November housing market is a ‘Tale of Two Markets’

  • Larger metros see price cuts; prices continue to grow in smaller, more affordable areas
  • Overall, 22 percent of listings saw price reductions
  • Inventory increased 4 percent nationally, 9 percent in larger markets
  • Average median home price is $293,000, up 9 percent from a year ago

The U.S. housing market showed signs of cooling in many of the nation’s largest metros this month with inventory increases outpacing the rest of the country, listing prices slowing and price cuts increasing. In contrast, smaller, more affordable markets continued to see price gains, according to realtor.com®‘s November housing report released today.

During the month of November, U.S. housing inventory rose 4 percent. However, in the nation’s largest and most expensive metros, inventory increased at a more rapid 9 percent. Seven of the 10 markets posting the largest year-over-year inventory increases are located on the West Coast, five of which are in California.

“The housing market is a Tale of Two Cities as the divergence widens between high-cost, large urban areas, and smaller, more affordable markets,” said Danielle Hale, chief economist for realtor.com. “Buyers in larger metros are seeing more homes on the market and listing prices decline, while those in smaller markets continued to see price increases.”

Nationally, the percentage of listings that saw price reductions increased to 22 percent in November, up from 19 percent a year ago. The increase is being driven by the nation’s largest markets. In fact, 40 of the 45 top markets saw an increase in price reductions. San Jose, Calif., topped the list with the share of price reductions growing by 16 percent, from 17 percent last year to 33 percent in November. It was followed by Indianapolis (+15 percent), Seattle (+12 percent), San Francisco (+9 percent) and San Diego(+9 percent).

Small markets propel 9 percent increase in home prices

READ  Poll: Most Believe U.S. Electric Grid Vulnerable to Enemy Attack

The median U.S. listing price grew 9 percent year-over-year to $293,000 in November, down slightly from October, which is in line with the usual seasonal pattern, but higher than last year’s increase of 8 percent.

Of the 45 metros, 35 still saw year over year gains in their median listing price, however only 8 markets outpaced the national growth rate of 9 percent. This indicates that although prices are still increasing nationally, the gains are predominantly from smaller markets. Chattanooga, Tenn. (+17%), Spokane, Wash. (+15%), and GreensboroHigh Point, N.C. (+14%) are some of the markets that posted the highest year-over-year median list price growth.

The steepest declines were felt in San Jose, Calif. and Austin, Texas, which were down 4 percent, or $41,000 and $15,000, respectively. Jacksonville, Fla.Nashville, Tenn.HoustonTampa, Fla.Dallas, and San Francisco also saw declines.

Homes continued to sell at a relatively rapid pace of 71 days on average in November, five days faster than last year.

Metro

Active
Listing
Count YoY

New
Listing
Count YoY

Median
Listing
Price YoY

Price
Reduced
Count YoY

Price
Reduced
Share Y-Y

San Jose-Sunnyvale-Santa Clara, Calif.

160%

19%

-4%

415%

16%

Seattle-Tacoma-Bellevue, Wash.

78%

13%

10%

156%

12%

San Francisco-Oakland-Hayward, Calif.

58%

15%

-1%

151%

9%

San Diego-Carlsbad, Calif.

46%

17%

1%

88%

9%

Nashville-Davidson–Murfreesboro–Franklin, Tenn,

31%

10%

-2%

52%

3%

Portland-Vancouver-Hillsboro, Ore.-Wash.

29%

-1%

1%

45%

4%

Los Angeles-Long Beach-Anaheim, Calf.

27%

15%

4%

76%

7%

Boston-Cambridge-Newton, Mass.-N.H.

19%

13%

1%

58%

7%

Jacksonville, Fla.

18%

11%

-2%

43%

5%

Riverside-San Bernardino-Ontario, Calif.

18%

6%

4%

52%

6%

Dallas-Fort Worth-Arlington, Texas

17%

7%

-1%

25%

2%

Tampa-St. Petersburg-Clearwater, Fla.

16%

12%

-1%

36%

6%

Detroit-Warren-Dearborn, Mich.

14%

19%

5%

27%

3%

Atlanta-Sandy Springs-Roswell, Ga.

12%

10%

5%

33%

4%

New York-Newark-Jersey City, N.Y.-N.J.-Penn.

12%

9%

11%

32%

3%

Orlando-Kissimmee-Sanford, Fla.

11%

7%

1%

45%

8%

Houston-The Woodlands-Sugar Land, Texas

11%

10%

-1%

18%

2%

Miami-Fort Lauderdale-West Palm Beach, Fla.

10%

4%

0%

23%

2%

Minneapolis-St. Paul-Bloomington, Minn.-Wis.

8%

10%

4%

29%

5%

Austin-Round Rock, Texas

8%

2%

-4%

18%

3%

Charlotte-Concord-Gastonia, N.C.-S.C.

8%

8%

0%

42%

8%

San Antonio-New Braunfels, Texas

6%

11%

2%

20%

3%

Raleigh, N.C.

5%

11%

1%

30%

5%

Hartford-West Hartford-East Hartford, Conn.

5%

-4%

3%

5%

0%

Kansas City, Mo.-Kan.

4%

0%

10%

54%

9%

Chicago-Naperville-Elgin, Ill.-Ind.-Wis.

3%

5%

4%

11%

2%

Richmond, Va.

2%

14%

3%

29%

6%

Rochester, N.Y.

1%

9%

6%

34%

6%

New Orleans-Metairie, La.

0%

-11%

2%

-11%

-3%

Cincinnati, Ohio-Ky.-Ind.

0%

8%

9%

8%

2%

Buffalo-Cheektowaga-Niagara Falls, N.Y.

-1%

0%

8%

5%

2%

Virginia Beach-Norfolk-Newport News, Va-N.C.

-2%

-2%

3%

3%

1%

Memphis, Tenn.-Miss.-Ark.

-2%

0%

11%

7%

2%

Louisville/Jefferson County, Ky.-Ind.

-2%

-6%

10%

-2%

0%

Cleveland-Elyria, Ohio

-3%

4%

9%

10%

3%

Phoenix-Mesa-Scottsdale, Ariz.

-3%

4%

3%

14%

7%

St. Louis, Mo.-Ill.

-3%

-12%

8%

-3%

0%

Washington-Arlington-Alexandria, D.C.-Va-Md.-W.V.

-5%

-5%

1%

7%

3%

Baltimore-Columbia-Towson, Md.

-6%

-7%

3%

11%

4%

Philadelphia-Camden-Wilmington, Penn.-N.J.-Del.-Md.

-7%

-10%

9%

2%

3%

Pittsburgh, Penn.

-7%

5%

2%

-3%

1%

Oklahoma City, Okla.

-8%

-2%

6%

-13%

-2%

Milwaukee-Waukesha-West Allis, Wis.

-9%

7%

13%

7%

3%

Birmingham-Hoover, Ala.

-9%

-3%

10%

7%

2%

Indianapolis-Carmel-Anderson, Ind.

-11%

4%

13%

39%

15%

Wake up Right! Subscribe to our Morning Briefing and get the news delivered to your inbox before breakfast!

About R. Mitchell

Rich Mitchell is the editor-in-chief at Conservative Daily News, a Conservative political commentator, and a contributor at The Main Street Examiner. His views are his own and may not reflect those of the Main Street Examiner, its staff, leadership or ... much of anyone else. Find him on twitter, facebook and

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Sign up for The Main Street Examiner's Morning Brief

Subscribe to the MSE Morning Brief

* indicates required



Email Format


Subscribe!