State of the housing market: February 2023

PayProp Insights highlights key housing trends with our monthly data roundup.*

The Federal Reserve’s interest rate hikes seem to be working as intended, as trends reported in January show a stabilizing housing market. That could change if inflation starts increasing again, but for now real estate experts are cautiously optimistic.

• According to Realtor.com, the median national list price for homes remained constant from December to January at $400,000.
• Realtor.com’s January housing data looks seems to point to a turnaround – key metrics are either greater year over year (+65.5% active inventory; +13.1% total listings), or showing slower YoY decline than in December (-31.9% pending listings vs. -36.8%; -5.4% newly listed homes vs. -21%).
• Nearly all these metrics are still below pre-pandemic levels, but the rising listing numbers and stabilizing prices offer hope that an economic recovery is around the corner.
• According to data from Zumper, the national median rent for one-bedrooms fell just 0.3% from $1,496 in December to $1,492 in January. At $1,822, two-bedroom median rent is unchanged from last month. ‍
• Single-family housing starts in January were at a rate of 841,000, down 4.3% from the revised December figure of 879,000.
• However, the National Association of Home Builders reports a builder sentiment index of 42, up seven points from the previous month, signaling that builders are also finally regaining confidence in the market for newly constructed single-family homes.

* Our curated overview features key housing market indicators, with an emphasis on the single-family rental market.

More housing headlines

Inflation cooled again in January in a bumpy downward trend – HousingWire‍

Biden barely mentioned the deflated housing market. What’s next for renters, buyers and owners? – The Hill

When it’s easy to be a landlord, no one wants to sell – The New York Times