DENVER, Jan. 17, 2019 /PRNewswire/ -- December's
declining home sales and growing inventory solidified 2018 as the
year the red-hot seller's market moved toward a balanced market.
Price growth also moderated, though December was the 33rd
consecutive month of year-over-year increases in home prices,
according to the RE/MAX National Housing Report, which includes 53
metro areas.
December's year-over-year decline in home sales of 12.1% set a
December record in the 10-year history of the report and also
marked the fifth consecutive month that home sales were lower than
2017. December was 2018's 10th month of year-over-year
declines in home sales with only April and July topping 2017
sales.
Most telling was December's 4.6% growth in inventory, which was
also a report record. December's year-over-year inventory increase
marked the third consecutive month of growth – a trend reversing a
decade-long streak of year-over-year inventory declines.
"December's inventory gain, continuing the three-month growth
trend, is welcome news," said RE/MAX CEO Adam Contos. "The market remains choppy and
there's still a long way to go, but these gains represent steps
toward a balanced market, which in the long run is healthy for both
buyers and sellers."
While 54 Days on Market was a record low for December sold
listings, the 4.1 Months Supply of Inventory was higher than
December 2017's 3.7 months and ahead of November 2018's 3.9 months
supply.
Home buyers paid record amounts throughout 2018 as prices grew
year-over-year in every month last year, led by June's Median Sold
Price of $258,500 – an all-time
report high. Even so, December's year-over-year increase of 2.1%
was 2018's smallest, and far lower than the 8.1% price growth from
December 2016 to December 2017.
"Home sales have cooled, especially during the second half of
2018, but that was inevitable given the strong seller's market that
has persisted for nearly a decade," Contos said. "We believe sales
activity can pick back up if the pace of price escalation continues
to moderate, interest rates tick further downward, and wage growth
continues."
Closed Transactions
Of the 53 metro areas
surveyed in December 2018, the
overall average number of home sales is down -8.5% compared to
November 2018, and down -12.1%
compared to December 2017. None of
the 53 metro areas experienced an increase in sales
year-over-year.
Median Sales Price – Median of 53 metro median
prices
In December 2018, the
median of all 53 metro Median Sales Prices was $240,000, up 2.1% from November 2018, and up +2.1% from December 2017. Eight metro areas saw a
year-over-year decrease in Median Sales Price, including
Honolulu, HI, -7.7%, Birmingham, AL, -4.6%, and Billings, MT, -2.6%. Five metro areas
increased year-over-year by double-digit percentages, with the
largest increases seen in Boise,
ID, +13.1%, Wichita, KS,
+11.1%, and Salt Lake City, UT,
+10.3%.
Days on Market – Average of 53 metro areas
The average
Days on Market for homes sold in December
2018 was 54, up three days from the average in November 2018, and down three days from the
December 2017 average. The metro
areas with the lowest Days on Market were Omaha, NE, at 26, a tie at 37 in San Francisco, CA, and Salt Lake City, UT, and a tie at 38 in
Nashville, TN, and Las Vegas, NV. The highest Days on Market
averages were in Trenton, NJ, at
113, a tie at 90 in Augusta, ME,
and Hartford, CT, and Burlington, VT, at 88. 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 December 2018 was down -10.8% from November 2018 and up +4.6% from December 2017. Based on the rate of home sales in
December, the Months Supply of Inventory increased to 4.1 from 3.9
in November 2018, and increased
compared to December 2017 at 3.7. In
December 2018, four of the 53 metro
areas surveyed reported a months supply over six, including
Miami, FL, at 10.9 and
Augusta, ME, at 8.9, which is
typically considered a buyer's market. The markets with the lowest
Months Supply of Inventory are San
Francisco, CA, at 1.8, Denver,
CO, at 2.1, and Minneapolis,
MN, at 2.2.
For specific data in this report or to request an interview,
please contact newsroom@remax.com.
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RE/MAX launched Motto Mortgage, a ground-breaking mortgage
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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