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Would-Be Sellers Face Competition Among Smaller Pool of Buyers

HouseCanary, Inc. [1] has released its latest Market Pulse report [2], covering 22 listing-derived metrics and comparing data between July 2021 and July 2022. The Market Pulse is an ongoing review of proprietary data and insights from HouseCanary’s nationwide platform.

“In July, economic uncertainty and another steep interest rate hike from the Fed appeared to have impacted both seller and buyer behavior," said Jeremy Sicklick, Co-Founder and Chief Executive Officer of HouseCanary. "On one hand, elevated rates have contributed to a decrease in new net listing volume with would-be sellers sitting on high amounts of equity and locked-in low mortgage rates; on the other hand, demand has decreased also due in part to the sharp increase in interest rates, which had deterred potential buyers."

Key findings from this month’s Market Pulse report:

Total Net New Listings:

Monthly Net New Listing Volume (Single-Family Detached Homes):

Listings Under Contract:

Monthly Contract Volume (Single-Family Detached Homes):

Median Listing Price Activity (Single-Family Detached Homes):

"Consequently, these opposing forces have pushed price growth into negative territory, even though prices remain at a record high and the nationwide supply shortage we have experienced since 2020 persists," said Sicklick. "The current market environment is showing some initial signs of cooling and could potentially signal a normalization of supply and demand in the coming months. Looking forward, we are monitoring for any disruption of balance between low demand and low supply, particularly anything that could lead to a significant increase in supply with no reduction in rates that would set the market up for substantial price decreases.”

To read the full report, including charts and methodology, click here [3].