RE/MAX: Sellers’ Market Persists Amid Low Inventories
RE/MAX, Denver, said the spring home-buying season set post-recession records for home sales and prices and low inventories.
The company’s April National Housing Report, covering 53 major metropolitan areas, showed a 6.6 percent increase in home sales, breaking a record set in March 2016. Thirty-eight of the 53 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, perpetuating a strong sellers’ market; RE/MAX said a six month inventory supply is considered a balanced market. Active inventory continued to decline, dropping by 17% year-over-year.
The Median Sales Price of $225,000–also a March record–represented an 11% year-over-year increase and the 12th consecutive month of year-over-year price increases.
Homes continued selling faster last month, with the average Days on Market dropping to 64, compared to 68 in February and 71 in March 2016.
“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.”
The report said markets with the largest increase in sales included Richmond, Va., 23.3%, Wilmington/Dover, Del., 22.6%, Trenton, N.J., 19.7%, Las Vegas, 15.3% and Chicago, 14.8%.
The median of all 53 metro Median Sales Prices rose to $225,000, up by 7.1% from February 2017 and up by 11.0% from a year ago. Only four metro areas saw year-over-year decreases, with 15 rising by double-digit percentages. Largest double-digit increases were seen in Manchester, N.H., 15.9%; Orlando, 13.7%; Charlotte, N.C., 13.3%; Trenton, N.J., 12.8%; and Nashville, Tenn., 12.8%.
Metro areas with the lowest Days on Market were San Francisco and Omaha, Neb., both at 27; and Denver at 32. Highest Days on Market averages were in Augusta, Maine, 159; and Burlington, Vt., 118.
RE/MAX said the number of homes for sale in March rose by 1.2% from February but down by 17.0% from a year ago. Fifty-two of 53 metro areas surveyed reported a months’ supply of less than 6.0, which is typically considered a seller’s market. At 6.3, Burlington was the only metro area to see a months’ supply above 6.0. Markets with the lowest Months’ Supply of Inventory continued to be in the west, with Seattle at 0.9, San Francisco at 1.0 and Denver at 1.0.
