September became the fifth month this year to post a decline in home sales compared to a record-setting 2016, while marking the 71st consecutive month of rising sale prices year-over-year, according to the latest RE/MAX National Housing Report.
“We’re not seeing any relief from the nationwide housing shortage as we enter the typically slower fall and winter selling seasons,” says Adam Contos, Co-CEO of RE/MAX. “Plain and simple, we need more homes, particularly at the entry-level price point. Until then, it will most likely continue to be a seller’s market with homes going from listed to sold quickly.”
Of the 54 metro areas surveyed in September 2017, the overall average number of home sales decreased 14.9 percent compared to August 2017 and decreased 4.2 percent compared to September 2016. Sixteen of the 54 metro areas experienced an increase in sales year-over-year including, Billings, Mont., +18.4 percent, Burlington, Vt., +7.6 percent, Chicago, Ill., +7.4 percent, Honolulu, Hawaii, +4.6 percent, and Las Vegas, Nev., +3.8 percent.
Median Sales Price
In September 2017, the median of all 54 metro median sales prices was $225,000, down 5 percent from August 2017 but up 2.3 percent from September 2016. Only five metro areas saw a year-over-year decrease in median sales Price or remained unchanged (Trenton, N.J., -8.5 percent, Hartford, Conn., -5.3 percent, Billings, Mont., -2.2 percent, and Augusta, Maine, and Baltimore, Md., 0.0 percent). Eight metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Seattle, Wash., +13.7 percent, San Francisco, Calif., +13.2 percent, Providence, R.I., +13 percent, Las Vegas, Nev., +12.2 percent, and Tampa, Fla., +11.4 percent.
Days on Market
The average days on market for homes sold in September 2017 was 49, up two days from the average in August 2017, and down seven days from the September 2016 average. The four metro areas with the lowest days on market were Omaha, Neb., at 23, Seattle, Wash., at 25, and San Francisco, Calif., at 26. The highest days on market averages were in Augusta, Maine, at 105, and Burlington, Vt., at 94. 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 September 2017 was down 3.6 percent from August 2017, and down 14.1 percent from September 2016. Based on the rate of home sales in September, the months supply of inventory increased to 3.6 from August 2017 at 3.1, compared to September 2016 at 3.9. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In September 2017, 51 of the 54 metro areas surveyed reported a months supply of 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 Miami, Fla., at 11.8, Augusta, Maine, at 6.4, and Birmingham, Ala., at 6.3. 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 1.5, Denver, Colo., at 1.6, and San Diego, Calif., at 1.8.
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