Net new listings and contract volume have officially declined for twelve straight months, according to new data from HouseCanary.
HouseCanary’s latest Market Pulse report, which covers 22 listing-derived metrics and compares data between April 2022 and April 2023, shows market activity was significantly hindered in the first month of Q2.
“As we enter May 2023, the real estate market continues to experience uncertainty, with the purchasing market slowdown being one of the key trends observed for over a year now,” Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, said.
Contract and net new listing volume both fell annually, down 17.8% and 39.8%, respectively.
Listings were hit particularly hard by a nearly 45% YOY increase in removals.
Home sellers who missed out on soaring profits during the pandemic buying frenzy are delisting rather than accepting lower offers. A record number of homes were removed from the market in December 2022, and the trend is continuing as potential sellers locked into low-interest rates see no financial incentive to move.
“Some sellers are having a hard time grasping that we’re not in a housing-market frenzy anymore—it’s tough for them to swallow that they missed the boat on getting a high price,” Heather Kruayai, a real estate agent in Jacksonville, Florida, told Bloomberg.
This is especially true in pandemic-era boom towns where prices surged in the last two years, boxing out many buyers who don’t qualify to buy with rates in the 6%s.
Competition for starter homes is on the rise, with the typical home values for the least-expensive one-third of houses up by 8% YOY in March, while prices for the most expensive properties declined for the first time since at least 2012.
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