May home sales ticked slightly higher year-over-year, ending a nine-month streak of declines, according to the latest RE/MAX National Housing Report. At the same time, inventory grew for the eighth consecutive month, representing the most units for sale since August 2016 in the report’s 54 metro areas.
“The spring selling season was in full bloom during the month of May, offering both buyers and sellers something to like,” says RE/MAX CEO Adam Contos. “Buyers are generally finding increased selection along with moderating price increases. At the same time, in general, sellers are selling their homes quickly while still enjoying some price gains. Bottom line, the market is operating efficiently right now, and homes are selling, on average, at a good clip.”
Of the 54 metro areas surveyed in May 2019, the overall average number of home sales is up 15.3 percent compared to April 2019, and up 0.4 percent compared to May 2018. Leading the month-over-month sales increase were Billings, Mont., at +64.2 percent, Burlington, Vt., at +61.6 percent, and Minneapolis, Minn., at +35.8 percent.
Median Sales Price
In May 2019, the median of all 54 metro median sales prices was $259,500, up 3.3 percent from April 2019, and up 3.4 percent from May 2018. Three metro areas saw a year-over-year decrease in median sales price: San Francisco, Calif., at -5.1 percent, Honolulu, Hawaii, at -3.2 percent, and Billings, Mont., at -1.6 percent. Three metro areas increased year-over-year by double-digit percentages: Milwaukee, Wis., at +14.2 percent, Boise, Idaho, at +13.6 percent, and Albuquerque, N.M., at +10.2 percent.
Days on Market
The average days on market for homes sold in May 2019 was 47, down five days from the average in April 2019, and up two days from the May 2018 average. The metro areas with the lowest days on market were Omaha, Neb., at 25, and San Francisco, Calif., and Denver, Colo., both at 26. The highest days on market averages were in Augusta, Maine, at 106, Miami, Fla., at 87, and Hartford, Conn., at 84. 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 May 2019 was up 4.5 percent from April 2019 and up 4.9 percent from May 2018. Based on the rate of home sales in May 2019, the months supply of inventory decreased to 2.6 from 2.8 in April 2019, and decreased compared to 2.9 in May 2018. A six-months supply indicates a market balanced equally between buyers and sellers. In May 2019, of the 54 metro areas surveyed, only Miami, Fla., at 6.2 reported a months supply at or over six. The markets with the lowest months supply of inventory were Boise, Idaho, at 1.2, Omaha, Neb., at 1.3, and Manchester, N.H., and San Francisco, Calif., both at 1.4.
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