DENVER, Nov. 19, 2018 /PRNewswire/ -- The third
consecutive month of lower year-over-year home sales in October
contributed to the first year-over-year inventory increase in a
decade according to the RE/MAX National Housing Report for
October 2018. Meanwhile, the Median
Sales Price recorded one of its lowest increases of 2018.
The RE/MAX National Housing Report for October saw sales decline
4.6% from a year ago – compared to sales drops of 11.6% in
September and 1.1% in August – and was the eighth month of 2018 to
record lower sales than 2017.
As a result, inventory is slowly being replenished, with the
number of homes for sale in October increasing 1.0% over
October 2017. October 2018 was the first month to show a
year-over-year increase in inventory since October 2008 when two and a half times as many
homes were for sale. The Months Supply of Inventory is now 3.5,
compared to 3.3 a year ago.
"The market continues to move toward equilibrium. The modest
inventory increase is a much welcome sign for buyers," said RE/MAX
CEO Adam Contos. "Although home
sales were down year-over-year, it's encouraging to see the
magnitude of the decline decrease from the sharp drop we witnessed
in September. The trend of easing price increases remains and
that's also a positive."
October's Median Sales Price of $236,000 marked the 31st consecutive month of
year-over-year price increases and was the highest October price in
the 10-year history of the report. Even so, the 4.9% gain was the
third-lowest year-over-year growth of 2018.
Days on Market of 48 was an October record for fewest days and
compares to 51 days in October
2017.
"The imbalance that has defined this market for so long
continues to moderate," said Contos. "However, it will take some
time to recalibrate. Rising prices and interest rates and tight
inventory levels continue. Buyer and seller expectations still
appear to be a bit mismatched suggesting a choppy market remains in
place."
Closed Transactions
Of the 53 metro areas surveyed in October
2018, the overall average number of home sales is up 4.3%
compared to September 2018, and down
4.6% compared to October 2017.
Fourteen of the 53 metro areas experienced an increase in sales
year-over-year including, Birmingham,
AL, +15.1%, Tampa, FL,
+11.0%, Trenton, NJ, +10.5% and
Orlando, FL at +9.8%.
Median Sales Price – Median of 53 metro median
prices
In October 2018, the
median of all 53 metro Median Sales Prices was $236,000, down 1.3% from September 2018 and
up 4.9% from October 2017. Only five
metro areas saw a year-over-year decrease in Median Sales Price
including Honolulu, HI, -7.4%,
Anchorage, AK, -6.9%, Birmingham, AL, -6.3%, and Des Moines, IA, -3.3%. Five metro areas
increased year-over-year by double-digit percentages, with the
largest increases seen in Boise,
ID, +18.0%, Omaha, NE,
+11.8%, San Francisco, CA, +10.8%
and Richmond, VA,
+10.3%.
Days on Market – Average of 53 metro areas
The average
Days on Market for homes sold in October
2018 was 48, up two days from the average in September 2018, and down 3 days from the
October 2017 average. The metro areas
with the lowest Days on Market were Omaha, NE, at 21, San Francisco, CA, at 28, Wichita, KS, at 30, and a four-way tie at 31
in Indianapolis, IN, Cincinnati, OH, Nashville, TN and Boise, ID. The highest Days on Market averages
were in Hartford, CT, at 87,
Augusta, ME, and Miami, FL, at 84 and New York, NY, at 74. 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 53 metro
areas
The number of homes for sale in October 2018 was down 2.6% from September 2018 and up 1.0% from October 2017. Based on the rate of home sales in
October, the Months Supply of Inventory decreased to 3.5 from 3.7
in September 2018, and increased
compared to October 2017 at 3.3. A
6.0-months supply indicates a market balanced equally between
buyers and sellers. In October 2018,
all but Miami, FL, at 7.5, of 53
metro areas surveyed 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 with San Francisco, CA, at 1.7, Boise, ID, at 1.9, Denver, CO, at 2.0, Manchester, NH, at 2.1 and a three-way tie at
2.3 in Minneapolis, MN,
Boston, MA and Raleigh-Durham, NC.
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