RE/MAX: Home Sales Continue to Break Records

Posted by Michael Bates on July 17, 2017 No Comments
Categories : Residential Mortgage

According to the July 2017 RE/MAX National Housing Report, June 2017 home sales were 1.4% higher than in June 2016, which was previously the month with the most home sales in the nine-year history of the report. Additionally, four of the last six months have topped same-month sales from 2016, RE/MAX notes.

“Sellers continue to benefit from limited inventory, getting top-dollar for their homes, and as a result, overall sales are at a record high,” says Adam Contos, co-CEO of RE/MAX. “But buyers shouldn’t be discouraged. Mortgage rates are still relatively low, and the market may be taking a positive turn, albeit subtle, as recent Labor Department data showed a decline in open construction jobs, which could mean more workers focused on new home builds.”

A combination of increased sales and a record-low inventory (which slipped further to 2.8 months) has resulted in higher sales prices. June’s median sales price of $245,000, up 7.5% over last June, also set a RE/MAX National Housing report record. In fact, prices increased in 50 of the report’s 53 markets.

The average number of days on market dropped to a report-record low of 47, while inventory dropped year-over-year in 87% of the markets. Decreasing 15.2% from June 2016, inventory continued to decline year-over-year. This is the 104th consecutive month of year-over-year declines, dating back to October 2008.

Of the 53 metro areas surveyed in June 2017, the overall average number of home sales increased 7.5% compared to May 2017 and 1.4% compared to June 2016. Thirty of the 53 metro areas experienced an increase in sales year-over-year, including Trenton, N.J. (+14.9%); Fargo, N.D. (+14.6%); Wilmington/Dover, Del. (+12.9%); Albuquerque, N.M. (+10.4%); and Billings, Mont. (+10.4%).

In June 2017, only three metro areas saw a decrease in median sales price: Trenton (-12.1%); Anchorage, Alaska (-2.5%); and Wilmington/Dover (-1.3%). Ten metro areas increased by double-digit percentages, with the largest increases seen in Las Vegas (+13.7%); Nashville, Tenn. (+13.7%); Seattle (12.3%); Manchester, N.H. (+12.2%); and San Diego (+11.6%).

The four metro areas with the lowest days on market were Omaha, Neb., at 20, Seattle (20), Denver (21) and San Francisco (22). The highest days on market averages were in Augusta, Maine, at 119, and Miami, at 85.

Also, in June 2017, 52 of the 53 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. At 6.4, Miami continued to be the only metro area that saw a months supply above 6.0, which is typically considered a buyer’s market. The markets with the lowest months supply of inventory continued to be in the West: San Francisco (1.0), Seattle (1.1) and Denver (1.2).

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