwindling demand. Homes with at least 1,750 square feet accounted for 54.3% of new listings, up from 52.7% a year earlier. By contrast, the share of relatively smaller homes that came on the market in June fell from 47.3% in 2021 to 45.7% this year.
“A deeper dive into June inventory gains by square footage reveals potential opportunities for buyers moving to higher levels as newly-listed homes grew in size. In other words, this first wave of supply improvements may be particularly suited to summer sellers who want to upgrade their starter homes,” Hale said.
Year over year, the share of active offers with price cuts rose 7.3 percentage points to 14.9%, with the price cut percentage posting an annual increase in all but one (Hartford, Connecticut, 0.7 percentage point lower) of the 50 subways analyzed. Overall, about one in seven homes had a price cut in June, compared to one in 13 a year earlier.
While agents and brokers through the whole country recognized the market slows, the median number of days on the market fell by four days to 32 days year over year. Month after month, however, total time in the market increased slightly, the first time the stat increased from May to June since 2019.
Despite higher list prices, homes from 3,000 to 6,000 square feet sold faster year over year (down 8.5 days) than homes from 750 to 1,750 square feet (down 5 days).
Overall, 34 of the 50 largest metro areas saw annual declines in time in the market, with Miami (22 days dip), Hartford, Connecticut (8 days dip) and Orlando, Florida (7 days dip), posting the largest annual declines . Market time was flat in six of the markets year over year and increased in 10 markets, led by Austin, Texas (up six days).