The brisk start to the 2017 home-selling season slowed down in April with home sales dropping 4.1 percent below March and 4.5 percent below the previous April, according to the May 2017 RE/MAX National Housing Report.
“We may be seeing some frustration from buyers,” said Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder. “Inventory is tighter than ever, while strong demand keeps driving up home prices. At the same time, many potential sellers may also be reluctant to list their homes because the tight inventory might impact them as buyers. Home buyers and sellers will need to work with experienced real estate agents to navigate this tough market.”
More than three quarters of the report’s fifty-three metro areas saw April home sales decline year-over-year. By contrast, March posted a 6.6 percent year-over-year spike in sales. Even so, April saw homes sell for more than they did in March in 81 percent of the markets, while 92 percent of the markets saw higher year-over-year sale prices.
Yet the narrative of the ever-tightening inventory coupled with increased prices persisted, as the fifty-three-metro area report saw the trends of a seller’s market continuing:
- The average number of Days on Market declined for the third consecutive month and April’s fifty-seven days set a new low for April in the report’s nine-year history.
- The Median Sales Price of $226,000 was the highest price for any April and marked the 13th consecutive month of year-over-year price increases.
- Months Supply of Inventory, which dropped below three months in March for the first time in the report’s history, was 2.8. A months supply of less than 6.0 is considered a seller’s market.
- Inventory was down 17.6 percent from April 2016.
Click here to read the May 2017 National Housing Report brought to us by RE/MAX Headquarters. If you or anyone you know is interested in learning what home values are in Arizona’s retirement communities, please give me a call today.