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MortgagePoint September 2023

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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 90 J O U R N A L September 2023 Active inventory decreased in 38 out of 50 of the largest metros compared to last year. Only the Southern region saw inventory grow, up +2.8% year over year, led by New Or- leans (+39.6%); San Antonio, Texas (+34.5%); and Memphis (+33.2%). In July, none of the 50 largest metro areas saw new listings increase over the previous year, and declines were reported the greatest in Phoenix (-44.3%); Seattle (-38.4%); and San Jose, California (-35.3%). In July, national median list prices de- clined slightly year over year for the second month in a row. Despite the dip, the low supply of homes for sale and a resilient labor market are expect- ed to keep upward pressure on prices this year, as will still-high buyer demand. The housing market continues to generally move faster than it did in the pre-pandemic era despite signifi- cant slowing from the frenzied pace of the past few years; while time on market is up slightly from last year, the share of homes with price reductions is down from last July. For the second consecutive month, the U.S. median list price declined slightly (-0.9% year over year) to $440,000 in July, down from $445,000 in June. The median list price is down -2.0% from its record high of $449,000 in June 2022. Higher mortgage rates compared to July of last year increased the monthly cost of fi- nancing 80% of the typical home by roughly $346 (+17.5%) compared to a year ago. Nation- ally, the share of homes with price reductions decreased from 19.1% in July 2022 to 15.5% this year. The share of price reductions remains below typical levels seen in 2017 to 2019. The typical home spent 45 days on market in June, 11 days longer than this time last year, but 12 fewer days than they typically did in the average June 2017-2019. Across the 50 largest U.S. metros, in July 2023 the typical home spent 39 days on the market, eight days more than July 2022. Time on market increased the most in Miami (+24 days); Austin, Texas (+20 days); San Antonio, Texas (+19 days); and Raleigh, North Carolina (+19 days). With rising rates and still-high home prices, the number of home shoppers search- ing for homes in areas other than where they live continue to rise. Realtor.com's Q2 Cross-Market Demand Report found that Western shoppers are most likely to look for out-of-market homes, but Northeast- ern shoppers are catching up—that region saw the highest growth this quarter. While home shoppers show the greatest preference for searching for homes in nearby metros or states, long-distance home searching sometimes pairs unexpected cities, such as from San Francisco to Chicago and Chicago to Dallas. In Q2 2023, 60.3% of all Realtor.com listing views from the Top 100 metros went to homes located outside the metro areas where shop- pers live, up 0.7 percentage points from Q1 2023 and 4.1 percentage points year over year. Regionally, Western home shoppers (67.7%) were most likely to look for out-of- market homes in Q2, but Northeastern shop- pers (59.9%) are catching up. Northeastern shoppers saw the highest growth in Q2, when the share of out-of-market shopping was 5.5 percentage points higher than the prior year.

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