Inventory for all property types declined in almost all areas, except for Rockland’s condo and co-op markets, the latter with an 84.6% gain. The Bronx led the region for new listings, with a 31.9% increase.
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SANTA CLARA CA—Median home list prices have increased 37.5% since May 2019, and while prices grew in that time frame, inventory is down 34.2% compared with typical 2017 to 2019 levels pointing to the market being in seller-friendly territory, according to the Realtor.com May housing data released on June 4.
The New York metro market (New York-Newark-Jersey City, NY-NJ-PA) ranked the highest among the nation’s metropolitan markets with an 84.7% increase in the median listing price per square foot compared to May 2019. The New York metro region’s median listing price of $789,000 in May 2024 was 34% higher than in May 2019. The next highest increase in median listing price per square foot was in the Boston metro market (Boston-Cambridge-Newton, MA-NH) at 72.9%. The Nashville metro market (Nashville-Davidson-Murfreesboro-Franklin, TN) came in third with a 68.6% increase since May 2019.
“In addition to higher median list prices and fewer homes for sale versus 2019, the increase in median price per square foot suggests that the typical home on the market today is worth 52.7% more than before the pandemic, more than double the roughly 23% increase in consumer price inflation in this period,” said Danielle Hale, Chief Economist, Realtor.com.
She continued, “The specifics will vary from market to market, but the data suggest ongoing opportunity for many sellers. Though with mortgage rates still much higher than many existing homeowners enjoy, this opportunity favors sellers who don't have to replace a mortgage, such as investors or second homeowners looking for an exit, or equity-rich homeowners looking to downsize in their current area or to a lower-cost region, as well as those planning to rent their next home.”
A Closer Look at Price per Square Foot
The median price of homes for sale this May remained relatively stable growing from $441,000 last year to $442,500 this year, a slight increase of 0.3%. However, a closer look at the median price per square foot, which can be seen as a better indication of home value, shows an increase of 3.8%. The difference between the percent change in median listing price and median price per square foot shows that, in this time frame, the share of inventory of smaller and more affordable homes has grown, which helps hold down the median price even as per square foot prices grow further. When looking at pre-pandemic levels, across the country the median price per square foot experienced staggering increases. Nearly half of the 50 metros included in the report saw an increase in median price per square foot of at least 50% since 2019
Income Required Continues to Rise
The increase in median price per square foot between May 2019 and now can be seen as a positive for sellers, especially considering the growth of 52.7% suggests the median home on the market is worth that much more today than pre-pandemic. However, for buyers, the increase could mean being priced out for certain homes if their household income did not experience similar or greater growth, especially when taking higher mortgage rates into account. This May, the typical monthly mortgage payment of the median home grew by roughly $158 compared with a year ago. This increased the required household income to purchase the median-priced home by $6,400, to $119,700, after also accounting for the cost of tax and insurance.
Inventory Rises with More Affordable Homes Entering the Market
For the seventh straight month, homes actively for sale rose, with 35.2% more homes actively for sale in May 2024, compared with the same time last year. A few metros saw huge gains in active listings year-over-year including Tampa (87.4%), Phoenix (80.3%), and Orlando (78.0%). A deeper dive into the mix of homes for sale shows a 46.6% increase in homes priced in the $200,000 to $350,000 range across the country year-over-year, even surpassing last month's high of 41.0%, indicating affordable homes continue to enter the market; some much-welcomed news for prospective buyers.
Inventory for all property types declined in almost all areas, except for Rockland’s condo and co-op markets, the latter with an 84.6% gain. The Bronx led the region for new listings, with a 31.9% increase.
Fernandez, who has served as HGAR’s CEO since September 2023, was among three award winners. She joined HGAR after having served as CEO of the Greater Louisville Association of Realtors.
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