Sellers retain leverage amid deficient supply. Homebuyers have yet to see the market turn in their favor as of mid-2023, despite predictions offered earlier by some prognosticators. Many anticipated that higher interest rates would stymie purchases and prompt sellers to drop prices. While part of this has come to fruition — heightened debt costs did cool buyer appetite — major valuation adjustments have yet to transpire. In fact, the median sale price of an existing home rose for a third straight month in May to $389,400, the highest measure since July 2022. Upward price momentum is fueled by a dearth of homes coming to the market, sustaining a level of buyer competition amid a shortage of alternatives in most metros. The number of existing homes for sale in May was down about 7 percent year-over-year, and more than 40 percent below the trailing-decade average for that month.
Key Features Include:
- Sellers retain leverage amid deficient supply
- Path toward increasing inventory unclear
- Income of renters at an all-time high
- Tides shifting for apartments
- Material prices climbing again
Marcus & Millichap’s Full Report:
Home Prices Tick Up For Third Straight Month; Implications for CRE
Leave A Comment