DENVER, Nov. 18, 2021 /PRNewswire/ -- Pinched
between a steep median sales price of $336,000 and record low inventory, October home
sales tumbled 6.4% from September – almost double the typical
seasonal decline. September had near-record sales, which also
contributed to the steepness of the month-over-month sales
decrease.
October's inventory dropped 12.7% from September to the
fifth-lowest level in the report's 14-year history, and October's
1.3 Months Supply of Inventory tied for second lowest in report
history, alongside July and August of this year.
"We're seeing the effects of a long, sustained run-up in prices
and month-over-month home sales and the market may be moving past
the days of immediate sales, multiple offers and bidding wars on
virtually every property," said Nick
Bailey, President, RE/MAX, LLC. "That's OK. The October dip
in sales, especially after such a busy September, is a step toward
a more balanced market and was somewhat overdue.
"Home buyers may see some relief in price appreciation during
the coming months, even as sales levels stay high. Sellers remain
in a very strong position, but with price stabilization and the
continuation of competitive interest rates, buyers may find the
coming months to be more advantageous than anytime earlier this
year."
September-to-October averages for 2015-2019 illustrate what's
typical in the fall. With just two months of home sales remaining,
the fall of 2021 is mirroring seasonal norms in many ways, unlike
2020, but the lack of inventory amid strong demand is exacerbating
those moves. For example, the drop in home sales of 6.4% from
September was nearly twice the 2015-2019 average decline of 3.3%.
Year over year, sales were down 10.2%.
Also, reflecting both the number of homes coming on the market
and the speed of sales, the 12.7% month-over-month drop in active
inventory was more than double the 2015-2019 September-to-October
average decline of 5.3%. Inventory was down 28% year-over-year and
has declined month over month in all but June and July this
year.
One exception is the Median Sales Price, which rose 0.8% from
September, in contrast to the average September-to-October drop of
1.3% in 2015-2019. The Median Sales Price is up 11.8% over
October 2020. October's Median Sales
Price of $336,000 tied the record set
in June 2021. Home prices have now
increased year over year for 34 consecutive months.
Highlights and the local markets leading various metrics for
October include:
Closed Transactions
Of the 51 metro areas surveyed in October
2021, the overall average number of home sales is down 6.4%
compared to September 2021, and down
10.2% compared to October 2020. The
markets with the biggest decrease in year-over-year sales
percentage were Birmingham, AL at
-32.1%, Billings, MT at -30.0%,
and Providence, RI at
-21.5%. Leading the year-over-year sales percentage
increase were Honolulu, HI at
+16.7% and Wilmington/Dover, DE at +1.4.
Closed
Transactions:
5 Markets with the Biggest YoY Decrease
|
Market
|
Oct 2021
Transactions
|
Oct 2020
Transactions
|
Year-over-
Year %
Change
|
Birmingham,
AL
|
1,431
|
2,108
|
-32.1%
|
Billings,
MT
|
250
|
357
|
-30.0%
|
Providence,
RI
|
1,198
|
1,526
|
-21.5%
|
Boston, MA
|
4,059
|
4,955
|
-18.1%
|
Wichita,
KS
|
912
|
1,101
|
-17.2%
|
Median Sales Price – Median of 51 metro median prices
In October 2021, the median of all 51
metro Median Sales Prices was $336,000, up 0.8% compared to September 2021, and up 11.8% from October 2020. No metro areas saw a year-over-year
decrease in Median Sales Price. Thirty metro areas increased
year-over-year by double-digit percentages, led by Boise, ID at +29.6%, Phoenix, AZ at +25.4%, and Salt Lake City, UT at +23.4.
Median Sales
Price:
5 Markets with the Biggest YoY Increase
|
Market
|
Oct 2021
Median Sales
Price
|
Oct 2020
Median Sales
Price
|
Year-over-
Year %
Change
|
Boise, ID
|
$479,900
|
$370,423
|
+29.6%
|
Phoenix,
AZ
|
$420,000
|
$335,000
|
+25.4%
|
Salt Lake City,
UT
|
$475,000
|
$385,000
|
+23.4%
|
Raleigh-Durham,
NC
|
$381,250
|
$310,000
|
+23.0%
|
Tampa, FL
|
$317,048
|
$260,000
|
+21.9%
|
Days on Market – Average of 51 metro areas
The average
Days on Market for homes sold in October
2021 was 27, up one day from the average in September 2021, and down 11 days from the average
in October 2020. The metro areas with
the lowest Days on Market were Nashville,
TN at 11, Omaha, NE at 13,
and Cincinnati, OH at 14. The
highest Days on Market averages were in Des Moines, IA at 84, Miami, FL at 75, and New York, NY at 63. Days on Market is the
number of days between when a home is first listed in an MLS and a
sales contract is signed.
Days on
Market:
5 Markets with the Biggest YoY Decrease
|
Market
|
Oct 2021
Days on
Market
|
Oct 2020
Days on
Market
|
Year-over-
Year %
Change
|
Raleigh-Durham,
NC
|
17
|
36
|
-52.8%
|
Nashville,
TN
|
11
|
21
|
-46.4%
|
Birmingham,
AL
|
17
|
32
|
-46.3%
|
Orlando,
FL
|
27
|
50
|
-46.0%
|
Tampa, FL
|
23
|
42
|
-45.2%
|
Months Supply of Inventory – Average of 51 metro
areas
The number of homes for sale in October 2021 was down 12.7% from September 2021 and down 28.0% from October 2020. Based on the rate of home sales in
October 2021, the Months Supply of
Inventory decreased to 1.3 compared to 1.5 in September 2021, and decreased compared to 1.9 in
October 2020. A six months supply
indicates a market balanced equally between buyers and sellers. In
October 2021, of the 51 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 three-way tie between
Albuquerque, NM, Raleigh-Durham, NC, and Seattle, WA at 0.6.
Months Supply of
Inventory:
5 Markets with the Biggest YoY Decrease
|
Market
|
Oct 2021
Months
Supply of
Inventory
|
Oct 2020
Months
Supply of
Inventory
|
Year-over-
Year %
Change
|
Albuquerque,
NM
|
0.6
|
1.9
|
-68.4%
|
Hartford,
CT
|
0.8
|
2.5
|
-68.0%
|
Miami, FL
|
2.0
|
6.1
|
-67.2%
|
Providence,
RI
|
1.1
|
2.8
|
-60.7%
|
Orlando,
FL
|
0.9
|
2.1
|
-57.1%
|
To request an interview, please contact
mediarelations@remax.com.
About the RE/MAX Network
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offices across more than 110 countries and territories. Nobody in
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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 51 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