National Housing Report for August 2023 Released, Phoenix YOY New Listings Rose 36.6%

New listings rose 1.8% sequentially in August, bucking the typical July-to-August seasonal trend of decline. Last year, new listings declined 12.8% in August, the second month in a streak of six month-to-month declines that ended in January.

Home sales rose 7.4% over July and the Median Sales Price of $425,000 was unchanged across the 50 metro areas surveyed.

Meanwhile, year-over-year new listings were down 13.2% while home sales dropped 13.1%. The Median Sales Price, on the other hand, was up 3.7%.

The number of homes for sale increased 2.7% in August, the fifth straight month of inventory buildup. Compared to August 2022, however, inventory was 13.2% lower.

“Buyers should be pleased to see the slow but ongoing ramp-up in available listings, regardless of comparisons to a year ago,” says Nick Bailey, RE/MAX President and CEO. “More listings mean more options, and that’s a plus for buyers who haven’t been able to find the right home yet – and for potential buyers who’ve been reluctant to start looking. With new listings emerging, sales ticking up and prices stabilizing, there were several things to like in the August results.”

Todd Luong, a real estate agent with RE/MAX DFW Associates in Dallas-Fort Worth, Texas, notes that slight inventory increases can affect sales prices. “Inventory increased slightly in August in the Dallas-Fort Worth market and home prices are starting to catch their breath as we saw a small decline in prices from July to August. Overall, homes priced below the median price range are still selling relatively quickly, as affordability remains an issue for many people.”

Other notable metrics:

• Homes sold for an average of 99% of the listing price in August, compared to 100% in both July and August 2022.
• Months’ supply of inventory in August was 1.7, the same as July 2023 and August 2022.
• Homes sold in August were on the market an average of 34 days, which was 3 days longer than in July and 5 days longer than August of last year.

Highlights and local market metrics for August include:

New Listings 
Of the 50 metro areas surveyed in August 2023, the number of newly listed homes is up 1.8% compared to July 2023, and down 13.2% compared to August 2022. The markets with the biggest decrease in year-over-year new listings percentage were Phoenix, AZ at -36.6%, Las Vegas, NV at -32.9%, and Raleigh, NC at -29.5%. The markets with the biggest year-over-year increase in new listings percentage were Bozeman, MT at +20.1%, Milwaukee, WI at +11.7%, and Wichita, KS at +6.4%.

Closed Transactions 
Of the 50 metro areas surveyed in August 2023, the overall number of home sales is up 7.4% compared to July 2023, and down 13.1% compared to August 2022. The markets with the biggest decrease in year-over-year sales percentage were Anchorage, AK at -25.2%, Cleveland, OH at -23.7%, and Manchester, NH at -23.3%. Only two markets had an increase in year-over-year sales percentage, Bozeman, MT at +12.0% and Dover, DE at +1.2%.

Median Sales Price – Median of 50 metro area prices 
In August 2023, the median of all 50 metro area sales prices was $425,000, flat compared to July 2023, and up 3.7% from August 2022. The markets with the biggest year-over-year decrease in median sales price were Salt Lake City, UT at -3.7%, Phoenix, AZ at -2.6%, and Portland, OR at -1.7%. The markets with the biggest year-over-year increase in median sales price were Milwaukee, WI at +12.4%, Manchester, NH at +10.7%, and Bozeman, MT at +10.4%.

Close-to-List Price Ratio – Average of 50 metro area prices 
In August 2023, the average close-to-list price ratio of all 50 metro areas in the report was 99%, down compared to 100% in both July 2023 and August 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 95%, followed by a four-way tie between Bozeman, MT, Coeur d’Alene, ID, New Orleans, LA, and San Antonio, TX at 97%. The highest close-to-list price ratios were Hartford, CT at 105% and Trenton, NJ at 104%.

Days on Market – Average of 50 metro areas       
The average days on market for homes sold in August 2023 was 34, up 3 days compared to the average in July 2023, and up 5 days from the average in August 2022. The metro areas with the lowest days on market were Baltimore, MD at 11, Washington, DC at 13, followed by a tie between Dover, DE and Philadelphia, PA at 15. The highest days on market averages were in Fayetteville, AR at 70, followed by a tie between Coeur d’Alene, ID at and San Antonio, TX at 61. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months’ Supply of Inventory – Average of 50 metro areas           
The number of homes for sale in August 2023 was up 2.7% from July 2023 and down 13.2% from August 2022. Based on the rate of home sales in August 2023, the months’ supply of inventory was 1.7, flat compared to both July 2023 and August 2022. In August 2023, the markets with the lowest months’ supply of inventory were a tie between Charlotte, NC and Trenton, NJ at 0.7. The markets with the highest months’ supply of inventory were a tie between Bozeman, MT and San Antonio, TX at 3.7, followed by Houston, TX at 3.3.