DENVER, Feb. 17, 2021 /PRNewswire/ -- Despite record
low inventory, January home sales posted a 13.5% increase over a
year ago. That followed four consecutive months of year-over-year
sales increases of 19% to 22% on the heels of pandemic
lockdowns.
January's year-over-year increase in homes sold represented a
sizable gain from the year before and was in line with the
pre-COVID months of December 2019
(13.5%) and January 2020 (10.5%).
"January home sales started the year off with a bang despite the
current shortage of homes for sale," said Adam Contos, CEO of RE/MAX Holdings, Inc.
"January's year-over-year sales increase wasn't as pronounced as
what we saw in the back half of 2020, but it was solid by any
objective measure – and it signals that 2021 could be an
historically good year for housing. Uncommonly low interest rates,
the ascent of the millennial homeowner and the prospect of working
from anywhere are converging to shape a housing market unlike any
other. We could see mortgage rates begin to inch up soon, so now
might be an ideal time for homebuyers and sellers to make their
move and take advantage of the favorable conditions."
Although the growth in sales moderated a bit, other key metrics
showed the aftereffects of housing's 2020 record-setting,
second-half recovery:
- January inventory dipped to the lowest level of any time in the
13-year history of the report. The 35.7% drop year over year was
also a report record and marked the fifth consecutive month of
year-over-year inventory declines over 30%.
- Months Supply of Inventory totaled 1.7 months and equaled the
report low set in July 2020 and then
tied in August and October.
- The Median Sales Price of $285,000 was a record for the month of January
and 11.8% higher than January 2020.
It was just 1.7% below the report record of $290,000 set in August
2020 and then tied in October and December.
- Days on Market averaged 40 – a January record and nearly three
weeks less than the 59 days of a year ago. The report record for
fewest average Days on Market is 36 days, set in November 2020.
Highlights and the local markets leading various metrics for
January 2021 include:
Closed Transactions
Of the 53 metro areas
surveyed in January 2021, the overall
average number of home sales is down 32.1% compared to December 2020, and up 13.5% compared to January
2020. Leading the year-over-year sales percentage increases
were San Francisco, CA at +38.5%,
Anchorage, AK at +31.7%, and
Wilmington/Dover, DE at +30.9%.
Median Sales Price – Median of 53 metro median
prices
In January 2021, the
median of all 53 metro Median Sales Prices was $285,000, down 1.7% from December 2020, and up +11.8% from January 2020. No metro area saw a year-over-year
decrease in Median Sales Price. Forty-five metro areas increased
year-over-year by double-digit percentages, led by Boise, ID at +24.3%, Pittsburgh, PA at +21.3%, and Indianapolis, IN at +20.5%.
Days on Market – Average of 53 metro areas
The average
Days on Market for homes sold in January
2021 was 40, up three days from the average in December 2020, and down 19 days from the average
in January 2020. The metro areas with
the lowest Days on Market were Omaha,
NE at 18, Boise, ID at 19,
and a two-way tie between Cincinnati,
OH and Nashville, TN at 21.
The highest Days on Market averages were in Des Moines, IA at 99, Miami, FL at 88, and Augusta, ME at 78. 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 January 2021 was down 12.1% from December 2020 and down 35.7% from January 2020. Based on the rate of home sales in
January 2021, the Months Supply of
Inventory decreased to 1.7 compared to 1.9 in December 2020, and decreased compared to 3.5 in
January 2020. A six months supply
indicates a market balanced equally between buyers and sellers. In
January 2021, of the 53 metro areas
surveyed, only one metro area, Indianapolis, IN at 9.8, 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 0.5,
and a four-way tie between Phoenix,
AZ, Denver, CO,
Seattle, WA, and Salt Lake City, UT at 0.6.
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 135,000 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.
RE/MAX was founded in 1973 by David and
Gail Liniger, with an innovative, entrepreneurial culture
affording its agents and franchisees the flexibility to operate
their businesses with great independence. 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.
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SOURCE RE/MAX, LLC