The usual rise in spring home sales activity didn’t happen in April, according to the RE/MAX National Housing Report for April 2023. Month-over-month across the 49 metro areas surveyed, closings took a 7.6% dip, Median Sales Price increased by 2.3% to $409,000, and inventory trended upwards by 1.8%.
April, did, however, see a 5.6% increase in new listings over March. Compared to the same time period last year, April 2023 experienced a significant drop of 29.5% in sales, accompanied by a 22.1% decline in new listings.
“The data tells a story, but it’s just one side of the story. Sales may be down across the U.S. as move-up buyers, who like their current mortgage rate, choose to stay in their homes,” Bailey says. “But first-time homebuyers are active and those entering the market have an edge as sellers are negotiating more and giving buyers a chance.”
The latest data from RE/MAX shows that in April 2023, homes were up for grabs for an average of 33 days, which is six days less than March 2023 but 10 days longer than April 2022.
Jeffery Decatur of RE/MAX Capital in Latham, New York, says today’s buyers and sellers can navigate a still-competitive housing market with the help of a trusted local agent.
“The fact of the matter is most markets are still experiencing a lack of inventory and appreciation,” Decatur said. “Historically, real estate is one of the best investments… Agents have to educate their clients and help them interpret what is going on in their local market.”
Although it inched upward nationally in April, local inventory is still an issue in many places. According to John Gscheidmeier, Broker/Owner of RE/MAX Service First in Waukesha, Wisconsin, the limited supply of homes in his market – the Milwaukee metro area – is driving up prices and leading to unique negotiation scenarios.
“Sellers are experiencing multiple offers again, with buyers waiving inspections and adding an appraisal gap coverage,” he shares. “This gives the seller some assurance that the buyer will help cover the gap if the home doesn’t appraise at the purchase value, which is giving some sellers confidence to enter the market.”
Here’s the need-to-know data from the U.S. metro areas surveyed for the April 2023 RE/MAX National Housing Report:
Prices Are Fluctuating Across the Nation
In April 2023, the median sales price of all 49 metro areas surveyed was $409,000, up 2.3% compared to March 2023, and down 3.1% from April 2022. The markets with the biggest year-over-year decrease in median sales price were San Francisco, CA at -13.5%, Coeur d’Alene, ID at -12.8%, and Seattle, WA at -10.9%. The markets with the biggest year-over-year increase in median sales price were Cincinnati, OH at +8.4%, Milwaukee, WI at +8.1%, and St. Louis, MO at +7.7%.
Home Sales Dropped in the Month
In April 2023, the overall number of home sales was down 7.6% compared to March 2023, and down 29.5% compared to April 2022. The markets with the biggest decrease in year-over-year sales percentage were San Francisco, CA at -42.3%, Portland, OR at -40.0%, and Seattle, WA at -39.3%. No metro areas had a year-over-year sales percentage increase in April 2023.
More Homes Are Hitting the Market, But Supply is Still Short
The number of homes for sale in April 2023 was up 1.8% from March 2023 and up 24.3% from April 2022. Based on the rate of home sales in April 2023, the months’ supply of inventory was 1.3, flat with March 2023, and increased compared to 1.0 in April 2022. In April 2023, the markets with the lowest months’ supply of inventory were a three-way tie between Charlotte, NC, Manchester, NH, and Seattle, WA at 0.6. The markets with the highest months’ supply of inventory were New Orleans, LA at 2.6, followed by a tie between Coeur d’Alene, ID and Miami, FL at 2.5.
Ready to make a move? Contact a local RE/MAX agent today.
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Written by MELANIE CLARK
