Housing ended summer strong, with home sales down just 0.84 percent year-over-year in August, according to the RE/MAX National Housing Report.
“Overall, we’re still seeing home prices rise year-over-year at just above historical averages, even with slightly declining nationwide prices in August, which is an expected annual pattern,” says Adam Contos, co-CEO of RE/MAX. “The data shows that home hunters continue to experience very limited inventory and increased competition, and home sellers are benefiting from quick sales for top dollar.”
Closed Transactions
Of the 54 metro areas surveyed in August 2017, the overall average number of home sales increased 2.8 percent compared to July 2017 and decreased 0.84 percent compared to August 2016. Twenty-four of the 54 metro areas experienced an increase in sales year-over-year, including Wilmington/Dover, Del.,+17.2 percent, Trenton, N.J., +13.8 percent, Honolulu, Hawaii, +12 percent, Augusta, Maine, +11.1 percent, and Boise, Idaho, +9 percent.
Median Sales Price
In August 2017, the median of all 54 metro median sales prices was $236,475, down 1.3 percent from July 2017 but up 5.4 percent from August 2016. Only three metro areas saw a year-over-year decrease in median sales price or remained unchanged (Anchorage, Alaska, -1.5 percent, Augusta, Maine, -1.4 percent, and Hartford, Conn., -1.4 percent). Nine metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Cincinnati, Ohio, +14.5 percent, Las Vegas, Nev., +13.7 percent, Boise, Idaho, +12.4 percent, Nashville, Tenn., +12.1 percent, San Francisco, Calif., +11.5 percent, and Seattle, Wash., +11.4 percent.
Days on Market
The average days on market for homes sold in August 2017 was 47, up two days from the average in July 2017, and down seven days from the August 2016 average. The four metro areas with the lowest days on market were Omaha, Neb., and Seattle, Wash., at 21, and Denver, Colo., and San Francisco, Calif., at 24. The highest days on market averages were in Augusta, Maine, at 100, and Burlington, Vt., at 92. 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 August 2017 was down 3.9 percent from July 2017, and down 13.7 percent from August 2016. Based on the rate of home sales in August, the months supply of inventory remained unchanged from July 2017 at 3.1, compared to August 2016 at 3.4. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In August 2017, 53 of the 54 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. At 6.5, Miami, Fla., was 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 1.3, Denver, Colo., at 1.4, and San Diego, Calif., at 1.7.
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