The National Association of Realtors is reporting that in Q1 2023 seven in 10 metro areas saw home price gains. In addition, they say 7% of the 221 tracked metros registered double-digit price increases over the same period, down from 18% in Q4 2022. The NAR says among the major U.S. regions, the South saw the largest share of single-family existing-home sales (46%) in Q1, with a year-over-year price appreciation of 1.4%. Prices climbed 2.9% in the Midwest yet slipped 0.1% in the Northeast and 5.3% in the West. Unsold Inventory in Q1 averaged 1,630,000 listings at any given time, representing a 40% reduction from Q1of 2019 – a year before the onset of the COVID-19 pandemic.
“Generally speaking, home prices are lower in expensive markets and higher in affordable markets, implying greater mortgage rate sensitivity for high-priced homes…”
“Due to the intense housing inventory shortage, multiple offers are returning, especially on affordable homes…Price declines could be short-lived.” Said the NAR’s Chief Economist Lawrence Yun.