Daily Archives: March 1, 2024

Nationwide Inventory Levels Continue to Soar Despite Notable MSA Pullbacks, HouseCanary Report Finds

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San Francisco, CA – February 22, 2024 (BUSINESS WIRE) HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, today released its latest National Rental Report, showing that Single-Family Rental (SFR) inventory continues to expand with a 26.7% surge in Q4 2023 compared to the previous year.

As with preceding quarters, the continued inventory influx resulted in an expected Days on Market surge of 26.3% compared to Q4 2022. Given the high inventory levels, Q4 2023 witnessed a marginal increase in median SFR prices of 1.5% compared to the previous year.

Chris Stroud, Co-founder and Chief of Research at HouseCanary, commented: “Looking back at Q3, only four of HouseCanary’s tracked MSAs saw inventory decreases on a year-over-year basis. This quarter, despite inventory remaining at historically high levels, some MSAs, notably Palm Bay-Melbourne-Titusville, FL, are seeing significant pullback in average weekly inventory, indicating previous inventory expansion is catching up with the market.”

Brandon Lwowski, Senior Director of Research at HouseCanary, added: “As we have noted throughout the year, median rental prices have seemingly reached their peak. With average Days on Market increasing at a high rate and prices staying relatively stable, there is potential for pullback in the rental market. However, with the Federal Reserve’s latest decision to keep rates steady, the rental market is going to remain a popular option for many would-be home buyers.”

Following a thorough analysis of the aggregated data, HouseCanary’s report identified the following key findings about the rental market for single-family detached listings in the fourth quarter of 2023:

  • Available-for-rent inventory nationwide shoots up: In Q4 2023 available-for-rent inventory continued to soar +26.7% compared to the previous year, as a result this quarter only saw marginal year-over-year increases in median SFR prices at just 1.5%.
  • Continued inventory influx results in days on market surge: The average days on market experienced a significant surge of +26.3% year-over-year.
  • Notable MSAs Signal Potential Inventory Easing: While remaining elevated historically, MSAs including Palm Bay-Melbourne-Titusville, FL have seen significant pullback with inventory dropping -50% year-over-year.
  • Florida’s Rental Rollercoaster: Punta Gorda, FL experienced considerable average rental price drops, with this quarter’s average price dropping -25.8% versus the same period last year.

The full report with all additional findings can be viewed here.

Methodology

HouseCanary’s Q4 Rental Report compares insights from Q4 2022 and Q4 2023 to explore trends shaping the U.S. rental market for single-family detached listings, including price and supply shifts across 46 states and 204 metropolitan statistical areas (“MSAs”) with the most rental market activity. The findings in today’s report represent an aggregation and summary of all single-family detached listing records between October 2023 and December 2023.

This report is run at a quarterly cadence in order to capture the quick changes that can occur in a volatile market that has been experiencing record-level growth and prices over recent years.

While the Rental Report is a nationwide snapshot of the health of the market, detailed rental statistics are available for 204 MSAs for SFR investors looking for insights into specific markets.

About HouseCanary

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.

If you are currently working with a real estate agent, this is not meant as a solicitation of your business.

HouseCanary, Inc. is a Licensed Real Estate Brokerage in KS, NM, SC and under the Trade Name ComeHome in AL, AK, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KY, LA, MA, MD, ME, MO, MN, MS, MT, NC, ND, NE, NH, NJ, NV, NY, OH, OK, OR, PA, RI, SD, TN, TX, VA, VT, WA, WI, WV, WY.

Trade Name ComeHome Real Estate in MI and UT.

Trade Name ComeHome by HouseCanary in AR.

HouseCanary, Inc., brokerage informationTREC Info About Brokerage ServicesTREC Consumer Protection NoticeCalifornia DRE #02113022

AVM Disclosure: An AVM is an estimated sale price for a property. It is not the same as the opinion of value in an appraisal developed by a licensed appraiser under the Uniform Standards of Professional Appraisal Practice.

Contacts

Longacre Square Partners
Casie Connolly / Anna Price
housecanary@longacresquare.com

More Homes Hit the Market as Spring Approaches, But 7% Mortgage Rates Keep Buyers on the Sidelines

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New listings posted their biggest increase in two months this week, but mortgage applications and pending sales declined as rates stay stubbornly high

SEATTLE, WA – February 22, 2024 (BUSINESS WIRE) (NASDAQ: RDFN) New listings rose 10% year over year during the four weeks ending February 18, the biggest increase in two months, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Sellers are hoping to take advantage of high prices: Sale prices are up 6% year over year, the biggest increase since October 2022.

