Phoenix Leads U.S. With Biggest Decrease in New Home Listings

June posted month-over-month increases in home sales (up 5.4% from May) and inventory (up 7.2%) while year-over-year activity continued to trail the strong results of early 2022. June 2023 home sales were 18.7% below last June’s, contributing to a first-half 24% decline in closings compared to the first half of 2022 across the 52 metro areas surveyed in the RE/MAX National Housing Report. Of note: Phoenix leads the U.S. with the biggest percentage decrease in new home listings.

June’s year-over-year decrease in new home listings of 10.7% was the first such decrease in the past 13 months. New listings, although down 25% compared to a year ago, were up 0.5% over May.

Typically the biggest month for home sales, June produced a median sales price of $425,000 which was the highest since June 2022’s peak price of $426,000.

“June’s month-over-month gain in sales is largely seasonal, but it shows the market’s resiliency in the face of low inventory and higher interest rates,” said RE/MAX President and CEO Nick Bailey. “While we probably won’t see a significant jump in sales activity in the short term, demand is strong and houses are selling when they’re priced right. The expertise of an experienced real estate agent continues to be an important part of the equation for buyers and sellers navigating this rebalancing market.”

Shelley Bridge of RE/MAX Cherry Creek in Denver, CO agreed. “We are back to a more normal market. Homes that are in good locations, good condition and priced fairly are still selling quickly and with multiple offers. However, properties that don’t meet these criteria are taking longer to sell and often need to have price reductions in order to attract a buyer.”

Other notable metrics:

• Months’ Supply of Inventory in June was 1.4, up from May’s 1.3 but below the 1.6 months recorded a year ago.
• The average close-to-list price ratio for June was 100%, indicating that homes sold for the asking price on average. This matched May’s ratio and was a decline from the 102% ratio recorded a year ago.
• Homes sold in June were on the market for an average of 31 days, which was the same in May but 9 days longer than June of last year.

Highlights and local market metrics for June include:

New Listings : Of the 52 metro areas surveyed in June 2023, the number of newly listed homes was up 0.5% compared to May 2023, and down 25.0% compared to June 2022. The markets with the biggest decrease in new home listings were Phoenix, AZ at -54.4%, Las Vegas, NV at -43.3% and Seattle, WA at -35.9%. No markets had an increase in year-over-year new listings percentage.

Closed Transactions: Of the 52 metro areas surveyed in June 2023, the overall number of home sales was up 5.4% compared to May 2023, and down 18.7% compared to June 2022. The markets with the biggest decrease in year-over-year sales percentage were Seattle, WA at -27.8%, Portland, OR at -27.7%, and Anchorage, AK at -27.5%. Only one metro area had a year-over-year sales percentage increase in June, Coeur d’Alene, ID at +0.9%.

Median Sales Price – Median of 52 metro area prices: In June 2023, the median of all 52 metro area sales prices was $425,000, up 2.4% compared to May 2023, and down 0.3% from June 2022. The markets with the biggest year-over-year decrease in median sales price were Coeur d’Alene, ID at -8.0%, Las Vegas, NV at -7.9%, and Phoenix, AZ at -6.5%. The markets with the biggest year-over-year increase in median sales price were Trenton, NJ at +11.5%, Omaha, NE at +10.2%, and Anchorage, AK at +7.8%.