DENVER, Oct. 16, 2018 /PRNewswire/ -- The
RE/MAX National Housing Report for
September 2018 showed the trends of
fewer closings and stabilizing inventory continued through
September, punctuated by a surprisingly big 11.6% year-over-year
drop in home sales. At the same time, the RE/MAX National Housing
Report for September 2018 posted a
Median Sales Price of $241,000 that
marked the 30th consecutive month of year-over-year price
increases. It is the highest September price in the 10-year history
of the report. To access the housing report
infographic, visit:
https://rem.ax/2phKHWT.
The decline in home sales year-over-year was the largest
since May of 2011, as September became the seventh month of 2018 to
record lower sales than 2017. Even so, year-to-date 2018 home sales
resemble 2017's.
"The big drop in September closings catches your
attention. The market is clearly rebalancing as buyers and sellers
continue to process the increasing interest rate environment and
what that means to them," said RE/MAX CEO Adam Contos. "The slower drop in inventory – a
visible trend for nearly half a year – further illustrates the
ongoing shift toward market equilibrium, and that's healthy in the
long-term."
Active inventory dropped for the 119th consecutive month, the
decline of 4.7% from September 2017
was the smallest year-over-year decrease since August 2014. In addition, the September
year-over-year inventory drop was the fifth consecutive month in
2018 to post single-digit percent declines rather than the
double-digit monthly drops consistently seen over the previous
three years.
"It's a little surprising to see prices staying so strong,
but it's hardly shocking in such a tight market," said Contos. "The
headwinds of rising prices and interest rates amid already tight
inventory levels have been crimping affordability and slowing sales
for most of the year, but it varies by geography. In
circumstances like these, where the market is tricky to navigate,
both buyers and sellers can benefit by aligning themselves with a
professional agent – a local expert who can cut through the noise
and advocate on their behalf."
Other highlights include:
- Home prices rose by 5.6% over September 2017, more than twice the
year-over-year price increase of 2.3% from September 2016 to September 2017. That reversed a trend seen in the
previous three months, when year-over-year price increases trailed
2017's rate of growth.
- Months Supply of Inventory totaled 3.7, which is the
second-lowest for September in report history, second only to 3.6
months in September 2017.
- Days on Market of 46 was a September record for the
report – three days less than September
2017.
Closed Transactions
Of the 54
metro areas surveyed in September
2018, the overall average number of home sales is down 1.1%
compared to August 2018, and down
11.6% compared to September 2017. Six
of the 54 metro areas experienced an increase in sales
year-over-year, including Orlando,
FL, +17.2%, Tampa, FL,
+8.5, Miami, FL, +6.8% and
Birmingham, AL at
+4.0%.
Median Sales Price – Median of 54 metro median
prices
In September
2018, the median of all 54 metro Median Sales Prices was
$241,000, down 3.2% from August
2018 and up 5.6% from September 2017.
Only three metro areas saw a year-over-year decrease in Median
Sales Price; Birmingham, AL,
-2.1%, Anchorage, AK, -2.0% and
Honolulu, HI, -1.7%. Seven metro
areas increased year-over-year by double-digit percentages, with
the largest increases seen in Boise,
ID, +17.9%, Manchester, NH,
+13.4% and Salt Lake City, UT,
+11.9%.
Days on Market – Average of 54 metro
areas
The average Days on Market for homes sold
in September 2018 was 46, up three
days from the average in August 2018,
and down 3 days from the September
2017 average. The metro areas with the lowest Days on Market
were Omaha, NE, at 19,
San Francisco, CA, at 26,
Seattle, WA, at 27, and five
markets tied at 29 –Denver, CO, Cincinnati, OH, Indianapolis, IN, Las Vegas, NV, and Salt Lake City, UT. The highest Days on Market
averages were in Augusta, ME, at
90, Burlington, VT, at 87,
Hartford, CT at 81 and
Miami, FL, at 79. 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
September 2018 was down 1.0% from
August 2018 and down 4.7% from
September 2017. Based on the rate of
home sales in September, the Months Supply of Inventory increased
to 3.7 from 3.0 in August 2018, and
increased compared to September 2017
at 3.6. A 6.0-months supply indicates a market balanced equally
between buyers and sellers. In September
2018, all but two of the metro areas surveyed – Miami, FL, at 8.0 and New York, NY, at 6.0 – reported a months
supply less than 6.0, which is typically considered a seller's
market. The markets with the lowest Months Supply of Inventory are
San Francisco, CA, at 1.9,
Boise, ID, and Denver, CO, at 2.0 and Manchester, NH and Omaha, NE, tied at
2.3.
For specific data in this report or to request an
interview, please contact newsroom@remax.com.
About the RE/MAX Network
As one of
the leading global real estate franchisors, RE/MAX, LLC is a
subsidiary of RE/MAX Holdings (NYSE: RMAX) with over 120,000 agents
in more than 100 countries and territories. Nobody in the world
sells more real estate than RE/MAX, as measured by residential
transaction sides. Dedicated to innovation and change in the real
estate industry, RE/MAX launched Motto Mortgage, a ground-breaking
mortgage franchisor, in 2016 and acquired booj, a real estate
technology company, in 2018. RE/MAX agents have lived, worked and
served in their local communities for decades, raising millions of
dollars every year for Children's Miracle Network Hospitals® and
other charities. To learn more about RE/MAX, to search home
listings or find an agent in your community, please visit
www.remax.com. For the latest news about RE/MAX, please
visit www.remax.com/newsroom.
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 54
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