Realtor.com Weekly Housing Market Update – Week Ending March 10th

The Realtor.com® economics team weekly video update gives you the relevant economic and real estate information you need to know to navigate the housing market as a homebuyer, home seller, or industry professional.

In this weeks update, from the realtor.com YouTube channel, Chief Economist Danielle Hale discusses the latest labor market readings from jobless claims, the job openings and labor turnover report, and the employment situation summary.

Residential Real Estate Market Size Is Set To Grow At A CAGR Of 5.07% By 2027

New York, NY – Feb. 22, 2023 (PRNewswire) The global residential real estate market is estimated to increase by USD 514.41 billion between 2022 and 2027. The market’s growth momentum will accelerate at a CAGR of 5.07%. The report also includes historic market data from 2017 to 2021. In 2017, the residential real estate market was valued at USD 1,657.07 billion. The report provides a comprehensive analysis of growth opportunities at regional levels, new product launches, the latest trends, and the post-pandemic recovery of the global market. For more insights on the historic market data from 2017 to 2021 – Request a sample report.

Technavio

The global residential real estate market is fragmented, with the presence of several global as well as regional vendors. A few prominent vendors that offer residential real estate in the market are Al Habtoor Group LLC, Brigade Enterprises, Christies International Real Estate, Collabra Technology Inc., D. R. Hortons Inc., DLF Ltd., Engel and Volkers GmbH, Godrej and Boyce Manufacturing Co. Ltd., IJM Corp. Berhad, L and T Realty Ltd., Lennar Corp., OBEROI REALTY Ltd., Pultegroup Inc., Puravankara Ltd., Raubex Group Ltd., Savills Property Services (India) Pvt. Ltd., SOBHA Ltd., Sotheby International Realty Affiliates LLC, Sun Hung kai Properties Ltd., and Tata Sons Pvt. Ltd. and others.

Technavio has announced its latest market research report titled Global Residential Real Estate Market 2023-2027
Technavio has announced its latest market research report titled Global Residential Real Estate Market 2023-2027

Residential real estate market – Vendor Analysis
Vendor Landscape –

Vendors compete based on several factors, such as quality, price, service, brand image, distribution, and marketing. Increasing vendor competition may lead to vendors reducing their product prices, which could negatively affect their profit margins and market growth during the forecast period.

Vendor Offerings –

  • Al Habtoor Group LLC: The company offers residential luxury houses such as luxury buildings, polo resort, and club houses, towers, and villages.
  • Christies International Real Estate: The company offers residential luxury houses such as beach houses, golf houses, castles and palaces, eco-friendly homes, and private islands.
  • D. R. Hortons Inc: The company offers smart homes, luxury villas, and resorts.
  • DLF Ltd.: The company offers super luxury estate, luxury estate, and premium estates in India.
  • For Details on the vendor and its offerings – Buy the report!

Residential real estate market – Segmentation Assessment
Segment Overview
Technavio has segmented the market based on the mode of booking (sales and rental/lease), and type (Apartments, condominiums, Landed houses, and villas).

  • The sales segment will account for a significant share of the market’s growth during the forecast period. With population growth and urbanization, the demand for housing is also increasing, which is the main factor driving the growth of the retail segment. In addition, real estate companies work with developers to sell the buildings and units they create. These companies generate commissions by creating all marketing materials and using salespeople to sell the inventory of finished units. These companies tend to focus on new entities. Therefore, the sales segment of the global residential real estate market is expected to grow during the forecast period, with increasing investment in the residential sector.

Geography Overview
By geography, the global residential real estate market is segmented into APAC, North America, Europe, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global residential real estate market.

  • APAC is estimated to contribute 55% to the growth of the global market during the forecast period. The major factors, which are driving the growth of the market in APAC, are rapid urbanization and the increasing spending capacity of people. Moreover, residential and commercial projects in countries such as India and China are growing at a rapid pace. Such factors are expected to drive the growth of the residential real estate market in APAC during the forecast period. 

