Home sales are on the seasonal rise, according to the RE/MAX National Housing Report for May 2023. The late spring saw an 8.7% increase in new listings, meaning that while inventory may still feel a bit scarce, an increase of houses are hitting the market and giving buyers more options. After all, there was an increase in housing supply by 9.7% compared to May 2022.
Those looking to sell their home might see now as a good opportunity to do so. Thanks to strong demand and limited inventory toward the end of spring, the median sales price rose by 3.2% in May 2023, reaching $423,000.
The U.S. housing market is now in the peak months for home sales: June and July. As of May, sales were still down by 18.7% compared to last year, but are trending upward as the year progresses – May 2023 home sales spiked by a whopping 20% compared to the month prior.
“The sizable jump in May home sales signals the start of the peak selling season, but lack of inventory remains the biggest challenge for home buyers,” said Nick Bailey, RE/MAX President and CEO. “With the vast majority of homeowners having a mortgage rate under 5% – and a good chunk of those are under 3.5% – we’re not seeing as much move-up activity as usual. That means fewer available listings for buyers to choose from – and most likely some continuing bumpiness in the market.”
He continued, “That said, sales are still happening, and experienced agents are still finding solutions for their buyers and sellers.”
The latest data from RE/MAX shows that in May 2023, Seattle, Washington had the largest decline in transactions year-over-year. According to John Manning, managing broker of RE/MAX Gateway in Seattle, current homeowners who have a low interest rate mortgage are in no rush to sell and buy a different home with a higher-rate loan.
“The Seattle housing market remains defined by healthy demand and ultra-low supply,” Manning says. “The local economy is extremely strong and well-represented in all the top industry sectors from fishing to medical to technology. While home prices have been pressured by higher mortgage interest rates, homeowners still see their homes as an excellent long-term investment. Additionally, almost all homeowners who purchased before 2022 benefit from historically low interest rates. Combining strong long-term outlook with low-interest mortgages, Seattle homeowners have little incentive to sell their homes.”
Here’s some need-to-know data from the U.S. metro areas surveyed for the May 2023 RE/MAX National Housing Report:
Home Prices Surpass List Prices in Multiple Metro Areas
In May 2023, the average close-to-list price ratio of all 51 metro areas in the report was 100%, up from 99% in April 2023, and down from 103% compared to May 2022. The metro areas with the lowest close-to-list price ratio were Miami, FL at 95%, followed by Coeur d’Alene, ID and New Orleans, LA, tied at 97%. The highest close-to-list price ratios were Hartford, CT at 105%, followed by a three-way tie between Burlington, VT, Manchester, NH, and San Francisco, CA at 104%.
From Lightning-Fast Sales to Surprising Delays
Homes sold in May 2023 spent an average of 31 days on market, down three days from the average in April 2023, and up 10 days from the average in May 2022. The metro areas with the lowest days on market were Manchester, NH and Washington, DC, tied at 11, followed by Baltimore, MD and Trenton, NJ, tied at 12. The highest days on market averages were in Fayetteville, AR at 77, Miami, FL at 51, and Phoenix, AZ at 50.
Scarcity and Surpluses Unveiled
The number of homes for sale in May 2023 was up 0.4% from April 2023 and up 9.7% from May 2022. Based on the rate of home sales in May 2023, the months’ supply of inventory was 1.2, down from 1.3 in April 2023, and increased from 1.1 in May 2022. In May 2023, the markets with the lowest months’ supply of inventory were Manchester, NH at 0.5, followed by a seven-way tie between Albuquerque, NM, Baltimore, MD, Charlotte, NC, Hartford, CT, Milwaukee, WI, Seattle, WA, and Washington, DC at 0.6. The markets with the highest months’ supply of inventory were Coeur d’Alene, ID at 2.7, New Orleans, LA at 2.5, followed by Bozeman, MT and Miami, FL, tied at 2.4.
Ready to make a move this summer? Contact a local RE/MAX agent today.
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Written by MELANIE CLARK
