Four out of the first six months of 2017 have been for the record books, with sales in June increasing 7.5 percent from May and 1.4 percent from the previous June, according to the RE/MAX National Housing Report.
“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.”
Of the 53 metro areas surveyed in June 2017, the overall average number of home sales increased 7.5 percent compared to May 2017 and 1.4 percent compared to June 2016. Thirty of the 53 metro areas experienced an increase in sales year-over-year including, Trenton, N.J., +14.9 percent, Fargo, N.D., +14.6 percent, Wilmington/Dover, Del., +12.9 percent, Albuquerque, N.M., +10.4 percent, and Billings, Mont., +10.4 percent.
Median Sales Price
In June 2017, the median of all 53 metro median sales prices was $245,000, up 5.6 percent from May 2017 and up 7.5 percent from June 2016. Only three metro areas saw a decrease in median sales price: Trenton, N.J., -12.1 percent, Anchorage, Alaska, -2.5 percent, and Wilmington/Dover, Del., -1.3 percent). Ten metro areas increased by double-digit percentages, with the largest increases seen in Las Vegas, Nev., +13.7 percent, Nashville, Tenn., +13.7 percent, Seattle, Wash., 12.3 percent, Manchester, N.H., +12.2 percent, and San Diego, Calif., +11.6 percent.
Days on Market
The average days on market for homes sold in June 2017 was 47, down four days from the average in May 2017, and down seven days from the June 2016 average. The four metro areas with the lowest days on market were Omaha, Neb., at 20, Seattle, Wash., at 20, Denver, Colo., at 21 and San Francisco, Calif., at 22. The highest days on market averages were in Augusta, Maine, at 119 and Miami, Fla., at 85. 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 June 2017 was up 1.2 percent from May 2017, and down 15.2 percent from June 2016. Based on the rate of home sales in June, the months supply of inventory was 2.8, compared to May 2017 at 2.6 and June 2016 at 3.2. This is the fourth consecutive month that months supply has been below 3.0. A 6.0-months supply indicates a market balanced equally between buyers and sellers. 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, Fla., 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, with San Francisco, Calif., at 1.0, Seattle, Wash., at 1.1, and Denver, Colo., at 1.2.
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