MReport November 2022

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M R EP O RT | 39 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION (-17.4%), Midwest (-15.0%), and South (-9.8%). Furthermore, newly listed homes increased in just four markets: Nashville (+10.5%), New Orleans (+6.2%), Dallas (+5.6%), and San Antonio (+1.4%). Compared to October 2020, active inventory was higher in 32 of the 50 biggest markets, led by western (+33.9%) and southern metros (+7.2%): Phoenix (+132.0%); Austin, Texas (+120.8%); Riverside, California (+67.2%); Memphis, Tennessee (+59.7%); and Nashville, Tennessee (+55.7%). Inventory remained lower than two years ago in the Northeast (-21.1%) and Midwest (-7.9%). 2. Competition Stalls as Home Listing Prices and Time on Market Hold Steady W ith home sales activity declining along with af- fordability in October, national trends reflected a market in which competition continued at a cooler pace than during this year's summer peak. However, compared to last month, there was little change in both listing prices and time on market. This may be partly attributed to re- gional variations in supply and demand dynamics, with still- strong home shopper interest in relatively affordable markets balancing out the slowdown in other areas. In the Midwest and Northeast, where buyers saw relatively smaller inventory im- provements in October, time on market and the share of homes with price reductions posted smaller year-over-year increases than in other regions. In October, national listing price trends were relatively unchanged from the prior month, with the median listing price dipping just $2,000 to $425,000. Additionally, annual home listing price growth decelerated just slightly, to 13.3% from 13.9% in September. On average across the 50 largest U.S. metros, yearly listing price growth entered single-digit terri- tory in October (+9.2%). However, for-sale home prices continued to rise by double-digits year over year in 20 markets, led by Milwaukee, Wisconsin (+34.5%); Miami, Florida (+25.1%); and Kansas City, Missouri (+21.4%). The share of homes with price reductions was up 10.3 percentage points to 20.9% in October, well above 2017 (18.1%) and 2019 (17.0%) levels, but just under the 2018 share (21.2%). Western (+18.9 per- centage points) and southern met- ros (+13.6 percentage points) posted the greatest increases in the share of price reductions: Phoenix (+35.9 percentage points); Austin, Texas (+31.2 percentage points); and Las Vegas (+24.4 percentage points). The typical home spent 51 days on the market in October, six days more than last year, but still 20 days faster than the typical 2017-2019 pace. The metros where homes spent longest on the market compared to October 2021 were Raleigh, North Carolina (+27 days); Austin, Texas (+26 days); Phoenix (+21 days); and Las Vegas (+21 days). Time on market declined year-over-year in October in 10 of the 50 largest metros, led by New Orleans (-21 days), where last year's pace was impacted by Hurricane Ida, followed by Richmond, Virginia (-15 days); and Birmingham, Alabama (-6 days). 3. Higher Housing Costs Fuel Demand From Out-of-Town Home Shoppers S imilar to October's for-sale housing trends, the Realtor. com Q 3 Cross-Market Demand Report also highlights regional variations in homebuying activity. With rising rates pushing the typ- ical monthly mortgage payment up 77.1% in October compared to a year ago, some buyers are potentially trying to add room in their budgets by searching further from where they live for lower- priced homes. Nationwide in Q 3 2022, 60.7% of listings views on came from users located outside of the listing's metro, compared to 56.9% during the prior quarter and 52.1% at the same time last year. Regionally, northeastern (69.0%) and western (65.7%) home shop- pers were most likely to search out-of-market in Q 3. This may be attributed to buyers looking for relative affordability, as October median listing prices were higher across large metros in the Northeast ($440,000) and West ($763,000) than in other regions, on average. The typical home spent 51 days on the market in October, six days more than last year, but still 20 days faster than the typical 2017-2019 pace.

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