For insights on global, regional, and country-level parameters with growth opportunities from 2017 to 2027 – Download a Sample Report

Residential real estate market – Market Dynamics
Leading Drivers – The growing housing sector across the globe is a key factor behind the growth of the market. The concept of integrated living, as homebuyers do today, is heavily invested in housing projects with modern facilities such as shopping malls, schools, hospitals, leisure clubs, office buildings, and parks with complexes. We are growing rapidly in the residential sector as we are starting to invest. In search of a more peaceful life that is self-sufficient and secure. While large housing projects like townships meet all the social, civic, and recreational needs of homebuyers and have multi-level security systems, the demand for township housing has increased significantly. I’m here. I am here. Such factors are expected to boost the growth of the global residential real estate market during the forecast period. 

Key Trends – Increasing marketing initiatives are the main trend in the global growth of the market. Several vendors create TV advertising campaigns, followed by marketing campaigns that include internet pre-rolls, major social media and blogging programs, and interactive websites. In addition, social media is an integral part of marketing strategies, and visual content is a key driver of customer retention and the development of online brand communities. Vendors also use social media channels such as Instagram to showcase existing and upcoming projects. They post a variety of creative content on their Instagram channel with a focus on engaging customers. Therefore, increasing marketing initiatives is a growth trend expected to drive market growth over the forecast period. 

Major challenges – Regulatory uncertainty poses a major challenge to the growth of the market. Changes in regulatory standards can add significant cost, time, risk, and uncertainty to the completion of development projects and introduce new challenges and operational constraints to existing properties. There is The current regulatory environment at various levels of government such as federal, state, and local governments increasingly provide the desired transparency, permanence, predictability, and stability that are essential for property owners and operators. It offers. It is insufficient. Therefore, regulatory uncertainty could become a major challenge that could impede the growth of the global residential real estate market during the forecast period. 

Drivers, trends, and challenges have an impact on market dynamics, which can impact businesses. Find more insights in a sample report!

What are the key data covered in this residential real estate market report?

  • CAGR of the market during the forecast period
  • Detailed information on factors that will drive the growth of the residential real estate market between 2023 and 2027
  • Precise estimation of the residential real estate market size and its contribution to the market in focus on the parent market
  • Accurate predictions about upcoming trends and changes in consumer behavior
  • Growth of the residential real estate market across APAC, North America, Europe, South America, and Middle East and Africa
  • A thorough analysis of the market’s competitive landscape and detailed information about vendors
  • Comprehensive analysis of factors that will challenge the growth of residential real estate market vendors

Gain instant access to 17,000+ market research reports. 

Technavio’s SUBSCRIPTION platform

Related Reports: 

The residential real estate market in Myanmar is estimated to grow at a CAGR of 3.97% between 2022 and 2027. The size of the market is forecast to increase by USD 181.3 million. This report extensively covers market segmentation by type (landed houses and villas, apartments, and condominiums), and mode of booking (sales and rental/lease).

The Europe commercial real estate market is estimated to grow at a CAGR of 5.55% between 2022 and 2027. The size of the market is forecast to increase by USD 80.59 billion. This report extensively covers market segmentation by end-user (offices, retail, leisure, and others) and type (rental, lease, and sales).

Browse for Technavio’s consumer staples market reports

About Us
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contact
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

SOURCE Technavio

RE/MAX National Housing Report for January 2023

Home Prices Almost Back Where They Were a Year Ago as New Listings Surge

Denver, CO – Feb. 17, 2023 (PRNewswire) January’s Median Sale Price of $385,000 was down 1.0% from December, marking the seventh consecutive month of price declines. Year over year, the January 2023 figure was just 1.3% higher than this same time last year – an indication home prices are moderating.

At the same time, the number of homes for sale was 59.4% higher than a year ago in the report’s 51 metro areas, fed by a month-over-month increase in new listings of 39.8%. This month’s gain in new listings was higher than any month last year, with the biggest month-over-month increase in 2022 occurring in March with a gain of 27.7%.

Even with the surge in new listings, home sales declined 26.7% from December and 35.2% year- over-year.

“Home price appreciation seems to have stabilized, and along with additional inventory and longer average days on market, that’s good news for buyers,” said Nick Bailey, RE/MAX President and CEO. “Buyers have more choices, and more time to identify the right house and work with their agent to negotiate with the seller. All of these are positive signs, putting both buyers and sellers in a more balanced position.”

