U.S. Housing Market Takes a Step in a Buyer-Friendly Direction

According to the Realtor.com® March housing report, buyers are looking at an optimistic mix of increasing inventory and an uptick in price reductions going into the Spring season. In March, the percentage of homes with price reductions increased to 15.0% – the largest share in 5 years – and the total number of homes actively for sale grew by 23.5% compared to last March (but remains well below pre pandemic levels).

“Sellers are starting to warm up to the current environment, wading into the market in increasing numbers despite market mortgage rates that are likely above their existing rate, if they have a mortgage. As a result, data shows surprisingly competitive pricing trends among sellers, especially in the lead up to this year’s Best Time to Sell, which Realtor.com® reported will be between April 14th – 20th,” said Danielle Hale, Chief Economist of Realtor.com®. “As seller optimism swells, we may see even further inventory gains later in the season that will likely create a more balanced environment for hopeful homebuyers.”

List of the 10 Metro Areas with Largest Share of Price Reductions of Total Inventory

1. Tampa-St. Petersburg-Clearwater, Fla. – 27.6%
2. Phoenix-Mesa-Chandler, Ariz. – 23.0%
3. Austin-Round Rock-Georgetown, Texas – 22.3%
4. Jacksonville, Fla. – 22.1%
5. San Antonio-New Braunfels, Texas – 21.8%
6. Orlando-Kissimmee-Sanford, Fla. – 20.2%
7. Portland-Vancouver-Hillsboro, Ore.-Wash. – 20.1%
8. Miami-Fort Lauderdale-Pompano Beach, Fla. – 19.7%
9. Dallas-Fort Worth-Arlington, Texas – 19.5%
10. Memphis, Tenn.-Miss.-Ark. – 19.3%

Across the country, price reductions were up compared with last year. In the South it was up 3.5 percentage points, +1.0 percentage points in the Midwest, +0.5 percentage points in the Northeast, and +0.2 percentage points in the West.

Between January 2024 and March 2024, the inventory of homes actively for sale was at its highest level since 2020. While inventory looks to be on the upswing, it’s important to note that the market is still down 37.9% compared to pre-pandemic levels. Like in February 2024, one price range in particular has outpaced all other price categories as home inventory between $200,000 and $350,000 grew by 30.5% compared to March 2023. A few metros experienced huge gains in active inventory for sale including Tampa (+58.3%), Orlando (53.3%), and Miami (48.2%).

Median List Price is in Flux; Up from Last Month, But Not Much has Changed from Last Year

The national median list price increased from $415,500 to $424,900 between February and March 2024. But, when compared to last year, the median list price only increased by 0.2% from March 2023. In two weeks of March, the median list price even dipped below last year’s levels. Out of the 50 largest metros, 18 saw their median list price decline compared to last year including Miami (-8.4%), Oklahoma City (-8.3%), and San Francisco (-7.6%), while Los Angeles (+15.1%), Richmond (+11.8%), and Pittsburgh (+11.6%) saw the biggest increases. As prices fluctuate, so do the requirements for financing a home. With mortgage rates hovering between 6.6% and 7% for the past three months, the cost of financing a home (assuming a 20% down payment) increased by $63 compared to last March.

March 2024 Housing Metrics – National