While sales dropped slightly from a year ago, December capped off a 2017 of record home prices, speedy sales and low inventory, according to the January RE/MAX National Housing Report.
“We see the median sales price of homes across the country rising every month, year-over-year, but the days on market and the supply of homes for sale hit record lows in December,” says Adam Contos, co-CEO of RE/MAX. “If inventory keeps getting tighter across the country, it’ll be interesting to see how it might affect sales.”
Of the 54 metro areas surveyed in December 2017, the overall average number of home sales decreased 2.5 percent compared to November 2017 and decreased 3.3 percent compared to December 2016. Fifteen of the 54 metro areas experienced an increase in sales year-over-year, including Trenton, N.J., +13.9 percent, Richmond, Va., +10.9 percent, Burlington, Vt., +8.1 percent, and Raleigh-Durham, N.C., +5.4 percent.
Median Sales Price
In December 2017, the median of all 54 metro median sales prices was $232,500, up 3.1 percent from November 2017 and up 8.1 percent from December 2016. Only four metro areas saw a year-over-year decrease in median sales price: Anchorage, Alaska, -6.5 percent; Wichita, Kan., -3.9 percent; Fargo, N.D.; -1.8 percent; and Wilmington/Dover, Del., -.90 percent. Ten metro areas increased year-over-year by double-digit percentages, with the largest increases seen in San Francisco, Calif., +17.8 percent, Las Vegas, Nev., +17.1 percent, Seattle, Wash., +13 percent, and Boise, Idaho, +12.8 percent.
Days on Market
The average days on market for homes sold in December 2017 was 57, up three days from the average in November 2017 and down five days from the December 2016 average. The four metro areas with the lowest days on market were Omaha, Neb., and San Francisco, Calif., at 27, Nashville, Tenn., at 31, and Seattle, Wash., at 34. The highest days on market averages were in Augusta, Maine, at 122, and Chicago, Ill., and Miami, Fla., at 86. 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
The number of homes for sale in December 2017 was down 14 percent from November 2017, and down 14.6 percent from December 2016. Based on the rate of home sales in December, the months supply of inventory increased to 3.7 from November 2017 at 3.6, but decreased compared to December 2016 at 4.2. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In December 2017, 52 of the 54 metro areas surveyed reported a months supply at or less than 6.0, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, which is typically considered a buyer’s market, were Augusta, Maine, at 9.5, and Miami, Fla., at 8.7. The markets with the lowest months supply of inventory continued to be in the West, with San Francisco, Calif., at 0.9, Seattle, Wash., at 1.4, and Denver, Colo., at 1.5.
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