May Delivers 20% Increase in Homes Sales Ahead
of Peak Months
DENVER, June 16,
2023 /PRNewswire/ -- The latest national housing
report for May reveals a seasonal, 20% increase in home sales over
April, as well as an 8.7% uptick in new listings. While sales are
still down 18.7% from last May, solid demand amid tight inventory
helped push the median sales price up by 3.2%, month over month, to
$423,000.
Ahead of the peak home sales months of June and July, the report
shows a slight increase of 0.4% in inventory month over month, with
housing supply up by 9.7% compared to May
2022.
"The sizeable jump in May homes sales signals the start of the
peak selling season, but lack of inventory remains the biggest
challenge for home buyers," said Nick
Bailey, RE/MAX President & CEO. "With the vast majority
of homeowners having a mortgage rate under 5% – and a good chunk of
those are under 3.5% – we're not seeing as much move-up activity as
usual. That means fewer available listings for buyers to choose
from – and most likely some continuing bumpiness in the market.
That said, sales are still happening, and experienced agents are
still finding solutions for their buyers and sellers."
Seattle, Washington had the
largest decline in transactions year-over-year. According to
John Manning, managing broker of
RE/MAX Gateway in Seattle, with
the low interest rates many current homeowners have, they are in no
rush to sell. "The Seattle housing
market remains defined by healthy demand and ultra-low supply,"
says Manning. "The local economy is extremely strong and
well-represented in all the top industry sectors from fishing to
medical to technology. While home prices have been pressured by
higher mortgage interest rates, homeowners still see their homes as
an excellent long-term investment. Additionally, almost all
homeowners who purchased before 2022 benefit from historically low
interest rates. Combining strong long-term outlook with
low-interest mortgages, Seattle
homeowners have little incentive to sell their homes."
Other notable metrics:
- May's median sales price was the highest since June 2022, coming in at $3,000 less than that month's figure of
$426,000.
- New listings saw a nearly 10% gain over April but were still
down 20.4% compared to May 2022
levels.
- Months' Supply of Inventory in May was 1.2, down from 1.3 in
April but above the 1.1 recorded a year ago.
- The average close-to-list price ratio for May was 100%,
indicating that homes sold for the asking price on average. This is
an increase from April's 99% ratio and a decrease from the 103%
ratio recorded a year ago.
- Homes sold in May were on the market for an average of 31 days,
which is three days less than April but 10 days longer than the
same period last year.
Highlights and local market metrics for May include:
Of the 51 metro areas surveyed in May
2023, the number of newly listed homes is up 8.7% compared
to April 2023, and down 20.4%
compared to May 2022. Leading the
year-over-year new listings percentage increase were Kansas City, MO at +5.2%, Fayetteville, AR at +4.5%, and Des Moines, IA at +0.1%. The markets with the
biggest decrease in year-over-year new listings percentage were
Phoenix, AZ at -40.4%,
Las Vegas, NV at -35.8% and
Seattle, WA at -35.4%.
New Listings
Of the 51 metro areas surveyed in
May 2023, the number of newly listed
homes is up 8.7% compared to April
2023, and down 20.4% compared to May
2022. The markets with the biggest decrease in
year-over-year new listings percentage were Phoenix, AZ at -40.4%, Las Vegas, NV at -35.8% and Seattle, WA at -35.4%. Leading the
year-over-year new listings percentage increase were Kansas City, MO at +5.2%, Fayetteville, AR at +4.5%, and Des Moines, IA at +0.1%.
