Home sales dipped 0.8 percent year-over-year in July, but sold at a quicker rate than any other month in roughly 10 years, according to the RE/MAX National Housing Report.
“After a jump in home sales in May and June, it’s not unusual to see a dip in sales in July,” says Adam Contos, co-CEO of RE/MAX. “This summertime slowdown is a national trend that we sometimes see this time of year, even though this month’s decrease was razor-thin. Low inventory continues to constrain the market. Successful buyers will have to be prepped and ready to act fast to purchase listings that, on average, are selling in record time.”
Of the 54* metro areas surveyed in July 2017, the overall average number of home sales decreased 15.8 percent compared to June 2017 and 0.8 percent compared to July 2016. Nineteen of the 54 metro areas experienced an increase in sales year-over-year, including Las Vegas, Nev., +19.8 percent, Wilmington/Dover, Del., +16.9 percent, Augusta, Maine, +8.1 percent, Philadelphia, Pa., +4.9 percent, and Tampa, Fla., +4.8 percent.
Median Sales Price
In July 2017, the median of all 54 metro median sales prices was $239,950, down 1.0 percent from June 2017 but up 7.4 percent from July 2016. Only three metro areas saw a year-over-year decrease in median sales price or remained unchanged (Billings, Mont., -2.2 percent, Anchorage, Alaska, -0.7 percent, and Houston, Texas, 0.0 percent). Seven metro areas increased by double-digit percentages, with the largest increases seen in Seattle, Wash., +13.7 percent, Tampa, Fla., +13.5 percent, Milwaukee, Wis., +11.6 percent, Portland, Ore., +11.4 percent, and Charlotte, N.C., +11.0 percent.
Days on Market
The average days on market for homes sold in July 2017 was 45, down two days from the average in June 2017 and down eight days from the July 2016 average. The four metro areas with the lowest days on market were Omaha, Neb., at 20, Seattle, Wash., at 20, Denver, Colo., at 22, and San Francisco, Calif., at 24. The highest days on market averages were in Augusta, Maine, at 98, and Miami, Fla., at 81. 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 July 2017 was down 2.1 percent from June 2017 and down 14.1 percent from July 2016. Based on the rate of home sales in July, the months supply of inventory was 3.1, compared to June 2017 at 2.8 and July 2016 at 3.5. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In July 2017, 52 of the 54 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. At 7.4 and 6.2 respectively, Miami, Fla., and Augusta, Maine, were the only metro areas 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 1.2, Seattle, Wash., at 1.3, Denver, Colo., at 1.4, and Omaha, Neb., at 1.6.
*The Cincinnati metro area was recently added to the RE/MAX National Housing Report.
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