National Housing Report
A sixth consecutive month of declining home sales in January
contributed to the largest year-over-year inventory increase in at least ten
years, according to the RE/MAX National
While year-over-year home sales dropped eleven percent – extending
a streak that began in August – inventory grew year-over-year by an average of
6.4 percent across the report’s fifty-four U.S. metro areas. January marked the
fourth consecutive month of year-over-year inventory growth – further reversing
a decade-long trend of shrinking inventory. December 2018’s year-over-year
inventory growth of 4.7 percent was the previous record in the report’s
“The winter chill extended to the housing market in January, as
home sales remained cool,” said RE/MAX CEO Adam Contos. “The good news is that
inventory levels in January continued to rise on a year-over-year basis,
providing incremental improvement in what’s been a multi-year shortage of
for-sale homes. This is a positive for homebuyers, as the market continues to
swing their way.”
The median sales price of $234,000 was a report record for
January, increasing 4.6 percent over January 2018. But the rate of sales price
increase was considerably less than the 6.7 percent posted from January 2017 to
January 2018. December 2018 was the only month since January 2012 to show a
year-over-year decline in median sales price. Fifty-nine days on market was a
record low for January sold listings – averaging one day less than the 60
posted in January 2018. January’s 3.9-month supply of inventory was higher than
the 3.4-month supply of January 2018.
“Underlying demand remains solid overall, as evidenced by
widespread price increases,” said Contos. “So the housing market, while not
markedly busy in January, remains relatively healthy. Furthermore, with
interest rates stabilizing and home-price increases slowing, the spring selling
season shapes up to be as interesting as any we have seen in years.”
Of the 54 metro areas surveyed in January 2019, the overall
average number of home sales was down 26.1 percent compared to December 2018,
and down 11.0 percent compared to January 2018. In January 2019, the median of
all 54 metro Median Sales Prices was $234,000, down 2.5 percent from December
2018, and up 4.6 percent from January 2018. The average Days on Market for
homes sold in January 2019 was fifty-nine, up four days from the average in
December 2018, and down one day from the January 2018 average. For more info,
please click here
to download your copy of the RE/MAX
National Housing Report for January 2019.
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RE/MAX National Housing Report November 2018
Years of shrinking inventory gave way in November to a second consecutive month of year-over-year growth in the number of homes for sale, according to the RE/MAX National Housing Report. The apparent reason: Home sales declined for the fourth consecutive month when compared to the same months in 2017. Even so, home prices remained strong.
Across the 53 metro areas surveyed, inventory rose 3.0 percent – the highest monthly year-over-year gain in the 10-year history of the report, following October’s 1.0 percent increase that ended a streak of 119 months of year-over-year declines dating back to November 2008. The Months Supply of Inventory rose to 3.9, the highest for any month since 4.2 in December 2016.
November home sales, meanwhile, declined 6.9 percent, which was the second-largest year-over-year decline of 2018 and the biggest year-over-year sales decline for November in five years. This year only April and July sales exceeded 2017 totals for the corresponding months.
“The road to market normalization can be bumpy,” said RE/MAX CEO Adam Contos. “It’s good to see the small uptick in inventory, and the drop in November sales isn’t too surprising – given the recent trends, the mid-term elections, and the earlier-than-usual Thanksgiving holiday. As we near year-end, three main themes appear clear – buyers are grappling with affordability issues and tight inventory; sellers are unsure how to react to the cooling market; and homes priced properly are still selling rather quickly. All three underscore the fact that the guidance of a professional agent is even more critical in times like these.”
November’s Median Sales Price of $235,000 was 4.0 percent higher than November 2017 and was the highest November price in the report’s history. It marked the 32nd consecutive month of year over-year price increases. Comparing the first 11 months of 2018 to 2017, home prices are up 6.0 percent. Even with declining sales, homes sold at record speed for November. Homes spent an average of 51 Days on Market, compared to the previous November low of 54 days set last year.
Click here to download your copy of the RE/MAX National Housing Report for November 2018. If you would like to sell your home or find the perfect home for sale in one of the many Arizona retirement communities please contact Sharon Mason today!
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RE/MAX National Housing Report September 2018
The RE/MAX National Housing Report for September 2018 showed the trends of fewer closings and stabilizing inventory continued through September, punctuated by a surprisingly big 11.6 percent year-over-year drop in home sales. At the same time, the RE/MAX National Housing Report for September 2018 posted a Median Sales Price of $241,000 that marked the 30th consecutive month of year-over-year price increases. It is the highest September price in the 10-year history of the report. To access the housing report infographic, visit: https://rem.ax/2phKHWT.
The decline in home sales year-over-year was the largest since May of 2011, as September became the seventh month of 2018 to record lower sales than 2017. Even so, year-to-date 2018 home sales resemble 2017’s.
“The big drop in September closings catches your attention. The market is clearly rebalancing as buyers and sellers continue to process the increasing interest rate environment and what that means to them,” said RE/MAX CEO Adam Contos. “The slower drop in inventory – a visible trend for nearly half a year – further illustrates the ongoing shift toward market equilibrium, and that’s healthy in the long-term.”
