The U.S. housing market likely reached its low point during mid-April with constrained new inventory and minimal price growth. Signs of recovery emerged in late April and strengthened in May, setting the stage for continued growth over the summer, according to realtor.com®'s May Monthly Housing Trends report issued today.
The data show the national median listing price hit a new all-time high of $330,000 in May, despite rising just 1.6 percent year-over-year. This price growth was an improvement over April's 0.6 percent year-over-year growth which was the slowest pace in the past three years. Additionally, the weekly progression of data showed that price growth and new inventory trends improved.
The median list price began the month up 1.4 percent and strengthened throughout the month, increasing 3.1 percent during the last week of May. New listings were down 29.1 percent the week ending May 9, but recovered to down 22.9 percent by the week of May 30. While still well-below last year's levels, the rate of decline in newly listed properties has improved dramatically from a drop of 44.1 percent year-over-year in April to down 29.4 percent in May. Despite these positive trends, COVID-related challenges linger; homes were on the market 15 days longer than this time last year.
"May's home price data demonstrate the underlying strength of the U.S. housing market despite the challenges brought by the COVID-19 pandemic," said realtor.com® Chief Economist Danielle Hale. "The fact that home prices are at an all-time high shows that the momentum the market had prior to the pandemic has helped to keep buyer and seller expectations stable. Ongoing inventory shortages, that continue to worsen, also push home prices higher even while homes sell more slowly."
"As a sense of normalcy returns, we expect to see a shortened, but strong summer home selling season, as long as seller confidence continues to improve and more homes are listed for sale," Hale added.
Los Angeles-Long Beach-Anaheim, Calif. (+14.9 percent), Pittsburgh, Pa. (+14.0 percent); and Cincinnati, Ohio-Ky.-Ind. (+12.1 percent); posted the highest year-over-year median list price growth in May. The steepest price declines were seen in Detroit-Warren-Dearborn, Mich. (-3.4 percent); San Antonio-New Braunfels, Texas (-3.2 percent); and Seattle-Tacoma-Bellevue, Wash. (-3.1 percent).
Within the nation's 50 largest metros, inventory declined by 21.9 percent year-over-year, a greater rate than April's 16 percent decline. The metros which saw the largest declines in inventory were largely those hardest hit by COVID-19 along the East Coast, including: Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. (-38.6 percent); Providence-Warwick, R.I.-Mass. (-35.8 percent); and Baltimore-Columbia-Towson, Md. (-34.5 percent). This month, none of the largest 50 metros saw an inventory increase on a year-over-year basis and 43 out of the 50 saw greater yearly inventory declines than last month.
Among the largest metropolitan areas, homes in areas hit hardest by COVID-19 saw the greatest increase in time spent on the market, including: Buffalo-Cheektowaga-Niagara Falls, N.Y. (+34 days); Pittsburgh, Pa. (+33 days); and Detroit-Warren-Dearborn-Mich. (+32 days).
Metros With Largest Decline in New Listings | ||||||
Metro | New | Active | Median Listing | Median | Median | Median |
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. | -50.3% | -38.6% | $312,000 | 8.4% | 73 | 25 |
Buffalo-Cheektowaga-Niagara Falls, N.Y. | -43.2% | -30.0% | $232,000 | 5.5% | 70 | 34 |
Providence-Warwick, R.I.-Mass. | -41.9% | -35.8% | $400,000 | 4.6% | 63 | 18 |
New York-Newark-Jersey City, N.Y.-N.J.-Pa. | -40.7% | -21.0% | $575,000 | 0.6% | 72 | 21 |
Baltimore-Columbia-Towson, Md. | -40.3% | -34.5% | $340,000 | 0.0% | 57 | 15 |
Washington-Arlington-Alexandria, DC-Va.-Md.-W. | -39.8% | -31.5% | $510,000 | 4.2% | 44 | 12 |
Kansas City, Mo.-Kan. | -36.9% | -31.0% | $350,000 | 7.5% | 64 | 22 |
San Jose-Sunnyvale-Santa Clara, Calif. | -36.3% | -25.5% | $1,199,000 | 1.9% | 37 | 10 |
Columbus, Ohio | -35.7% | -25.9% | $325,000 | 5.7% | 50 | 14 |
Hartford-West Hartford-East Hartford, Conn. | -35.5% | -33.2% | $294,000 | 5.0% | 61 | 15 |
Portland-Vancouver-Hillsboro, Ore.-Wash. | -35.3% | -23.1% | $490,000 | 2.3% | 52 | 18 |
Rochester, N.Y. | -35.1% | -30.0% | $255,000 | 10.3% | 56 | 25 |
Cleveland-Elyria, Ohio | -34.9% | -33.3% | $216,000 | 6.7% | 67 | 14 |
Indianapolis-Carmel-Anderson, Ind. | -34.2% | -22.8% | $298,000 | 0.7% | 58 | 15 |
Vi | ||||||
| Company Name | Contact Person | Contact Number | Email Id | Website | Address |
|---|---|---|---|---|---|
| Realtor |
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