As has been true throughout 2014, August home sales remained below the pace set in 2013. However, last month’s sales were 10.2 percent above the number of sales seen in August 2012, and were 17.8 percent higher than August 2008 sales, when the RE/MAX Housing Report began. The Median Sales Price of all homes sold in the 52 metropolitan areas surveyed in August was $202,500, which was 7.5 percent higher than the median price last August. While home prices continue to rise in 2014, they’re rising at a much slower rate than in 2013. The inventory of homes for sale was 4.4 percent lower than last year. At the rate of home sales in August, the Months Supply of Inventory rose to 4.5 on a scale where 6.0 indicates a market balanced equally between buyers and sellers.
“Although 2014 home sales may not reach the levels seen in 2013, the market has performed much stronger than many had predicted early in the year,” says Margaret Kelly, RE/MAX, LLC CEO. “This year’s market may have started off slowly, but it bounced back and slower price growth is keeping housing from becoming less affordable.”
In the 52 metro areas surveyed in August for the RE/MAX National Housing Report, the number of home sales dropped 6.6 percent below the sales in July and also fell 8.2 percent lower than August 2013 sales. Home sales in 2014 have not increased at the
rate seen in 2013, but they have reached levels greater than what was seen in 2012. Four of the last six months have reported higher sales than the previous month. Only four metro areas reported year-over-year sales increases in August.
In August, the Median Sales Price of all homes sold was $202,500. This was 0.5 percent lower than the median price in July, but 7.5 percent above the median price seen in August 2013. On a year-over-year basis, the Median Sales Price has now risen for 31 consecutive months. Because inventory is moving in the right direction, home prices are not rising as rapidly as last year, when the August Median Sales Price rose 12.9 percent. Among the 52 metro areas surveyed, 39 reported higher sales prices than one year ago and two were unchanged.
For all homes sold in August, the average Days on Market was 62, two days more than the average seen in July and the same as the average in August 2013. August becomes the 27th consecutive month with an average Days on Market below 90. The low Days on Market average continues to be the result of a low inventory of homes for sale and robust sales. Days on Market is the number of days between when a home is first listed in an MLS and when a sales contract is signed.
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