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Housing Supply Shortage Continues Despite Increasing Interest Rates

Katie Jensen
Jul 13, 2022
supply shortage

Net new listings increase for pricey homes (400k+), while new listings for affordable homes decrease.

KEY TAKEAWAYS
  • The volume of price drops on active listings increased by triple digits year-over-year, signaling that a normalization of supply-demand fundamentals may be on the horizon.
  • Macroeconomic indicators show signs of a recession in the broader economy, HouseCanary co-founder and CEO Jeremy Sicklick says.
  • Since June 2021, there have been 3,189,698 net new listings placed on the market, a 4.3% decrease vs. last year.
  • In June, 320,350 listings went under contract nationwide, a 12.2% decrease year-over-year. 

Nationwide brokerage HouseCanary Inc. released its latest Market Pulse report comparing data between June 2021 and June 2022. 

Since June 2021, 3,189,698 net new listings have been placed on the market, a 4.3% decrease from last year. By home price, the percentage of total net new listings over the last 52 weeks was 15% for homes in the $0-$200,000 range;  37.9% for homes in the $200,000-$400,000 range; 23.7% for homes in the $400,000-$600,000 range; 15.7% for homes in the $600,000-$1 million range; and 7.7% for homes in the $1 million+ range.

The percent change in net new listing activity over the last 52 weeks compared with the same period in 2021, broken down by home price, was -24% for homes in the $0-$200,000 range; -13.9% for homes in the $200,000-$400,000 range; +13.5% for homes in the $400,000-$600,000 range, +19.1% for homes in the $600,000-$1 million range, and +14.5% for homes in the $1 million+ range. 

“In June, we continued to see signs of cooling in the housing market as price growth began to slow for the first time since April 2020,” said HouseCanary Co-Founder and CEO Jeremy Sicklick. “Buyers continue to experience a competitive environment with supply outweighing demand. However, it is important to highlight that the volume of price drops on active listings increased by triple digits year-over-year, signaling that a normalization of supply-demand fundamentals may be on the horizon.” 

“In the near term, we expect price increases to slow, with a potential uptick in housing supply,” Sicklick continued. “As we look to the remainder of 2022, we are monitoring for potential changes in the market that could point to a disruption in the supply-demand status quo we have experienced since the onset of the pandemic, especially as macroeconomic indicators are showing signs of a recession in the broader economy.”

Over the last 52 weeks, 3,291,632 properties have gone into contract, an 8.1% decrease from the same period in 2021. 

The percentage of total contract volume since June 2021, broken down by home price:

  • $0-$200,000: 16.0%
  • $200k-$400,000: 38.7%
  • $400k-$600,000: 23.0%
  • $600k-$1 million: 15.0%
  • >$1 million: 7.3%

The percent change in contract volume over the last 52 weeks versus the same period in 2021, broken down by home price:

  • $0-$200,000: -22.5%
  • $200,000-$400,000: -16.1%
  • $400,000-$600,000: +7.0%
  • $600,000-$1 million: +10.9%
  • >$1 million: +4.0%

For the month of June, 320,350 listings went under contract nationwide, a 12.2% decrease year-over-year. 

For the month of May, the percent change in contract volume compared to May 2021, broken down by home price:

  • $0-$200,000: -15.2%
  • $200,000-$400,000: -16.7%
  • $400,000-$600,000: -3.8%
  • $600,000-$1 million: -6.9%
  • >$1 million: -15.8%

For the week ending July 8, 2022, the median price of all single-family listings in the U.S. was $443,895, a 13.8% increase year-over-year. The median closed price of single-family listings in the U.S. was $424,852, a 10.3% increase year-over-year

For the week ending July 8, 2022, the median price of all single-family listings in the U.S. is down by 1.1% month-over-month and the median price of closed listings has decreased by 0.3% month-over-month. 

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