More homes on the market means good news for buyers, at least for those who can afford a higher mortgage than at this time last year.
According to Realtor.com’s monthly housing market trends report, homes for sale rose 30.7 percent in July compared to July 2021, the fastest annual increase since July 2017. However, listings are still 44.4 percent lower than in July 2019. Of the 50 largest metro areas, active listings increased in 45 markets, with the largest increases in active listings in Phoenix (up 158.7 percent compared to July 2021), Austin (154.5 percent) and Raleigh (137.5 percent). In the Washington, D.C., market, active listings increased 5.4 percent in July, compared to July 2021.
Active listings include all homes on the market, even if they are listed for sale. New listings, which include those that hit the market for the first time in the month, were down 2.8 percent nationally in July 2022, compared to July 2021, an indication that economic uncertainty may be keeping sellers out of the market. But in 13 markets, new listings rose 37.6% in Las Vegas compared to July 2021, 37.1% in Nashville and 28.6% in Oklahoma City. In Washington, DC, new listings are down 21.5 percent compared to July 2021.
Despite some signs that buyer demand is slowing, such as fewer mortgage applications and fewer sales, homes continue to sell at higher prices than before the pandemic. In July, homes sold in an average of 35 days, which is two days faster than July 2021 and 25 days faster than July 2019.
The national median price remained high at $449,000 in July, although that was down $1,000 from June’s record high of $450,000. The national average list price in July was 16.6 percent above the median price in July 2021 and 39.5 percent above the median price in July 2019. Typical monthly mortgage payments are 1.5 times higher than they were in July 2021.
Higher prices, especially when borrowers face higher mortgage rates than in the past, make buying a home more challenging in most markets. This is one reason why more than half (53 percent) of Realtor.com buyers are looking for a home outside the market where they live. That’s up from 48 percent in the first quarter of 2022.
Eight of the top 10 markets that attract out-of-town buyers have an average list price lower than the national average. For example, El Paso, where 62.1 percent of listing views were from outside the city, had a median price of $281,642 in July.
Warner Robins, Ga., where 82.2 percent are located outside the city. Alexandria, La. (69.1 percent); Midland, Tex., (65.2 percent); Yakima, Wash. (63.6 percent); and Burlington, Vt. (63.5 percent).