Active inventory dropped for the 119th consecutive month, the decline of 4.7 percent from September 2017 was the smallest year-over-year decrease since August 2014. In addition, the September year-over-year inventory drop was the fifth consecutive month in 2018 to post single-digit percent declines rather than the double-digit monthly drops consistently seen over the previous three years.
“It’s a little surprising to see prices staying so strong, but it’s hardly shocking in such a tight market,” said Contos. “The headwinds of rising prices and interest rates amid already tight inventory levels have been crimping affordability and slowing sales for most of the year, but it varies by geography. In circumstances like these, where the market is tricky to navigate, both buyers and sellers can benefit by aligning themselves with a professional agent – a local expert who can cut through the noise and advocate on their behalf.”
Home prices rose by 5.6 percent over September 2017, more than twice the year-over-year price increase of 2.3 percent from September 2016 to September 2017. That reversed a trend seen in the previous three months, when year-over-year price increases trailed 2017’s rate of growth.
Months Supply of Inventory totaled 3.7, which is the second-lowest for September in report history, second only to 3.6 months in September 2017. Days on Market of 46 was a September record for the report – three days less than September 2017. Of the 54 metro areas surveyed in September 2018, the overall average number of home sales is down 1.1percent compared to August 2018, and down 11.6 percent compared to September 2017.
Click here to download your copy of the RE/MAX National Housing Report for September 2018. Looking to sell your home or buy a home in an Arizona retirement community? Contact Sharon Mason, your Arizona retirement expert, today!
RE/MAX National Housing Report for August 2018
The RE/MAX National Housing Report for August 2018 shows increasing home prices, low inventory and a reduction in days on market. These combined factors made August 2018 the sixth time this year that home sales lagged behind last year’s pace—but only slightly at -1.1 percent. To access the housing report infographic, visit: https://rem.ax/2phKHWT.
Home prices rose by 3.7 percent over August 2017, much lower than the year-over-year price increase of 5.4 percent from August 2016 to August 2017. In fact, the past three months of 2018 have trailed 2017’s rate of price growth year-over-year—compare that to four of the first five months of 2018 when year-over-year price increases easily topped those posted in 2017.
The Median Sales Price of $248,500 marked the twenty-ninth consecutive month of year-over-year price increases.
Even though active inventory dropped for the 118th consecutive month, the decline of 5.4 percent from August 2017 marked the smallest year-over-year decrease since August 2014. In addition, the August 2018 inventory drop marked the fourth consecutive month in 2018 to post single-digit percent declines, rather than the double-digit monthly drops consistently seen in early 2018 and over the previous three years.
“It varies by market, but we’re hearing that buyers are being more selective and sellers are becoming more pragmatic,” said RE/MAX CEO Adam Contos. “That dynamic could bring inventory levels up, especially in the most overheated markets, where we expect to see the clearest signs of equilibrium returning. The economy is strong and potential buyers are out there—they just need more listings, at the right price points, to consider. We believe that balance will return, which will be good for everyone in the long run. It’s just a matter of when.”
Contos added that although the lack of inventory continues to be a challenge, the trends suggest that the market finally appears to be rebalancing.
“The moderation we are experiencing seems to be a bit more than the normal seasonal lull we’d expect this time of year,” said Contos.
Want to know more about the current real estate market? Click here to download your copy of the August 2018 RE/MAX National Housing Report. If you are looking to sell your Arizona home or are ready to buy a home in a luxury Arizona retirement community, please contact Sharon Mason today.
Sharon Mason, Associate Broker
April 2017 RE/MAX National Housing Report
March launched the home-buying season with post-recession records for increasing home sales and prices and decreasing inventory, according to this month’s RE/MAX National Housing Report that surveys fifty-three metro areas. Last month, home sales were 6.6 percent higher than the nine-year-old report’s previous March record, set in 2016. Thirty-eight of the fifty-three metro areas in the report showed year-over-year increases.
Meanwhile, Months Supply of Inventory dropped below three months for the first time in the history of the report, indicating a market that greatly favors sellers, as six months is considered a balanced market. Active inventory continued to decline, dropping 17 percent year-over-year. As a result, the Median Sales Price of $225,000—also a March record—was up eleven percent year-over-year. This was the twelth consecutive month of year-over-year price increases.
“We expect a seasonal uptick in sales this time of year and March certainly met and somewhat exceeded that expectation,” said Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder. “We don’t anticipate the tightening inventory to ease up in most markets until new home construction can catch up to its pre-recession pace. Until then, sellers will enjoy a fast-paced market and buyers will need to work with their agents to get in the right home.”
Want to know more about the current real estate market? Click here to download your copy of the April 2017 RE/MAX National Housing Report. If you are looking to sell your Arizona home or are ready to buy a home in a luxury Arizona retirement community, please contact Sharon Mason today.