Sharp Decrease in Demand is Driving Housing Market Cooldown, Latest HouseCanary Data Shows

As Housing Demand Dries Up, Volume of Price Drops are Up 83.2% Compared to September 2021

Properties Priced Under $400k are Underperforming in Both Net New Listing Volumes and Contract Volumes

Declining Demand Led to a 19.2% Decrease in New Listing Volume and 51.0% Increase in Listing Removals

HouseCanary, Inc. (“HouseCanary”), a national brokerage known for its real estate valuation accuracy, today released its latest Market Pulse report, covering 22 listing-derived metrics and comparing data between September 2021 and September 2022. The Market Pulse is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform.

Throughout the year, there has been a continued housing inventory shortage, driven most recently by recurring interest rate hikes as the Federal Reserve tries to combat inflation. Consequently, the post-pandemic housing market has shown a sharp turnaround, with many would-be buyers now deterred by record-high mortgage rates. As 2023 rapidly approaches, HouseCanary insights indicate there will be additional market shifts, with a sharp decrease in demand that is causing sellers to reduce prices or remove listings at a dramatic rate.

Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary, commented:

“The most recent round of rate increases has continued to cause a shift in supply-demand fundamentals by impacting demand and creating a flat price growth environment. Compared to the rate increases in the spring, the market is starting at a different baseline with no momentum to subsequently absorb the slowing of the market volume and price growth. Additionally, the market has seen a 51% increase in listing removals and an 83.2% increase in the volume of price drops over the last year, indicating that declining demand has driven sellers to either reduce their listing prices or remove their homes from the market entirely. While the continued supply shortage remains significant, the recent round of increasing rates is taking a bigger toll than those occurring earlier this year. The increasing rates are expected to continue to negatively impact the market: creating even lower contract volume and putting additional downward pressure on prices.”

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 September 2021, there have been 3,179,129 net new listings placed on the market, which is a 7.6% decrease versus the 52 weeks prior
• Percentage of total net new listings over the last 52 weeks, broken down by home price:
  • $0-$200k: 14.4%
  • $200k-$400k: 37.6%
  • $400k-$600k: 24.1%
  • $600k-$1mm: 16.0%
  • >$1mm: 7.9%
• Percent change in net new listing activity over the last 52 weeks versus the same period in 2021, broken down by home price:
  • $0-$200k: -26.1%
  • $200k-$400k: -16.0%
  • $400k-$600k: +7.1%
  • $600k-$1mm: +11.6%
  • >$1mm: +9.9%

Monthly Net New Listing Volume (Single-Family Detached Homes):

• Monthly new listing volume was down 19.2% compared to September 2021
• In September, there were 236,971 net new listings placed on the market, representing a 29.6% decrease year-over-year
• For the month of September, the percent change in net new listing volume compared to September 2021, broken down by home price:
  • $0-$200k: -36.0%
  • $200k-$400k: -32.0%
  • $400k-$600k: -25.3%
  • $600k-$1mm: -24.7%
  • >$1mm: -23.2%

Listings Under Contract:

• Over the last 52 weeks, 3,194,231 properties have gone into contract, representing an 11.1% decrease relative to the same period in 2021
• Percentage of total contract volume since September 2021, broken down by home price:
  • $0-$200k: 15.0%
  • $200k-$400k: 38.3%
  • $400k-$600k: 23.3%
  • $600k-$1mm: 15.3%
  • >$1mm: 7.6%
• Percent change in contract volume over the last 52 weeks versus the same period in 2021, broken down by home price:
  • $0-$200k: -23.6%
  • $200k-$400k: -18.3%
  • $400k-$600k: +1.4%
  • $600k-$1mm: +4.7%
  • >$1mm: -1.4%

Monthly Contract Volume (Single-Family Detached Homes):

• For the month of September, there were 284,611 listings that went under contract nationwide, which is a 18.9% decrease year-over-year
• For the month of September, the percent change in contract volume compared to September 2021, broken down by home price:
  • $0-$200k: -21.1%
  • $200k-$400k: -21.0%
  • $400k-$600k: -14.7%
  • $600k-$1mm: -15.5%
  • >$1mm: -21.3%

Median Listing Price Activity (Single-Family Detached Homes):

• For the week ending September 30, 2022, the median price of all single-family listings in the U.S. was $433,070, a 12.5% increase year-over-year
• For the week ending September 30, 2022, the median closed price of single-family listings in the U.S. was $399,505, a 6.8% increase year-over-year
• The median price of all single-family listings in the U.S. is down by 0.7% month-over-month and the median price of closed listings has remained unchanged.

About HouseCanary

Founded in 2013, national real estate brokerage HouseCanary empowers consumers, financial institutions, investors, and mortgage lenders, with industry-leading services including valuations, forecasts, and transactions. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.

If you are currently working with a real estate agent, this is not meant as a solicitation of your business.

HouseCanary, Inc. is a Licensed Real Estate Brokerage in KS, NM, SC and under the Trade Name ComeHome in AL, AK, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KY, LA, MA, MD, ME, MO, MN, MS, MT, NC, ND, NE, NH, NJ, NV, NY, OH, OK, OR, PA, RI, SD, TN, TX, VA, VT, WA, WI, WV, WY.

Trade Name ComeHome Real Estate in MI and UT.

Trade Name ComeHome by HouseCanary in AR.

HouseCanary, Inc., brokerage information

TREC Info About Brokerage Services

TREC Consumer Protection Notice

NY Standard Operating Procedures

California DRE #02113022

AVM Disclosure: An AVM is an estimated sale price for a property. It is not the same as the opinion of value in an appraisal developed by a licensed appraiser under the Uniform Standards of Professional Appraisal Practice.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221005005308/en/