Housing Research Brief

Dearth of listings allow home prices to surpass 2022 peak. By the early months of this year, the median home price had dropped more than 4 percent from the May 2022 highpoint, stoking some concerns of a potentially steep market correction after a robust pandemic-era run-up. Instead, prices have increased since that point, hushing these fears. In August 2023, the median home price accelerated by its fastest month-over-month pace since March 2021 to reach $403,600, marking a new all-time high. This momentum is powered by a lack of options on the market, with the number of existing homes for sale in August down 15 percent year-over-year and 40 percent, or roughly 585,000 houses, below the trailing-decade average. Meanwhile, the recent upswing in home valuations has done little to encourage potential home sellers to exit the sidelines, as an unwillingness to trade out lower rate mortgages offsets the benefits of appreciation. This is keeping listing counts very low and fueling renewed price growth.