July 2018 RE/MAX National Housing Report

Tuesday, August 21, 2018

by Elite Asset Management Team

Sales Increase Nearly 2%, Despite Record Prices, Sinking Inventory

DENVER – July home sales rose 1.8% year-over-year, making it the second month of 2018 to post a sales increase year-over-year, according to the RE/MAX National Housing Report.

In the July 2018 report, 37 of the report’s 54 metro areas posted sales increases over July 2017—April was the first month of 2018 where more homes were sold than the same month in 2017. The report also marks the 28th consecutive month of year-over-year price increases.

The Median Sales Price of $250,575 was up 4.4% from July 2017, and represents the third-highest price in report history—topped only by May and June of this year. Months Supply of Inventory was at 2.9 – the smallest total ever recorded for July.

Forty-two of the 54 metro areas reported a year-over-year drop in inventory. The Days on Market dropped to 41 – four days less than July 2017 and one day under the previous nine-year low set in June 2018.

“Because we’ve faced challenging inventories and increasing home prices for some time now, a seasonal slowdown that rebalances the market a bit might actually be a positive in the months ahead,” said RE/MAX CEO Adam Contos. “It could level affordability to some extent and create more opportunity for buyers who’ve been priced out of hot markets.”

Closed Transactions
Of the 54 metro areas surveyed in July 2018, the overall average number of home sales was down 8.7% compared to June 2018, yet increased 1.8% compared to July 2017. Thirty-seven of the 54 metro areas experienced an increase in sales year-over-year, including Billings, MT, +27.4%, Tulsa, OK, +13.2%, Richmond, VA, +12.9% and Pittsburgh, PA, +11%.

Median Sales Price – Median of 54 metro median prices
In July 2018, the median of all 54 metro Median Sales Prices was $250,575, down 3.1% from June 2018 and up 4.4% from July 2017. Only four metro areas saw a year-over-year decrease in Median Sales Price, including Wilmington/Dover, DE, -2.2% and Trenton, NJ, -0.7%. Four metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Boise, ID, +18.8%, Omaha, NE, +12.7%, San Francisco, CA, +12.6% and Salt Lake City, UT, +12.4%.

Days on Market – Average of 54 metro areas
The average Days on Market for homes sold in July 2018 was 41, down one day from the average in June 2018, and down 4 days from the July 2017 average. The metro areas with the lowest Days on Market were Seattle, WA, at 19, Omaha, NE, at 20, and Denver, CO and San Francisco, CA tied at 22. The highest Days on Market averages were in Augusta, ME, at 89, Miami, FL, at 83, Hartford, CT at 76 and New York, NY, at 65. 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 54 metro areas
The number of homes for sale in July 2018 was down 0.3% from June 2018, and down 7.8% from July 2017. Based on the rate of home sales in July, the Months Supply of Inventory increased to 2.9 from 2.7 in June 2018, and decreased from 3.1 in July 2017. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In July 2018, all but one of 54 metro areas surveyed reported a months supply at or less than 6.0, which is typically considered a seller’s market. The markets with the lowest Months Supply of Inventory are San Francisco, CA, and Boise, ID, tied at 1.4, Denver, CO, at 1.5 and Salt Lake City, UT, at 1.6.

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood. And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker,CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com