DENVER, May 18, 2020 /PRNewswire/ -- Fewer sellers,
fewer buyers: The first full month of coronavirus stay-at-home
orders weighed on April home sales, causing them to drop an average
of 20.2% compared to a year ago. Inventory in the report's 53
markets similarly tumbled by 20.5% year-over-year, while the Median
Sale Price of $276,000 was up
9.3%.
Restrictions to prevent the spread of COVID-19 turned what is
traditionally the year's fifth busiest month for home sales back to
slumbering wintertime levels. Four markets – New York,
Detroit, Miami and San
Francisco – posted year-over-year sales declines of more
than 40%. Just two markets – Minneapolis,
MN and Billings, MT –
reported an increase, while eight saw declines of less than
10%.
"April results were better than many expected, as consumers
continued to buy and sell real estate in one of the most
challenging months for housing in memory," said Adam Contos, RE/MAX
CEO. "This was a headwind like no other – yet we still
saw activity across the country. Even in the markets that dropped
40% in sales, people wanted or needed to move, which says something
about resiliency and the power of homeownership."
Contos continued, "We believe the coronavirus and the measures
to slow it pushed the spring selling season back a bit. But we
believe buyer demand remains relatively strong despite the
pandemic, and sellers who pulled their listings in March or April
will hopefully come back into the market this summer. Others may
start the process after being stuck in a home that no longer suits
them. Both groups could help alleviate the inventory challenges
we've faced for quite some time. Moving forward, agents who've
adjusted their business strategies are positioned for success in
the more virtual environment."
Like March, April is a transition month toward peak home sales
in the summer. In a typical year, the busiest month is often May or
June, with July and August being close behind.
Days on Market dropped seven days to 46 year over year, setting
a new low for April in the report's 12-year history. By contrast,
Months Supply of Inventory grew from 3.0 to 3.5.
The Median Sales Price of $276,000
also was a report record for April.
Closed Transactions
Of the 53 metro areas surveyed in April
2020, the overall average number of home sales is down 13.7%
compared to March 2020, and down
20.2% compared to April 2019. Only two metro areas,
Billings, MT at +9.9% and
Minneapolis, MN +3.6%, saw a
year-over-year increase in Closed Transactions.
Median Sales Price – Median of 53 metro median
prices
In April 2020, the
median of all 53 metro Median Sales Prices was $276,000, up 4.2% from March 2020, and up 9.3% from April 2019. No metro areas saw a year-over-year
decrease in Median Sales Price. Eighteen metro areas increased
year-over-year by double-digit percentages, with the largest
increases seen in Manchester, NH
at +20.0%, Augusta, ME at +19.1%,
and Philadelphia, PA at
+16.9%.
Days on Market – Average of 53 metro areas
The average
Days on Market for homes sold in April
2020 was 46, down eight days from the average in
March 2020, and down seven days from
the average in April 2019. The metro
areas with the lowest Days on Market were Omaha, NE at 19, Seattle, WA at 20, and San Francisco, CA at 21. The highest Days on
Market averages were in Des Moines,
IA at 106, Augusta, ME at
95, and New York, NY 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 April 2020 was down 2.2% from March 2020 and down 18.2% from April 2019. Based on the rate of home sales in
April 2020, the Months Supply of
Inventory increased to 3.5 compared to 2.9 in March 2020, and increased compared to 3.0 in
April 2019. A six months supply
indicates a market balanced equally between buyers and sellers. In
April 2020, of the 53 metro areas
surveyed, five metro areas reported a months supply at or over six,
which is typically considered a buyer's market. The markets with
the lowest Months Supply of Inventory were Albuquerque, NM at 1.2, Omaha, NE at 1.3, and Manchester, NH at 1.4.
For specific data in this report or to request an interview,
please contact mediarelations@remax.com
About the RE/MAX Network
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real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX
Holdings (NYSE: RMAX) with over 130,000 agents in more than 110
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
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charities. To learn more about RE/MAX, to search home listings or
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visit news.remax.com.
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