DENVER, Feb. 18, 2019 /PRNewswire/ -- A sixth
consecutive month of declining home sales in January contributed to
the largest year-over-year inventory increase in at least 10 years,
according to the RE/MAX National Housing Report.
While year-over-year home sales dropped 11% – extending a streak
that began in August – inventory grew year-over-year by an average
of 6.4% across the report's 54 U.S. metro areas. January marked the
fourth consecutive month of year-over-year inventory growth –
further reversing a decade-long trend of shrinking inventory.
December 2018's year-over-year inventory growth of 4.7% was the
previous record in the report's 10-year history.
"The winter chill extended to the housing market in January, as
home sales remained cool," said RE/MAX CEO Adam Contos. "The good news is that inventory
levels in January continued to rise on a year-over-year basis,
providing incremental improvement in what's been a multi-year
shortage of for-sale homes. This is a positive for homebuyers, as
the market continues to swing their way."
The median sales price of $234,000
was a report record for January, increasing 4.6% over January 2018. But the rate of sales price
increase was considerably less than the 6.7% posted from
January 2017 to January 2018. December
2018 was the only month since January
2012 to show a year-over-year decline in median sales
price.
Fifty-nine days on market was a record low for January sold
listings – averaging one day less than the 60 posted in
January 2018. January's 3.9-month
supply of inventory was higher than the 3.4-month supply of
January 2018.
"Underlying demand remains solid overall, as evidenced by
widespread price increases," said Contos. "So the housing market,
while not markedly busy in January, remains relatively healthy.
Furthermore, with interest rates stabilizing and home-price
increases slowing, the spring selling season shapes up to be as
interesting as any we have seen in years."
Closed Transactions
Of the 54 metro areas surveyed in January
2019, the overall average number of home sales was down
26.1% compared to December 2018, and
down 11.0% compared to January 2018.
Only Billings, MT, experienced an
increase in sales year-over-year, at +7.1%.
Median Sales Price – Median of 54 metro median prices
In January 2019, the median of all 54
metro Median Sales Prices was $234,000, down 2.5% from December 2018, and up 4.6% from January 2018. Four metro areas saw a
year-over-year decrease in Median Sales Price, including
Anchorage, AK, at -3.9%,
Pittsburgh, PA, at -2.0%,
Trenton, NJ, at -1.5%, and
Birmingham, AL, at -0.5%. Six
metro areas increased year-over-year by double-digit percentages,
with the largest increases seen in Augusta, ME, at +12.1%, Las Vegas, NV, at +11.2%, and Wichita, KS at +10.5%.
Days on Market – Average of 54 metro areas
The
average Days on Market for homes sold in January 2019 was 59, up four days from the
average in December 2018, and down
one day from the January 2018
average. The metro areas with the lowest Days on Market were
Omaha, NE, at 32, Nashville, TN, at 41, and a three-way tie
between Las Vegas, NV,
Cincinnati, OH, and San Francisco, CA, at 43. The highest Days on
Market averages were in Augusta,
ME, at 100, Hartford, CT,
at 94, and Anchorage, AK at 93.
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 January 2019 was down 2.6% from December 2018 and up 6.4% from January 2018. Based on the rate of home sales in
January, the Months Supply of Inventory decreased to 3.9 from 4.1
in December 2018, and increased
compared to 3.4 in January 2018. A
six-months supply indicates a market balanced equally between
buyers and sellers. In January 2019,
nine of the 54 metro areas surveyed reported a supply at or over
six months, typically indicating a buyer's market, including
Miami, FL, at 9.0 and Indianapolis, IN, at 8.6. Nine markets shared
the lowest Months Supply of Inventory at 2.0.
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 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