More homes were on the market in the second quarter, but a greater supply didn’t translate to lower prices. Generally, the second quarter of the year encompasses the traditional homebuying season, where inventory and prices rise. This year, those patterns held true. For first-time buyers, high mortgage rates and high prices continued to be the biggest obstacles despite the rise in inventory.
Note: This quarter, we’re changing the format of our quarterly affordability analysis to focus primarily on the data. If you’re a member of the media and would like to discuss these findings and what they mean for potential buyers, please reach out to [email protected] to be put in touch with the author of this report or one of our other subject matter experts.
Key Findings
Listing prices rose, and in some metros, they rose considerably.
-
List prices rose 5% in the second quarter to $438,700 on average, nationwide.
-
This puts the typical monthly payment for first-time home buyers at $3,400, assuming a 9% down payment (the average for this group of buyers).
-
Some of the more typically affordable metros are among those where prices rose the most: Buffalo, New York (+14%); Cleveland, Ohio (+12%); Baltimore (+10%); Providence, Rhode Island (+10%); and Detroit (+10%).
Inventory, or the typical number of homes on the market during the month, hit a level not seen since before the pandemic, rising 20% nationwide.
-
On average, the number of active listings rose 28% last quarter in the nation’s 50 largest metros, climbing in each one of the metros analyzed.
-
The number of homes for sale increased the most in San Jose, California (+80%); Seattle (+74%); Boston (+69%); San Francisco (+63%); Denver (+63%); Sacramento (+54%); and Washington, D.C. (+50%).
Second quarter data
The number of active listings plays a big role in whether buyers will find a home that suits their needs.
How much you pay for a home depends significantly on where you buy. Pricing and competition varies across the U.S.
A home’s price is only part of the equation when determining monthly affordability — housing payments also generally include homeowners insurance, real estate taxes and private mortgage insurance if your down payment is less than 20%.