But many buyers are still sitting on the sidelines. Mortgage-purchase applications dropped 10% from a week earlier as daily average mortgage rates surpassed 7% for the first time since mid-December, and pending home sales are down 7% year over year, similar to the declines seen since mid-January. But some house hunters are jumping into the earliest stages of homebuying: Redfin’s Homebuyer Demand Index, which measures requests for tours and homebuying assistance from Redfin agents, is up from the low point it dropped to in mid-January, when harsh weather was freezing up demand.

Redfin agents report that today’s buyers are mostly interested in move-in ready homes because they don’t want to spend money on repairs and renovations in addition to high monthly payments. Agents also recommend that sellers are open to providing some sort of financial concession to buyers to help ease the pain of 7% rates.

“I tell every one of my sellers to have an open mind and put on their buyer’s hat. Nine times out of 10, buyers are asking for a concession in their initial offer right now—and usually the seller needs to accept it to seal the deal,” said Shauna Pendleton, a Redfin Premier agent in Boise, ID. “The most common concession buyers are asking for is a mortgage-rate buydown. Requests for sellers to cover the closing costs are also common. I most often see buyers ask for concessions for more affordable homes—anything under $500,000 here in Boise—but I see some concessions on expensive homes, too.”

Leading indicators

Indicators of homebuying demand and activity
 Value (if applicable)Recent changeYear-over-year changeSource
Daily average 30-year fixed mortgage rate7.14% (Feb. 21)Up from 6.92% a month earlierUp from 6.78%Mortgage News Daily
Weekly average 30-year fixed mortgage rate6.77% (week ending Feb. 15)Up from 6.64% a week earlierUp from 6.12%Freddie Mac
Mortgage-purchase applications (seasonally adjusted) Down 10% from a week earlier (as of week ending Feb. 16)Down 13%Mortgage Bankers Association
Redfin Homebuyer Demand Index (seasonally adjusted) Up about 5% from a week earlier (as of week ending Feb. 18)Down 15%Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents
Google searches for “home for sale” Down 4% from a month earlier (as of Feb. 17)Down 15%Google Trends
Touring activity Up 10% from the start of the year (as of Feb. 20)At this time last year, it was up 14% from the start of 2023ShowingTime, a home touring technology company

Key housing-market data

U.S. highlights: Four weeks ending February 18, 2024Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.
 Four weeks ending February 18, 2024Year-over-year changeNotes
Median sale price$364,7515.8%Biggest increase since Oct. 2022
Median asking price$396,0005.6% 
Median monthly mortgage payment$2,636 at a 6.77% mortgage rate7.9%Down less than $100 from all-time high set in October 2023
Pending sales74,092-6.7% 
New listings76,2169.8%Biggest increase since Dec. 2023
Active listings753,204-1.8% 
Months of supply3.9 months+0.1 pt.4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions
Share of homes off market in two weeks36.5%Up from 35% 
Median days on market50-2 days 
Share of homes sold above list price22.9%Up from 21% 
Share of homes with a price drop5.7%+1.4 pts. 
Average sale-to-list price ratio98.3%+0.5 pts. 
Metro-level highlights: Four weeks ending February 18, 2024Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.
 Metros with biggest year-over-year increasesMetros with biggest year-over-year decreasesNotes
Median sale priceSan Diego, CA (15%)Newark, NJ (14.3%)Anaheim, CA (13.5%)Philadelphia, PA (12.6%)West Palm Beach, FL (12.4%) San Antonio, TX (-4.1%)Austin, TX (-0.4%)Fort Worth, TX (-0.3%)  Declined in 3 metros
Pending salesAustin, TX (5%)San Jose, CA (1.9%)   San Antonio, TX (-31.8%)Cleveland, OH (-25.2%)Warren, MI (-23.5%)Portland, OR (-20.7%)New Brunswick, NJ (-18.4%)Increased in 2 metros
New listingsJacksonville, FL (33.5%)Dallas, TX (33%)Fort Worth, TX (26%)Fort Lauderdale, FL (25.3%)Austin, TX (22.6%) Cleveland, OH (-25.3%)Atlanta (-13.3%)Milwaukee, WI (-9.5%)Warren, MI (-6.7%)Newark, NJ (-6.3%)Declined in 11 metros

To view the full report, including charts, please visit:

Housing Market Update: More Homes Hit the Market as Spring Approaches, But 7% Mortgage Rates Keep Buyers on the Sidelines

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country’s #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we’ve saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email press@redfin.com. To view Redfin’s press center, click here.

Contacts

Contact Redfin
Redfin Journalist Services:
Kenneth Applewhaite, 206-414-8880
press@redfin.com