New Listings:
5 Markets with the Biggest YoY Decrease
|
Market
|
May 2023
New Listings
|
May 2022
New Listings
|
Year-over-
Year %
Change
|
Phoenix, AZ
|
7,007
|
11,752
|
-40.4 %
|
Las Vegas,
NV
|
3,424
|
5,335
|
-35.8 %
|
Seattle, WA
|
5,126
|
7,941
|
-35.4 %
|
San Diego,
CA
|
2,709
|
4,125
|
-34.3 %
|
San Francisco,
CA
|
3,691
|
5,258
|
-29.8 %
|
Closed Transactions
Of the 51 metro areas
surveyed in May 2023, the overall
number of home sales is up 20.0% compared to April 2023, and down 18.7% compared to
May 2022. The markets with the
biggest decrease in year-over-year sales percentage were
Seattle, WA at -33.9%,
Anchorage, AK at -32.5%, and
Portland, OR at -31.8%. Two metro
areas had a year-over-year sales percentage increase in May,
Bozeman, MT and Fayetteville, AR both at +3.1%.
Closed
Transactions:
5 Markets with the Biggest YoY Decrease
|
Market
|
May 2023
Transactions
|
May 2022
Transactions
|
Year-over-
Year %
Change
|
Seattle, WA
|
4,290
|
6,494
|
-33.9 %
|
Anchorage,
AK
|
444
|
658
|
-32.5 %
|
Portland, OR
|
2,595
|
3,806
|
-31.8 %
|
Honolulu, HI
|
712
|
1,021
|
-30.3 %
|
Salt Lake City,
UT
|
1,113
|
1,575
|
-29.3 %
|
Median Sales Price – Median of 51 metro area prices
In
May 2023, the median of all 51 metro
area sales prices was $423,000, up
3.2% compared to April 2023, and down
1.9% from May 2022. The markets with the biggest
year-over-year decrease in median sales price were San Francisco, CA at -10.7%, Las Vegas, NV at -10.0%, and Phoenix, AZ at -8.9%. The markets with the
biggest year-over-year increase in median sales price were
Hartford, CT at +11.0%,
Milwaukee, WI at +10.1%, and
Trenton, NJ at +8.9%.
Median Sales
Price:
5 Markets with the Biggest YoY Decrease
|
Market
|
May 2023
Median Sales
Price
|
May 2022
Median Sales
Price
|
Year-over-Year %
Change
|
San Francisco,
CA
|
$1,152,000
|
$1,290,000
|
-10.7 %
|
Las Vegas,
NV
|
$405,000
|
$450,000
|
-10.0 %
|
Phoenix, AZ
|
$437,500
|
$480,000
|
-8.9 %
|
Coeur d'Alene,
ID
|
$545,000
|
$592,500
|
-8.0 %
|
Seattle, WA
|
$700,000
|
$751,750
|
-6.9 %
|
Close-to-List Price Ratio – Average of 51 metro area
prices
In May 2023, the
average close-to-list price ratio of all 51 metro areas in the
report was 100%, up compared to 99% in April
2023, and down from 103% compared to May 2022. The close-to-list price ratio is
calculated by the average value of the sales price divided by the
list price for each transaction. When the number is above 100%, the
home closed for more than the list price. If it's less than 100%,
the home sold for less than the list price. The metro areas with
the lowest close-to-list price ratio were Miami, FL at 95%, followed by a tie between
Coeur d'Alene, ID and New Orleans,
LA at 97%. The highest close-to-list price ratios were
Hartford, CT at 105%, followed by
a three-way tie between Burlington,
VT, Manchester, NH, and
San Francisco, CA at 104%.
