DENVER, Nov. 18, 2013 /PRNewswire/ -- Following
historic seasonal trends, October home sales edged 2.8% lower than
September, but still pushed 2.2% higher than sales in October 2012. Median home prices were 11.9% above
prices seen last October. October becomes the 21st
month to experience year-over-year increases in both sales and
prices. The Median Price of all homes sold in October was
$179,950. Inventories of homes
for sale were 12.2% lower than the levels in October last year. For
the last 29 months in a row, inventories have declined at a slower
rate. The October inventory drop is half of the annual loss seen as
recently as June. At the current rate of sales, the number of
months required to sell the entire inventory of homes on the market
was 4.9. A 6-month supply is recognized as a balanced market with
an equal number of buyers and sellers.
"What we're seeing now are predictable seasonal cycles, which
is just another sign that the housing recovery is bringing us back
to a more normal market," said Margaret
Kelly, RE/MAX
CEO. "Home sales are expected to slow down during
the holidays and winter months before returning to the next growth
cycle in the spring."
Transactions – Year-Over-Year Change
The October RE/MAX National Housing Report found a 2.8% monthly
decrease in sales, but also found a 2.2% increase from sales in
October last year. October becomes the 28th consecutive
month reporting higher sales than the same month in the previous
year. For the most part, normal seasonal trends are responsible for
slowing month-to-month changes in home sales. Of the 52 metro areas
surveyed in October, 35 reported higher sales than in October 2012, with 19 reporting double-digit
gains, including: New York, NY
+32.6%, Trenton, NJ +32.5%,
Anchorage, AK +24.2%, Philadelphia, PA +18.2%, Wilmington, DE +18.1%, and Manchester, NH +17.1%.
Median Sales Price
In October, the Median Price of all homes sold was $179,950. This price is a 2.7% drop from the
Median Price in September, but an 11.9% increase from the price
seen in October last year. For 21 consecutive months the Median
Price of a home has been greater than in the same month of the
previous year. Home price increases can be tied directly to a low
inventory and strong buyer demand. Of the 52 metro areas surveyed
in October, 45 experienced higher sales prices than one year
ago. Of those, 19 metro areas reported double-digit
increases, including: Detroit, MI
+45.2%, Atlanta, GA +37.1%,
Las Vegas, NV +31.8%, Orlando, FL +26.5%, San Francisco, CA +23.8% and Phoenix, AZ +23.3%.
Days on Market – Average of 52 Metro Areas
In the month of October, the average number of Days on Market for
all homes sold in the 52 surveyed markets was 66. This is one day
higher than the average seen in September, but is 16 days lower
than the average seen in October
2012. October marks the 17th consecutive month
with an average Days on Market below 90. A low Days on Market
average, like 66 seen in October, is the direct result of continued
high demand and a reduced inventory of homes for sale. Days on
Market is the number of days between when a home is first listed in
an MLS and when a sales contract is signed.
Months Supply of Inventory – Average of 52 Metro
Areas
The housing market has been plagued by a low inventory environment,
but for 7 consecutive months, inventory has declined at a slower
rate than during the same month of the previous year. While not yet
adding inventory, the situation is improving. In October, there
were 5.1% fewer homes for sale than in September, and 12.2% fewer
than in October 2012. At the rate of
home sales in October, the Months Supply of inventory was 4.9.
Extremely low Months Supply remains in some key markets such as:
San Francisco, CA 1.4,
Denver, CO 2.3, Los Angeles, CA 2.4, Orlando, FL 2.7, Honolulu, HI 2.8, and San Diego, CA 2.8.
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(NYSE:RMAX).
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visit www.remax.com.
Description
The RE/MAX National Housing Report is distributed each month on or
about the 15th. The first Report was distributed in
August 2008. The Report is based on MLS data in approximately
52 metropolitan areas, includes all residential property types, and
is not annualized. For maximum representation, many of the
largest metro areas in the country are represented, and an attempt
is made to include at least one metro from each state. Metro area
definitions include the specific counties established by the U.S.
Government's Office of Management and Budget, with some
exceptions.
Definitions
Transactions are the total number of closed residential
transactions during the given month. Month's Supply of
Inventory is the total number of residential properties listed for
sale at the end of the month (current inventory) divided by the
number of sales contracts signed (pended) during the month.
Where "pended" data is unavailable, this calculation is made using
closed transactions. Days on Market is the number of days
that pass from the time a property is listed until the property
goes under contract for all residential properties sold during the
month. Median Sales Price is the median price of all
residential properties sold during the month.
MLS data is provided by contracted data aggregators, RE/MAX
brokerages and regional offices. While MLS data is believed
to be accurate, it cannot be guaranteed. MLS data is
constantly being updated, making any analysis a snapshot at a
particular time. Every month the RE/MAX National Housing
Report re-calculates the previous period's data to ensure accuracy
over time. All raw data remains the intellectual property of
each local MLS organization.
SOURCE RE/MAX, LLC