RE/MAX agents across the U.S. are seeing signs of rebalancing in the U.S. housing market.

Carissa Sargent of RE/MAX of Cherry Creek in Denver, CO noted, “The housing market is bouncing back, and we are seeing some multiple offer scenarios again – but with better balance for buyers than we’ve seen over the past few years.” And on the East Coast, Jeffrey Decatur of RE/MAX Capital in Albany, NY noted he’s seeing some similar patterns. “Even though interest rates are up in comparison to the past few years, buyers have been out in full force in 2023. Home prices have increased in our area over the past year despite the rates, and buyers have come to terms with it. They’re jumping in with both feet to realize the benefits of homeownership.”

Reflecting price declines, the average Close-to-List Price Ratio in January was 97%, meaning that homes sold, on average, for 3% less than the asking price. There has been a gradual decline in this metric since May 2022, when sellers were getting 3% over asking price on average. Homes sold in January were on the market 48 days – one day longer than in December and 12 days longer than one year ago.

Highlights and local market metrics for January include:

New Listings 
Of the 51 metro areas surveyed in January 2023, the number of newly listed homes is up 39.8% compared to December 2022, and down 5.1% compared to January 2022. The markets with the biggest decrease in year-over-year new listings percentage were San Francisco, CA at -28.0%, Indianapolis, IN at -25.0%, and San Diego, CA at -23.9%. Leading the year-over-year new listings percentage increase were Dover, DE at +45.9%, Nashville, TN at +45.2%, and Philadelphia, PA at +45.0%.

New Listings:
5 Markets with the Biggest YoY Increase
MarketJan 2023
New Listings
Jan 2022
New Listings
Year-over-Year
% Change
Dover, DE318218+45.9 %
Nashville, TN4,1412,851+45.2 %
Philadelphia, PA8,1595,628+45.0 %
Washington, DC8,5545,997+42.6 %
Trenton, NJ424308+37.7 %

Closed Transactions 
Of the 51 metro areas surveyed in January 2023, the overall number of home sales is down 26.7% compared to December 2022, and down 35.2% compared to January 2022. The markets with the biggest decrease in year-over-year sales percentage were Honolulu, HI at -49.4%, Las Vegas, NV at -48.4%, and Anchorage, AK at  -47.4%. No metro area had a year-over-year sales percentage increase in January.

Closed Transactions:
5 Markets with the Biggest YoY Decrease
MarketJan 2023
Transactions
Jan 2022
Transactions
Year-over-Year
% Change
Honolulu, HI439868-49.4 %
Las Vegas, NV1,7403,375-48.4 %
Anchorage, AK220418-47.4 %
Miami, FL4,2897,691-44.2 %
Portland, OR1,4182,485-42.9 %

Median Sales Price – Median of 51 metro area prices
In January 2023, the median of all 51 metro area sales prices was $385,000, down 1.0% compared to December 2022, and up 1.3% from January 2022. The markets with the biggest year-over-year decrease in median sales price were Bozeman, MT at -6.6%, Honolulu, HI at -6.3%, and San Francisco, CA at -5.6%. Two metro areas increased year-over-year by double-digit percentages, Milwaukee, WI at +13.7% and Indianapolis, IN at +11.3%.

Median Sales Price:
5 Markets with the Biggest YoY Increase
MarketJan 2023
Median Sales Price
Jan 2022
Median Sales Price
Year-over-Year
% Change
Milwaukee, WI$278,600$245,000+13.7 %
Indianapolis, IN$275,000$247,000+11.3 %
Fayetteville, AR$323,005$295,000+9.5 %
Miami, FL$429,000$392,500+9.3 %
Anchorage, AK$359,900$332,000+8.4 %

Close-to-List Price Ratio – Average of 51 metro area prices
In January 2023, the average close-to-list price ratio of all 51 metro areas in the report was 97%, down from 98% in December 2022, and down from 100% in January 2022. The close-to-list price ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price. The metro areas with the lowest close-to-list price ratio were Miami, FL at 93%, Bozeman, MT at 95%, followed by a tie between Las Vegas, NV and New Orleans, LA at 96%. The highest close-to-list price ratios were in Burlington, VT and Hartford, CT tied at 101%.

