New Report From HouseCanary Shows Affordable Properties Remain Out of Reach Due to Tight Supply, Steep Prices
Lack of Housing Inventory Persists – And Number of Affordable Homes Listed Below $200K Continues to Fall
Nationwide Supply Shortage Continues to Drive Prices Higher, With Median Closed Price of Single-Family Listings Up 21.3% Year-Over-Year
In July, 7.3% Fewer Listings Went Under Contract Compared to the Year Prior, Signaling That Record-High Home Prices May Be Causing Some Buyers to Retreat
HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, released its latest Market Pulse report, covering 22 listing-derived metrics and comparing data between July 2020 and July 2021. The Market Pulse is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform.
Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented: “The nationwide inventory shortage continues to dominate the current market, but the narrowing chasm between net new listings and the number of listings under contract is a positive sign that the supply-demand imbalance is slowly diminishing. In the meantime, as we’ve observed throughout the pandemic, properties below $200K are significantly underperforming as the confluence of strong demand and limited inventory has led to record-high home prices – even in areas that were once considered affordable. Although mortgage rates dipped slightly in July, many prospective homebuyers appeared unable to take advantage due to expensive valuations and limited supply.”
Select findings from this month’s Market Pulse are below. Be sure to review the Market Pulse in full for extensive state-level data.
Total Net New Listings:
- Since July 2020, there have been 3,073,143 net new listings placed on the market, which is a 12.3% increase versus the same period in 2019
- Percentage of total net new listings over the last 52 weeks, broken down by home price:
- $0-$200k: 19.0%
- $200k-$400k: 41.7%
- $400k-$600k: 20.0%
- $600k-$1mm: 12.8%
- >$1mm: 6.5%
- Percent change in net new listing activity over the last 52 weeks versus the same period in 2019, broken down by home price:
- $0-$200k: (-17.4%)
- $200k-$400k: +4.0%
- $400k-$600k: +37.6%
- $600k-$1mm: +64.1%
- >$1mm: +77.9%
Monthly Net New Listing Volume (Single-Family Detached Homes):
- Monthly new listing volume was down 3.7% compared to July 2020
- In July, there were 319,418 net new listings placed on the market, representing a 3.8% decrease year-over-year
- Percent change in net new listing activity year-over-year, broken down by home price:
- $0-$200k: (-16.4%)
- $200k-$400k: (-10.8%)
- $400k-$600k: +11.2%
- $600k-$1mm: +19.6%
- >$1mm: +7.5%
Listings Under Contract:
- Over the last 52 weeks, 3,330,913 properties have gone into contract, representing a 7.4% increase relative to the same period in 2019
- Percentage of total contract volume since July 2020, broken down by home price:
- $0-$200k: 19.2%
- $200k-$400k: 42.0%
- $400k-$600k: 19.7%
- $600k-$1mm: 12.5%
- >$1mm: 6.6%
- Percent change in contract volume over the last 52 weeks versus the same period in 2019, broken down by home price:
- $0-$200k: (-21.6%)
- $200k-$400k: +0.6%
- $400k-$600k: +30.7%
- $600k-$1mm: +56.2%
- >$1mm: +76.8%
Monthly Contract Volume (Single-Family Detached Homes):
- For the month of July, there were 350,182 listings that went under contract nationwide, which is a 7.3% decrease year-over-year
- For the month of July, the percent change in contract volume compared to July 2020, broken down by home price:
- $0-$200k: (-18.8%)
- $200k-$400k: (-13.3%)
- $400k-$600k: +3.8%
- $600k-$1mm: +13.0%
- >$1mm: +9.0%
Median Listing Price Activity (Single-Family Detached Homes):
- For the week ending July 30, 2021, the median price of all single-family listings in the U.S. was $386,681, a 10.4% increase year-over-year
- For the week ending July 30, 2021, the median closed price of single-family listings in the U.S. was $394,541,a 21.3% increase year-over-year
- The median price of all single-family listings in the U.S. is down 1.3% month-over-month and the median price of closed listings has increased by 0.8% month-over-month
As a nationwide real estate broker, HouseCanary’s broad multiple listing service (“MLS”) participation allows us to evaluate listing data and aggregate the number of new listings as well as the number of new listings going into contract for all single-family detached homes observed in the HouseCanary database. Using this data, HouseCanary continues to track listing volume, new listings, and median list price for 41 states and 50 individual Metropolitan Statistical Areas (“MSAs”).
About HouseCanary:
Founded in 2013, valuation-focused real estate brokerage HouseCanary empowers consumers, financial institutions, investors, lenders, and mortgage investors, with industry-leading valuations, forecasts, and transaction support. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.
