Market Pulse Trends & Market Insights

Market Insights – The Latest Must-Have Tool for Investors 

With persistent market volatility, especially given the latest banking crisis, it’s critical for SFR investors to understand how to gain a competitive advantage. Now more than ever, having the most accurate and reliable analytics can mean the difference in gaining that competitive advantage. 

Unfortunately, SFR investors have historically needed to engage with multiple data sources and providers in order to consume market-level information. This tends to result in disjointed data, often requiring internal analysts to visualize and summarize the data themselves. Beginning today, you can stop piecing together multiple data sources of varying quality in order to achieve a high level of confidence in investment decisions. 

In addition to our Market Pulse report, which can be found further down in the newsletter, we are excited to announce the launch of Market Insights – a new solution that provides SFR investors with the ability to obtain MSA- and ZIP-level analytics to empower proactive, data-driven investment decisions. It allows investors to consume, extract, and visualize HouseCanary’s market-level data in a single web application.

Market Insights can directly impact your investment decisions and portfolios by: 

• Gaining confidence with a comprehensive market view complete with MSA- and ZIP-level data
• Streamlining your market analysis activity by visualizing and extracting market-level data in a single web application 
• Validating investment decisions to internal stakeholders and capital partners
• Making data-driven capital allocation decisions in markets of interest
• Researching and vetting unfamiliar markets

If you’re interested in being one of the first to access Market Insights, reach out to sales@housecanary.com for a demo!

February’s Market Pulse

In addition to Market Insights, our monthly Market Pulse report was released earlier this month. And although the rate hike slowdown from the Federal Reserve in January helped bolster housing market activity, these early signs of a potential rebound were halted in February. 

While higher interest rates continue to slow market activity, we believe that the market environment is still headed towards a buyer’s market, and expect that more normalized supply-demand dynamics and pricing could be in play by the end of 2023.

The insights in our latest edition of the newsletter stem from our monthly Market Pulse report, which is a free monthly update of proprietary information and insights from our nationwide platform.

In our most recent report, we noted that February marked the tenth consecutive month of double-digit declines in net new listings on a year-over-year basis. Consequently, this has continued to drive down prices and lag contract volume, providing little relief to the ongoing inventory shortage. The market is also experiencing significant increases in listing removals year-over-year. On the contrary, the single-family rental market inventory has recovered considerably since the pandemic, experiencing an 88.3% rebound since February 2021.

Key takeaways include: 

• For the month of February 2023, 157,967 net new listings were placed on the market, and 247,294 properties went under contract. This represents a decrease of 43.6% and 17.0%, respectively, versus February 2022.
• The decrease in net new listings was driven by a 31.7% decrease in new listing volume as well as a 72.6% increase in removals compared to February 2022.
• Median days on market stood at 43, up 48.3% from the prior year at 29 days on market. Days on the market decreased by 18.9% on a month-over-month basis.
• The sale-to-list-price ratio stands at 97.1%, which is slightly above the lowest value observed in January 2023.
• Price cuts are up 173.6% year-over-year but are down nearly 63% from their recent peaks occurring in September and October 2022.
• Total single-family rental inventory is up 61.7% from the same period in 2022, and up 88.3% from 2021.

About HouseCanary

Founded in 2013, national real estate brokerage HouseCanary empowers consumers, financial institutions, investors, and mortgage lenders, with industry-leading services including valuations, forecasts, and transactions. These clients trust HouseCanary to fuel acquisition, underwriting, portfolio management, and more. Learn more at www.housecanary.com.

If you are currently working with a real estate agent, this is not meant as a solicitation of your business.

HouseCanary, Inc. is a Licensed Real Estate Brokerage in KS, NM, SC and under the Trade Name ComeHome in AL, AK, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KY, LA, MA, MD, ME, MO, MN, MS, MT, NC, ND, NE, NH, NJ, NV, NY, OH, OK, OR, PA, RI, SD, TN, TX, VA, VT, WA, WI, WV, WY.

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