United States Housing Market
United States Housing Market Overview
What is the housing market like right now?
In January 2023, U.S. home prices were up 1.4% compared to last year, selling for a median price of $383,001. On average, the number of homes sold was down 33.5% year over year and there were 275,440 homes sold in January this year, down 414,320 homes sold in January last year. The national average 30 year fixed rate mortgage rate is at 6.3% and up 2.8 points year over year.
What does this mean?
The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable. The median price of a home in the United States is currently $383,001.
What does this mean?
The direction and pace at which homes are bought and sold are indicators of how active and strong the housing market is.
What does this mean?
Mortgage rates determine the cost of financing a home purchase. As mortgage rates rise, home loans and therefore home-buying become more expensive. As rates fall, home-buying becomes more affordable.
U.S. Housing Supply
Are there enough homes for sale to meet buyer demand?
What does this mean?
The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. There are currently 1,322,569 residential homes for sale in the United States.
What does this mean?
The direction and pace at which homes are being listed for sale indicate how active and confident home sellers are, and how fresh the options are for buyers.
What does this mean?
The amount of time homes spend on the market before going under contract is an indicator of how competitive the housing market is. The quicker homes go under contract, the more competitive the market is, and the faster buyers need to act in order to compete. The longer homes spend on the market, the more time and control buyers have. Homes have been on the market for a median of 52 days.
What does this mean?
Months of supply (number of homes for sale divided by the number of homes sold) indicates how long it would theoretically take for every home that’s currently on the market to sell based on the current rate of home-selling activity. A market with six months of supply is considered balanced, with fewer months indicating a seller’s market and more months indicating a buyer’s market.
U.S. Housing Demand
How competitive is the market?
What does this mean?
Homes that sold above list price likely received multiple offers. A high or growing percentage of homes selling above list price indicates that the housing market is competitive and bidding wars are becoming more common. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive.
What does this mean?
The share of homes with price drops is an indicator of sellers struggling to attract buyers. A high or growing share of homes with price drops could suggest that the market is cooling off and shifting toward buyers’ favor. It could also suggest that sellers are pricing homes too high. A low or shrinking share could reflect that the market is heating up or moving toward sellers’ favor. It could also indicate that sellers are pricing homes more realistically.
What does this mean?
The amount of time homes spend on the market before going under contract is an indicator of how competitive the housing market is. The quicker homes go under contract, the more competitive the market is, and the faster buyers need to act in order to compete. The longer homes spend on the market, the more time and control buyers have. Homes have been on the market for a median of 52 days.
U.S. Migration Trends
Responses