DENVER, Dec. 15, 2017 /PRNewswire/ -- November
became the sixth month of 2017 to post an increase in
year-over-year home sales, bucking prolonged trends of home price
increases and inventory declines, according to the December RE/MAX
National Housing Report. To access the housing report infographic,
visit: rem.ax/2cYFT50.
The sales increase of 1.1% came on the strength of
increased transaction closings in 36 of the report's 54
markets. At the same time, buyers felt increasing
headwinds as the Median Sales Price rose to
$227,500 and marked
the 20th consecutive month of year-over-year
home price increases. In fact, the Median Sales Price has increased
year-over-year in 69 of the last 70 months dating back to
February 2012.
November's inventory decline of 14.5% extended the streak of
consecutive months of fewer homes on the market to 108. The current
streak started nine years ago, in November
2008, shortly after the RE/MAX National Housing Report was
introduced.
Setting new report lows for November were Days on Market at
54 and Months Supply of Inventory at 3.6.
"The end of the year is typically a slower selling season with
low inventory, but our numbers are telling a different story," said
Adam Contos, RE/MAX Co-CEO. "We
don't see any sign of home buyers slowing down their house hunting.
In fact, many are taking advantage of lower competition for
available homes in the 'slow season.'"
Contos added that, while consumer confidence is up and
unemployment remains low, new home starts continue to lag because
of material costs and a labor shortage. "Until we begin to see new
homes being built, we won't see much growth in available homes on
the market," he said.
Closed Transactions
Of the 54 metro areas
surveyed in November 2017, the
overall average number of home sales decreased 7.3% compared to
October 2017 but increased 1.1%
compared to November 2016. Thirty-six
of the 54 metro areas experienced an increase in sales
year-over-year, including Trenton,
NJ, +21.3%, Augusta, ME,
+14.5%, Honolulu, HI, +14.1%, and
Manchester, NH, +14.0%.
Median Sales Price – Median of 54 metro median
prices
In November 2017, the
median of all 54 metro Median Sales Prices was $227,500, up 1.7% from October 2017 and up
3.7% from November 2016. Only five
metro areas saw a year-over-year decrease in Median Sales Price,
including Anchorage, AK, -5.3%,
Trenton, NJ, -4.2%, and
Honolulu, HI, -3.4%. Nine metro
areas increased year-over-year by double-digit percentages, with
the largest increases seen in San
Francisco, CA, +13.8%, Cleveland,
OH, +12.9%, Orlando, FL,
+11.6%, and Seattle, WA,
+11.4%.
Days on Market – Average of 54 metro areas
The average
Days on Market for homes sold in November
2017 was 54, up three days from the average in October 2017, and down five days from the
November 2016 average. The four metro
areas with the lowest Days on Market were San Francisco, CA, at 25, Omaha, NE, at 27, Seattle, WA, at 29, and Nashville, TN, at 30. The highest Days on
Market averages were in Augusta,
ME, at 116, and Miami, FL,
at 86. Days on Market is the number of days between when a home is
first listed in an MLS and a sales contract is signed.
Months Supply of Inventory – Average of 54 metro
areas
The number of homes for sale in November 2017 was down 9.2% from October 2017, and down 14.5% from November 2016. Based on the rate of home sales in
November, the Months Supply of Inventory increased to 3.6 from 3.3
in October 2017, but decreased
compared to the 4.0 of November 2016.
A 6 months supply indicates a market balanced equally between
buyers and sellers. In November 2017,
49 of the 54 metro areas surveyed reported a months supply at or
less than 6, which is typically considered a seller's market. The
metro areas that saw a months supply above 6.0, typically
considered a buyer's market, were Augusta, ME, at 8.4, Miami, FL, at 7.6, and Fargo, ND, at 6.5. The markets with the lowest
Months Supply of Inventory continued to be in the West, with
San Francisco, CA, at 1.0,
Seattle, WA, at 1.3, and
Denver, CO, at 1.4.
Contact
For specific data in this report or to request
an interview, please contact newsroom@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 53 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. Months
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 of the
median sales prices in each of the metro areas included in the
survey.
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.
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SOURCE RE/MAX, LLC