According to a new real estate sales report from RE/MAX, this month’s gain in new listings was higher than any month last year, with the biggest month-over-month increase in 2022 occurring in March with a gain of 27.7%. The number of homes for sale was 59.4% higher than a year ago in the report’s 51 metro areas, fed by a month-over-month increase in new listings of 39.8%. Even with the surge in new listings, home sales declined 26.7% from December and 35.2% year-over-year.
In addition, the report showed that January’s Median Sale Price of $385,000 was down 1.0% from December, marking the seventh consecutive month of price declines. Year over year, the January 2023 figure was just 1.3% higher than this same time last year – an indication home prices are moderating.
“Home price appreciation seems to have stabilized, and along with additional inventory and longer average days on market, that’s good news for buyers,” said Nick Bailey, RE/MAX President and CEO. “Buyers have more choices, and more time to identify the right house and work with their agent to negotiate with the seller. All of these are positive signs, putting both buyers and sellers in a more balanced position.”
Carissa Sargent of RE/MAX of Cherry Creek in Denver, CO noted, “The housing market is bouncing back, and we are seeing some multiple offer scenarios again – but with better balance for buyers than we’ve seen over the past few years.”
And on the East Coast, Jeffrey Decatur of RE/MAX Capital in Albany, NY noted he’s seeing some similar patterns. “Even though interest rates are up in comparison to the past few years, buyers have been out in full force in 2023. Home prices have increased in our area over the past year despite the rates, and buyers have come to terms with it. They’re jumping in with both feet to realize the benefits of homeownership.”
Reflecting price declines, the average Close-to-List Price Ratio in January was 97%, meaning that homes sold, on average, for 3% less than the asking price. There has been a gradual decline in this metric since May 2022, when sellers were getting 3% over asking price on average. Homes sold in January were on the market 48 days – one day longer than in December and 12 days longer than one year ago.