Mortgage Rate Drops Begin to Encourage Market Activity

Net New Listing and Contract Volume Marginally Up Versus December 2022

Interest Rate Shock Continues to Keep Inventory at Historically Low Levels

San Francisco, CA – January 04, 2024 (BUSINESS WIRE) HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, today released its December Market Pulse Report, showing that activity in terms of net new listings placed on the market is up 5% versus December 2022.

With the Federal Reserve keeping rates steady in December and mortgage rates dropping slightly, affordability has marginally improved. As a result, the market saw the first signs of positive activity in terms of both net new listings and properties under contract. Cooling inflation and anticipated rate cuts this year signal further positive momentum is to come. However, given inventory remains at historically low levels, sales growth is expected to be gradual and modest.

Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented:

“The slight increase in December listings indicates the impact of lower mortgage rates is beginning to trickle down into the market which comes as an optimistic sign as we head into the new year. With that said, any market turns are likely to be slow. The mortgage rate lock-in effect is going to keep many would-be sellers who secured pre-pandemic mortgage rates of sub 5% little incentive to move, meaning low inventory will be a continuing trend. As we enter the year ahead, promising signs that the Federal Reserve will cut rates persist, which will provide at least some relief for homebuyers looking to purchase in 2024.”

Key Takeaways:

• Over the last 52 weeks, 2,504,407 net new listings were placed on the market, and 2,589,823 properties went under contract. This represents a decrease of 18.1% and 13.5%, respectively versus 2022.
  
• For the month of December 2023, 110,572 net new listings were placed on the market, and 183,184 properties went under contract. This represents an increase of 5.0% and 7.0%, respectively, versus December 2022.
  
• The increase in net new listings was driven by a 0.8% decrease in new listing volume that was offset by a larger 9.5% decrease in removals compared to December 2022.
  
• Median days on market stands at 51. This is down 5.6% from where it was one year prior at 54 days on market.
  
• The median price of all single-family listings in the US was $424,729 and the median closed price was $394,223. On a year-over-year basis, the median price of all single-family listings is up 3.1% and the median price of closed listings is up 5.6%. Month-over-month, the median price of single-family listings is down 1.2% and the median price of closed listings is down 0.5%.

Methodology

The Market Pulse Report is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform, covering 22 listing-derived metrics and comparing data between December 2022 and December 2023.

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

San Francisco, CA – August 02, 2023 (BUSINESS WIRE) HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, today released its latest National Rental Report, highlighting that listing inventory is up 70% year-over-year and days on market is up 50% year-over-year as median monthly rent prices have seemingly reached a peak.

Despite median listing prices for Single-Family Rentals in other parts of the United States slowing down, Metropolitan Statistical Areas (MSA) in the East Coast and Industrial Midwest continue to be hotspots for real estate investment opportunities due to dramatic price increases since Q2 2022.

HouseCanary’s data also finds that Naples-Immokalee-Marco, FL, which previously held the title for the most expensive median monthly rent prices in the U.S, has now been surpassed by Los Angeles-Long Beach-Anaheim, California and San Diego-Carlsbad, California.

Chris Stroud, Co-founder and Chief of Research at HouseCanary, commented: “In Q2, we’ve seen the rental market continue to increase in median listings, prices and days on market. While SFR prices only experienced slight year-over-year increases, the surge in available-for-rent inventory suggests that rental prices have reached their peak and are anticipated to trend downwards in the coming months. As interest rate hikes slow down and inventory remains elevated, single-family rentals remain an attractive option for potential home buyers, providing stability to the rental market.”

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 second quarter of 2023:

• Rent prices remain historically high despite a very slight increase in year-over-year price growth. With about 70% year-over-year increases in the weekly average of listings in the second quarter of 2023, prices of single-family rentals have only seen a slight year-over-year increase of about 0.2%.
• Southern states have experienced the most upward growth in the number of listings available for rent in the market. Most notably, MSAs located in Florida, Louisiana, and North Carolina experienced the largest growths in inventory year-over-year and made up 80% of the top 10 MSAs with the largest increases.
• Two California MSAs now top the list for the nation’s highest median rent prices of Q2 2023. MSAs in California and Florida boasted some of the most expensive single-family median monthly rental prices. MSAs in these two states comprised 70% of the 10 highest average monthly rents across the country, with Los Angeles-Long Beach-Anaheim, California and San Diego-Carlsbad, California taking the top spots with a median price of $4,984 and $4,862 per month, respectively.
• By the end of Q2 2023, rental properties stayed on the market for an average of 25.8 days, roughly a 43.97% increase since the same period in 2022. Most notably, six of the top 10 MSAs showing the largest annual increases in days on market year-over-year are located in the South of the United States. Of which, Raleigh, North Carolina boasted a 165% increase since Q2 2022 and claimed the top spot on the list.
• Rent prices have likely peaked and are expected to remain high as potential home buyers are still hesitant to enter the purchase market. High prices and interest rates have provided somewhat of a floor to any possible large decreases in rental prices in the near future.

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

Methodology

HouseCanary’s Q2 Rental Report compares insights from Q2 2022 and Q2 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 April 2023 and June 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 Notice
California 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