DENVER, Dec. 18, 2013 /PRNewswire/ -- After 28
months of year-over-year increases in home sales, November saw a
7.8% drop. The housing market appears to be making expected
seasonal adjustments, as the recovery is simultaneously impacted by
a combination of factors - rising interest rates, the government
shutdown, mortgage qualification difficulties, severe weather and
seasonality. Mostly due to a still tight supply of homes for sale,
the November median home price of $187,000 rose 13.7% over the price in
November 2012. With the current rate
of home sales, the number of months necessary to sell the entire
inventory, or the Months Supply, inched higher to 5.4 months, very
close to the 6.0 supply that defines a market balanced equally
between buyers and sellers. The national inventory situation
continues to move in the right direction. The current 12.9% drop in
inventory from November 2012 is less
than half the annual inventory loss seen in April of this year.
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"In a month when we normally expect home sales to slow down,
this November we've seen more than seasonality at play. While
the fundamentals for a housing recovery remain in place, the market
never moves in a straight line. Along the way, we should
expect some fluctuations resulting from a number of different
factors," said Margaret Kelly,
RE/MAX CEO.
Transactions – Year-Over-Year Change
The November
RE/MAX National Housing Report, a survey of MLS data in 52 metro
areas, found a 15.9% monthly decrease in sales, and a 7.8% decrease
from sales in November last year. A number of unrelated factors
contributed to the change in direction, which broke a 28
consecutive month increase in year-over-year home sales. Of all 52
metro areas surveyed in November, only 9 reported higher sales than
in November 2012, including:
New York, NY +25.8%, Raleigh and Durham,
NC +10.2%, Nashville, TN
+4.0%, Tulsa, OK +3.4%,
Cleveland, OH +3.4%, Honolulu, HI +2.6%, and Chicago, IL +0.4%.
Median Sales Price
The Median Price of all homes sold
in November was $187,000. This price
represents a 3.9% increase from October and a 13.7% rise from
November 2012. The Median Price of a
home has been greater than in the same month of the previous year
for 22 consecutive months. Although home prices are significantly
higher than one year ago, increases are mostly the result of low
inventory and high demand. Of the 52 metro areas surveyed in
November, 43 reported higher sales prices than one year ago. Of
those, 16 metro areas reported double-digit increases, including:
Las Vegas, NV +28.6%, Atlanta, GA +27.2%, Fargo, ND +24.9%, San Francisco, CA + 21.4% and Orlando, FL +20.4%.
Days on Market – Average of 52 Metro Areas
For all
homes sold in the 52 markets surveyed in November, the average
number of Days on Market was 68. This is just two days higher than
the average seen in October, but is 14 days lower than the average
seen in November 2012. November marks the 18th
consecutive month with an average Days on Market below 90. A low
Days on Market average, like November's 68, 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
A low inventory environment has characterized the
housing market for several months. However, recent year-over-year
inventory losses are significantly less than what was reported
earlier this year or in 2012. With a 12.9% drop in inventory from
last year, November's resulting Months Supply of homes for sale
rose slightly to 5.4. Extremely low Months Supply remains in some
key markets, such as: San Francisco,
CA 1.3, Denver, CO 2.2,
Los Angeles, CA 2.7, Honolulu, HI 3.1, Washington, DC 3.1, Seattle, WA 3.2 and San Diego, CA 3.3.
Contact
For specific data in this report or to request
an interview, please contact (303) 796-3405 or
shaunwhite@remax.com.
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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