July home sales rose 1.8 percent year-over-year, making it the second month of 2018 to post a sales increase year-over-year, according to the July RE/MAX National Housing Report.
“Because we’ve faced challenging inventories and increasing home prices for some time now, a seasonal slowdown that rebalances the market a bit might actually be a positive in the months ahead,” says Adam Contos, CEO of RE/MAX. “It could level affordability to some extent and create more opportunity for buyers who’ve been priced out of hot markets.”
Of the 54 metro areas surveyed in July 2018, the overall average number of home sales was down 8.7 percent compared to June 2018, yet increased 1.8 percent compared to July 2017. Thirty-seven of the 54 metro areas experienced an increase in sales year-over-year, including Billings, Mont., +27.4 percent, Tulsa, Okla., +13.2 percent, Richmond, Va., +12.9 percent, and Pittsburgh, Pa., +11 percent.
Median Sales Price
In July 2018, the median of all 54 metro median sales prices was $250,575, down 3.1 percent from June 2018 and up 4.4 percent from July 2017. Only four metro areas saw a year-over-year decrease in median sales price, including Wilmington/Dover, Del., -2.2 percent, and Trenton, N.J., -0.7 percent. Four metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Boise, Idaho, +18.8 percent, Omaha, Neb., +12.7 percent, San Francisco, Calif., +12.6 percent, and Salt Lake City, Utah, +12.4 percent.
Days on Market
The average days on market for homes sold in July 2018 was 41, down one day from the average in June 2018, and down four days from the July 2017 average. The metro areas with the lowest days on market were Seattle, Wash., at 19, Omaha, Neb., at 20, and Denver, Colo., and San Francisco, Calif., tied at 22. The highest days on market averages were in Augusta, Maine, at 89, Miami, Fla., at 83, Hartford, Conn., at 76, and New York, N.Y., at 65. 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 2018 was down 0.3 percent from June 2018, and down 7.8 percent from July 2017. Based on the rate of home sales in July, the months supply of inventory increased to 2.9 from 2.7 in June 2018, and decreased from 3.1 in July 2017. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In July 2018, all but one of 54 metro areas surveyed reported a months supply at or less than 6.0, which is typically considered a seller’s market. The markets with the lowest months supply of inventory are San Francisco, Calif., and Boise, Idaho, tied at 1.4, Denver, Colo., at 1.5, and Salt Lake City, Utah, at 1.6
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