RE/MAX has published its latest national housing report for September 2023 – in a nutshell, inventory is up but sales are down. So, why is the market lagging? Mortgage rates probably have something to do with it, but let’s spotlight the specifics of RE/MAX’s findings, which range from local to national.
In general, by September 2023, home sales declined month over month by 13.8% and year-over-year by 17%.
However, inventory increased by 9.3% from August to September (according to RE/MAX, the largest monthly jump in 14 months). Why this discrepancy? More inventory didn’t translate to more listings, which actually declined 1.8% month over month. It stands to reason that potential sellers don’t want to sell right now, which in turn tracks with recent declines in existing home sales.
Another factor helping to explain the drop in both sales and listings? RE/MAX reports a monthly drop in median sales price (to $415,000, 2.5% lower than in August 2023). Lower prices hold the potential to further disinterest sellers.
The highest-ranking states in the following categories include:
Greatest year-over-year decrease in listings: Las Vegas, Nevada (-23.1%).
Greatest year-over-year decrease in closed transactions: Trenton, New Jersey (-29.9%).
Greatest year-over-year increase in price: Manchester, New Hampshire (11.7%).
Greatest year-over-year increase in close-to-list price transactions: Trenton, New Jersey (+2.8 percentage points).
Greatest year-over-year increase in days a house spends on the market: Indianapolis, Indiana (57.4%).
Greatest year-over-year decrease in inventory supply (measured in months): Phoenix, Arizona (-47.4%).
RE/MAX President and CEO Nick Bailey commented on these findings:
“We’re seeing some seasonal trends in play. The dip in sales followed typical seasonality, and the increase in inventory on the market was much needed to balance previous low inventory. And that’s good news for buyers who choose to enter the market this fall.”
RE/MAX also asked for the opinion of Meghan Carroll. Carroll is a real estate agent with RE/MAX Elite in Monmouth Beach, New Jersey, a region that ranked high on the year-over-year changes : “Higher interest rates have deterred some buyers but not all, which has surprised me somewhat, but those buyers are looking at the long-term picture. Inventory levels are also still low, which is keeping the prices higher and making bidding wars commonplace here. So, it can be tough out there for some buyers – especially young, first-time buyers.”
For more information, visit https://www.remax.com/.
