DENVER, Aug. 19, 2020 /PRNewswire/ -- In a
significant upward shift, July home sales rose 8.7% over
July 2019, halting a streak of
year-over-year sales declines triggered by the COVID-19 pandemic.
July's market was blistering hot despite the lowest Months Supply
of Inventory (1.7 months) in the 12-year history of the report.
July set a report record for most home sales in any month among
the report's 53 metro markets. Seven months into 2020, home sales
are just 4.8% below 2019, compared to the end of May when the
year-to-date total was 8.9% behind last year's pace. Surprisingly,
2020 monthly sales have exceeded 2019 in four out of seven months
thus far.
"The sharp gain in home sales in July – which was the best month
of home sales in our report's history – is further evidence of
housing's remarkable recovery amidst the pandemic," said
Adam Contos, RE/MAX Holdings CEO.
"Home sales typically peak in May or June, but this year we're
seeing an overlap of the spring and summer markets. And, as strong
as July was, sales may have been even higher if inventory hadn't
been so tight."
Continued Contos: "Buyers have returned to the market more
quickly than sellers, likely spurred on by historically low
interest rates and coronavirus-inspired lifestyle changes. Home is
the center of life in 2020, and the pandemic has caused people to
reconsider their living situations – especially with so many people
working from home. So far, buyers have shown they are willing to
pay steadily increasing prices, so the months ahead could be very
active, especially if more homeowners decide to jump in and
sell."
Finding a home to buy remains the biggest challenge for many.
July inventory dropped 30.1% from July
2019, a report record, and was the ninth consecutive month
of double-digit declines year over year. The only three months with
lower inventory totals were two winters ago: December 2017 and January and February 2018.
July's 1.7 Months of Inventory marked only the second month in
report history with below 2 months supply. Even with year-over-year
declines factored in, housing inventory is typically at its highest
during the summer months.
July's Median Sales Price of $285,000 is up 8.6% year-over-year. This is in
line with pre-pandemic rises in price after smaller year-over-year
price increases of 4.7% and 1.9% in May and June, respectively.
Days on Market averaged 44, an increase from 43 the previous
July.
Closed Transactions
Of the 53 metro areas
surveyed in July 2020, the overall
average number of home sales is up 18.6% compared to June 2020, and up 8.7% compared to July
2019. Leading the year-over-year sales percentage increase
were Pittsburgh, PA at +25.9%,
Des Moines, IA at +25.2%, and
Denver, CO at +22.3%.
Median Sales Price – Median of 53 metro median
prices
In July 2020, the
median of all 53 metro Median Sales Prices was $285,000, up 3.4% from June 2020, and up 8.6% from July 2019. Only one metro area, Honolulu, HI at -4.0%, saw a year-over-year
decrease in Median Sales Price. Twenty-two metro areas increased
year-over-year by double-digit percentages, led by Birmingham, AL at +17.1%, Augusta, ME at +14.1%, and Indianapolis, IN at +14.0%.
Days on Market – Average of 53 metro areas
The average
Days on Market for homes sold in July
2020 was 44, down one day from the average in June 2020, and up one day from the average in
July 2019. The metro areas with the
lowest Days on Market were Omaha,
NE at 20, Cincinnati, OH at
24, and Seattle, WA at 25. The
highest Days on Market averages were in Des Moines, IA at 94, Augusta, ME at 91, and Miami, FL at 90. 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 July 2020 was down 6.2% from June 2020 and down 30.1% from July 2019. Based on the rate of home sales in
July 2020, the Months Supply of
Inventory decreased to 1.7 compared to 2.1 in June 2020 and decreased compared to 3.2 in
July 2019. A six months supply
indicates a market balanced equally between buyers and sellers. In
July 2020, of the 53 metro areas
surveyed, zero 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 a two-way tie between
Albuquerque, NM and Boise, ID at 0.7, and a four-way tie among
Hartford, CT, Phoenix, AZ, Manchester, NH, and Washington DC at 0.9.
For specific data in this report or to request an interview,
please contact mediarelations@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 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
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 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/remax-national-housing-report-for-july-2020-301114553.html
SOURCE RE/MAX, LLC