Close-to-List Price Ratio:
5 Markets with the Biggest YoY Decrease
MarketJan 2023
Close-to-List Price
Ratio
Jan 2022
Close-to-List Price
Ratio
Year-over-Year
Difference
San Francisco, CA98.2 %107.3 %-9.0 pp
Seattle, WA97.5 %104.4 %-6.9 pp
Raleigh, NC97.9 %102.6 %-4.7 pp
Dallas, TX97.0 %101.1 %-4.1 pp
Denver, CO97.7 %101.6 %-4.0 pp



Days on Market – Average of 51 metro areas
The average days on market for homes sold in January 2023 was 48, up one day from the average in December 2022, and up 12 days from the average in January 2022. The metro areas with the lowest days on market were Baltimore, MD at 17, followed by a three-way tie between Dover, DE, Philadelphia, PA, and Washington, DC at 20. The highest days on market averages were in Des Moines, IA at 75, Seattle, WA at 70, and Bozeman, MT at 69. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Days on Market:
5 Markets with the Biggest YoY Increase
MarketJan 2023
Days on Market
Jan 2022
Days on Market
Year-over-Year
% Change
Salt Lake City, UT6321+197.2 %
Denver, CO4617+165.4 %
Las Vegas, NV5727+111.4 %
Portland, OR5627+107.2 %
Bozeman, MT6934+104.3 %

Months’ Supply of Inventory – Average of 51 metro areas
The number of homes for sale in January 2023 was down 6.7% from December 2022 and up 59.4% from January 2022. Based on the rate of home sales in January 2023, the months’ supply of inventory was 2.0, down from 2.5 compared to December 2022, and increased compared to 1.1 in January 2022. In January 2023, the markets with the lowest months’ supply of inventory were a three-way tie between Albuquerque, NM, Manchester, NH, and Seattle, WA at 0.9. The markets with the highest months’ supply of inventory were Bozeman, MT at 3.7, and Miami, FL at 3.6, followed by a tie between Houston, TX and San Antonio, TX at 3.2.

Months’ Supply of Inventory:
5 Markets with the Biggest YoY Increase
MarketJan 2023
Months’ Supply
of Inventory
Jan 2022
Months’ Supply
of Inventory
Year-over-Year
% Change
Raleigh, NC2.10.4+439.8 %
Salt Lake City, UT2.00.4+407.1 %
Coeur d’Alene, ID2.70.6+344.8 %
Bozeman, MT3.70.9+309.2 %
Nashville, TN2.00.5+278.9 %

About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in over 9,000 offices and a presence in more than 110 countries and territories. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit news.remax.com.

Report Details
Beginning with the April 2022 report, RE/MAX is using a new source for aggregated data.

The RE/MAX National Housing Report is distributed monthly on or about the 15th. The Report is based on MLS data for the stated month in 51 metropolitan areas, includes single-family residential property types, and is not annualized. For maximum representation, most of the largest metro areas in the country are represented, and an attempt is made to include at least one metro area in almost every state. Metro areas are defined by the Core Based Statistical Areas (CBSAs) established by the U.S. Office of Management and Budget.

Definitions
Closed Transactions are the total number of closed residential transactions during the given month. Months Supply of Inventory is the total number of residential properties listed for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pending listings) during the month. Where “pending” data is unavailable, an inferred pending status is calculated using closed transactions. Days on Market is the average number of days that pass from the time a property is listed until the property goes under contract. Median Sales Price for a metro area is the median sales price for closed transactions in that metro area.  The nationwide Median Sales Price is calculated at the nationwide aggregate level using all sale prices from the included metro areas.  The Close-to-List Price Ratio is the average value of the sales price divided by the list price for each closed transaction.

MLS data is provided by Seventy3, LLC, a RE/MAX Holdings company. While MLS data is believed to be reliable, it cannot be guaranteed. MLS data is constantly being updated, making any analysis a snapshot at a particular time. Every month, the previous period’s data is updated to ensure accuracy over time. Raw data remains the intellectual property of each local MLS organization.

SOURCE RE/MAX, LLC