Headlines

What’s new in the world of Real Estate

• Housing supply is finally increasing

• The best time to list a home for sale

• The markets where homes are selling the fastest

• Farmland values are at an all-time high

Plus: The CPI numbers, co-ownership rates are growing, NYCB’s struggles, and more.

Listing of the week: Half of a house in Alaska.

Performance

Market Updates

Housing inventory hit a four-year high as new listings started to flood the market. A report from Realtor.com showed 19.9% more total properties for sale than this time last year, with a 17.4% gain in new listings. A separate report from Zillow showed a 12% gain in inventory and a 21% rise in new listings. Finally, Redfin reported a 13% gain in new listings, so while the numbers from each report are slightly different, they all agree that supply is up, which could mean a drop in prices is coming next. Overall, the number of homes on the market is still down significantly from pre-pandemic levels, but it is a step in the right direction for buyers.

Homes listed in early June sold for 2.3% more than a typical home in 2023. A report from Zillow found a price premium nationwide for houses listed between mid-March and August. While buyers usually start to show more interest in the spring, fluctuations in mortgage rates are also driving differences in seasonality. Be aware, though, that the best times to list also vary based on region, as the weather in San Francisco (best time: 2nd half of February) is different than the weather in New York (best time: 1st half of July). The overall takeaway for potential buyers is that deals might be better in the winter, even if going to open houses might be a little less comfortable.

The fastest-selling housing market in the country is Hartford, Connecticut. A report looking at the top 100 metro areas in the U.S. found that seven of the ten fastest-selling (fewest days on the market) regions are in the Northeast, with Rochester, N.Y. and Syracuse, N.Y. following Hartford on the list. Not coincidentally, these markets score highly on affordability, and have also seen a decline in per-capita housing inventory since the beginning of the pandemic. On the flip side, three of the top four slowest-selling regions are in Texas, with Austin coming in at the bottom, as supply is outpacing demand in that part of the country.

Farmland values in the upper Midwest have grown significantly in the past three years. In nearly all regions, prices have reached all-time highs, with gains ranging from 31% in Illinois to 65% in Kansas. However, rising interest rates and lower crop prices could lead to upcoming decreases in value over the next twelve months. Already, some signs of softening are being seen in recent land auctions.