Housing Market Activity Remains Low as the Federal Reserve Slows Down Rate Hikes, New HouseCanary Data Shows
Net New Listings Placed on The Market Experienced a 43.9% Decrease Year-Over-Year Despite the Slowing Rate Hikes from the Federal Reserve
Price Has Flatlined Due to Low Market Activity, Indicated by the Median Price Remaining Unchanged Month-Over-Month
Tight Supply Points to a Balanced Market Environment, But Other Market Indicators Such as Days-On-Market and Sale-to-List-Price Ratio Suggest a Buyer’s Market is Imminent
SAN FRANCISCO, February 06, 2023--(BUSINESS WIRE)--HouseCanary, Inc. ("HouseCanary"), a national brokerage known for its real estate valuation accuracy, today released its latest Market Pulse report, covering 22 listing-derived metrics and comparing data between January 2022 and January 2023. The Market Pulse is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform.
Since H1 2022, tight supply and low market activity have been some of the most prominent trends in the housing market. As 2022 concluded, we observed that the market may have been leaning in buyers’ favors. Since then, the median price of single-family rentals has remained unchanged, and metrics such as days-on-market and sale-to-list-price ratio have reinforced the idea that the market is inching closer to once again favoring buyers.
Although market activity is significantly lower than in January 2022, the end of the holiday period has brought an increase in listings placed on the market. Additionally, a market shift is imminent as the most recent statement from the Federal Reserve indicated an increase of 25 basis points, the lowest rate hike since the meeting in March 2022.
Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented:
"As we predicted in December, the beginning of 2023 is proving to show slow market activity, as both net new listings and contract volumes are sitting at multi-year lows. For the ninth consecutive month, we have experienced year-over-year net new listing and contract volume declines in the double digits, consequently driving prices downwards yet again. Although the housing market has seen better days, there is hope that a shift will occur with the rate hike slowdown from the Federal Reserve, which bodes well for buyers."
For the month of January 2023, 118,901 net new listings were placed on the market, and 193,417 properties went under contract. This represents a decrease of 43.9% and 19.3%, respectively, versus January 2022.
The decrease in net new listings was driven by a 26.4% decrease in new listing volume as well as an 85.3% increase in removals compared to January 2022.
Median days on market stood at 53, up 39.5% from the prior year at 38 days on market. Days on the market has remained unchanged month-over-month.
The sale-to-list-price ratio stands at 96.8, the lowest seen since Q1 2019 and expected to continue downwards.
Price cuts are up 187.6% year-over-year but are down nearly 55% from their recent peaks occurring in September and October 2022.
Total single-family rental inventory is up 77.3% from the same period in 2022, and up 89.9% from 2021.
Founded in 2013, national real estate brokerage HouseCanary empowers consumers, financial institutions, investors, and mortgage lenders, with industry-leading services including valuations, forecasts, and transactions. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.
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