Close-to-List Price
Ratio:
5 Markets with the Biggest YoY Decrease
|
Market
|
May 2023
Close-to-List
Price Ratio
|
May 2022
Close-to-List
Price Ratio
|
Year-over-
Year
Difference
|
San Francisco,
CA
|
104.0 %
|
111.5 %
|
-7.5 pp
|
Dallas, TX
|
98.7 %
|
104.7 %
|
-5.9 pp
|
Raleigh, NC
|
100.2 %
|
105.6 %
|
-5.4 pp
|
Seattle, WA
|
100.8 %
|
106.2 %
|
-5.4 pp
|
Nashville,
TN
|
97.9 %
|
102.6 %
|
-4.7 pp
|
Days on Market – Average of 51 metro areas
The average days on market for homes sold in May 2023 was 31, down three days from the average
in April 2023, and up 10 days from
the average in May 2022. The metro
areas with the lowest days on market were a tie between
Manchester, NH and Washington, DC at 11, followed by another tie
between Baltimore, MD and
Trenton, NJ at 12. The highest
days on market averages were in Fayetteville, AR at 77, Miami, FL at 51, and Phoenix, AZ at 50. 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 Increase
|
Market
|
May 2023
Days on
Market
|
May 2022
Days on
Market
|
Year-over-
Year %
Change
|
Tampa, FL
|
42
|
13
|
+219.6 %
|
Orlando, FL
|
43
|
15
|
+193.3 %
|
Phoenix, AZ
|
50
|
21
|
+143.2 %
|
Dallas, TX
|
37
|
15
|
+141.8 %
|
Kansas City,
MO
|
38
|
16
|
+139.2 %
|
Months' Supply of Inventory – Average of 51 metro
areas
The number of homes for sale in May 2023 was up 0.4% from April 2023 and up 9.7% from May 2022. Based on the rate of home sales in
May 2023, the months' supply of
inventory was 1.2, down from 1.3 in April
2023, and increased from 1.1 in May
2022. In May 2023, the markets
with the lowest months' supply of inventory were Manchester, NH at 0.5, followed by a seven-way
tie between Albuquerque, NM,
Baltimore, MD, Charlotte, NC, Hartford, CT, Milwaukee, WI, Seattle, WA, and Washington, DC at 0.6. The markets with the
highest months' supply of inventory were Coeur d'Alene, ID at 2.7,
New Orleans, LA at 2.5, followed
by a two-way tie between Bozeman,
MT and Miami, FL at
2.4.
Months' Supply of
Inventory:
5 Markets with the Biggest YoY Increase
|
Market
|
May 2023
Months'
Supply of
Inventory
|
May 2022
Months'
Supply of
Inventory
|
Year-over-
Year %
Change
|
Boston, MA
|
2.3
|
0.7
|
+219.1 %
|
Raleigh, NC
|
1.2
|
0.6
|
+98.3 %
|
Nashville,
TN
|
1.4
|
0.7
|
+94.4 %
|
Omaha, NE
|
1.2
|
0.6
|
+91.4 %
|
Wichita, KS
|
1.0
|
0.6
|
+81.4 %
|
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 more than 140,000 agents in over 9,000
offices and a presence 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
Dave 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.
Report Details
The RE/MAX National Housing Report is
distributed monthly on or about the 15th. The Report is based on
MLS data for the stated month in 51 metropolitan areas, includes
single-family residential property types, and is not annualized.
For maximum representation, most of the largest metro areas in the
country are represented, and an attempt is made to include at least
one metro area in almost every state. Metro areas are defined by
the Core Based Statistical Areas (CBSAs) established by the U.S.
Office of Management and Budget.
Definitions
New Listings are the number of listings
that are initially listed for sale during the given month. Closed
Transactions are the total number of closed residential
transactions during the given month. Median Sales Price for a metro
area is the median sales price for closed transactions in that
metro area. The nationwide Median Sales Price is calculated at the
nationwide aggregate level using all sale prices from the included
metro areas. The Close-to-List Price Ratio is the average value of
the sales price divided by the list price for each closed
transaction. Days on Market is the average number of days that pass
from the time a property is listed until the property goes under
contract. 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
(pending listings) during the month. Where "pending" data is
unavailable, an inferred pending status is calculated using closed
transactions. Active Inventory is the total number of listings in
an active status as of the last day of the report month.
MLS data is provided by Seventy3, LLC, a RE/MAX Holdings
company. While MLS data is believed to be reliable, it cannot be
guaranteed. MLS data is constantly being updated, making any
analysis a snapshot at a particular time. Every month, the previous
period's data is updated to ensure accuracy over time. Raw data
remains the intellectual property of each local MLS
organization.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/remax-national-housing-report-for-may-2023-301852766.html
SOURCE RE/MAX, LLC