Press release
Realtor.com® May Housing Report: Median Price Per Square Foot Experiences Monumental Rise Growing 52.7% Since 2019
Across the U.S., New York (84.7%), Boston (72.9%), and Nashville (68.6%) Experienced the Highest Increases in Median Price Per Square Foot Since Before the
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[{"type":"text","content":"Across the U.S., New York (84.7%), Boston (72.9%), and Nashville (68.6%) Experienced the Highest Increases in Median Price Per Square Foot Since Before the Pandemic\nSANTA CLARA, Calif., June 4, 2024 /PRNewswire/ -- According to the Realtor.com® May housing data, median list prices have increased 37.5% since May 2019, and while prices grew in that time frame, inventory is down 34.2% compared with typical 2017 to 2019 levels pointing to the market being in seller-friendly territory.\n\n\"In addition to higher median list prices and fewer homes for sale versus 2019, the increase in median price-per-square foot suggests that the typical home on the market today is worth 52.7% more than before the pandemic, more than double the roughly 23% increase in consumer price inflation in this period.\" said Danielle Hale, Chief Economist, Realtor.com® \"The specifics will vary from market to market, but the data suggest ongoing opportunity for many sellers. Though with mortgage rates still much higher than many existing homeowners enjoy, this opportunity favors sellers who don't have to replace a mortgage, such as investors or second homeowners looking for an exit, or equity-rich homeowners looking to downsize in their current area or to a lower-cost region, as well as those planning to rent their next home.\"\nMay 2024 Housing Metrics – National\nMetric\nChange over May 2023\nChange over May 2019\nMedian List Price Per Sq.Ft.\n+3.8 %\n+52.7\nMedian listing price\n+0.3% (to $442,500)\n+37.5 %\nActive listings\n+35.2 %\n-33.3 %\nNew listings\n+6.2 %\n-26 %\nMedian days on market\n+1 days (to 44 days)\n -8 days\nShare of active listings with price reductions\n+3.8 percentage points \n(to 16.6%)\n+1.2 percentage points\nA Closer Look at Price Per Square FootThe median price of homes for sale this May remained relatively stable growing from $441,000 last year to $442,500 this year, a slight increase of 0.3%. However, a closer look at median price-per-square foot, which can be seen as a better indication of home value, shows an increase of 3.8%. The difference between percent change in median listing price and median price-per-square foot shows that, in this time frame, the share of inventory of smaller and more affordable homes has grown, which helps hold down the median price even as per-square-foot prices grow further. When looking at pre-pand...