With Rate Cuts Postponed, Quiet Spring Buying Season Likely to Continue in May

Throughout April, the housing market welcomed an influx of new inventory. Last month, inventory supply surpassed the high points seen in 2023, offering a glimmer of hope in this year’s quiet spring buying season. While inventory remains low from a historical perspective, total housing supply has begun to grow and is rapidly approaching high points seen in 2022. Although this flow of net new listings has lifted some pressure from the market, competition remains stiff among buyers. With contract volumes up 3.7% and days on market down 2.9% in comparison to April 2023, buyers may find themselves vying for available homes. 

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

“While the market has experienced some relief in terms of available inventory, buyers are still contending with interest rate shock. The Federal Reserve has continued to postpone rate cuts, holding interest rates around 5%. This higher-for-longer rate policy has contributed to hesitation for would-be homebuyers. With mortgage rates creeping over 7%, many buyers and sellers alike seem to be holding out for rate cuts in the months ahead before jumping into the housing market.”

Over the past four weeks, we saw home price increases across the country, adding yet another barrier to potential buyers. On a year-over-year basis, the median price of all single-family listings and closed listings rose 3.2% and 8.0%, respectively. With high mortgage rates and surging home prices tamping down market activity, we expect to see a subdued spring buying season continue throughout May, despite inventory increases.

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Key Takeaways:

• Over the last 52 weeks, 2,594,490 net new listings were placed on the market, and 2,589,302 properties went under contract. This represents a decrease of 7.4% and 7.9%, respectively.

• For the month of April 2024, 294,928 net new listings were placed on the market, and 302,560 properties went under contract. This represents an increase of 4.0% and 3.7%, respectively, versus April 2023.

• The increase in net new listings was driven by a 5.6% increase in new listing volume as well as a 14.8% increase in removals compared to April 2023.

• Median days on market stands at 34. This is down 2.9% from where it was one year prior at 35 days on market.

• The median price of all single-family listings in the US was $452,235 and the median closed price was $430,280. On a year-over-year basis, the median price of all single-family listings is up 3.2% and the median price of closed listings is up 8.0%.  Month-over-month, the median price of single-family listings is up 1.4% and the median price of closed listings is up 4.3%.

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Methodology

The Market Pulse Report is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform, covering 22 listing-derived metrics and comparing data between April 2023 and April 2024.

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Click here to view the full report.

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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.