Housing Research Brief

July 07, 2023

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Housing Research BriefRoom to Maneuver in Future Meetings

Jan 2022 Housing #2

Sellers retain leverage amid deficient supply. Homebuyers have yet to see the market turn in their favor as of mid-2023, despite predictions offered earlier by some prognosticators. Many anticipated that higher interest rates would stymie purchases and prompt sellers to drop prices. While part of this has come to fruition — heightened debt costs did cool buyer appetite — major valuation adjustments have yet to transpire. In fact, the median sale price of an existing home rose for a third straight month in May to $389,400, the highest measure since July 2022. Upward price momentum is fueled by a dearth of homes coming to the market, sustaining a level of buyer competition amid a shortage of alternatives in most metros. The number of existing homes for sale in May was down about 7 percent year-over-year, and more than 40 percent below the trailing-decade average for that month.

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