RE/MAX: First Half of 2017 Ends with Record Sales, Prices
RE/MAX, Denver, said the halfway point of 2017 shows the U.S. housing market on pace for another record year as four of the past six months topped same month sales from a year ago.
The July RE/MAX National Housing Report said June home sales came in 1.4% higher than a year ago. The combination of increased sales and a record low inventory that slipped further to 2.8 months resulted in higher sales prices. June’s median sales price of $245,000, up 7.5% over last June, also set a report record. Prices increased in 50 of the report’s 53 markets.
“Sellers continue to benefit from limited inventory, getting top-dollar for their homes, and as a result, overall sales are at a record high,” said Adam Contos, RE/MAX Co-CEO. “Mortgage rates are still relatively low and the market may be taking a positive turn, albeit subtle, as recent Labor Department data showed a decline in open construction jobs which could mean more workers focused on new home builds.”
The report said average number of Days on Market dropped to a report-record low of 47, while inventory dropped year-over-year in 87% of the markets.
Other key report metrics:
–Thirty of the 53 metro areas experienced an increase in transactions.
–The Median Sales Price of $245,000 was the highest in the history of the report.
–Decreasing 15.2% from June 2016, inventory continued to decline year-over-year, marking the 104th consecutive month of year-over-year declines dating back to October 2008.
Of the 53 metro areas surveyed in June, the overall average number of home sales increased 7.5% compared to May and by 1.4% compared to a year ago. Trenton, N.J. saw a nearly 15 percent year over year increase, while Fargo, N.D. saw home sales increase by 14.6 percent. Wilmington, Del., saw prices increase by nearly 13 percent.
However, Trenton also saw the largest decrease in median sales price, falling by more than 12 percent. Anchorage, Alaska and Wilmington also saw price drops. Ten metro areas saw double-digit yearly price increases, led by Las Vegas and Nashville at 13.7%, Seattle at 12.3%, Manchester, N.H. at 12.2% and San Diego at 11.6%.
Metro areas with the lowest Days on Market were Omaha, Neb. at 20, Seattle at 20, Denver at 21 and San Francisco at 22. Highest Days on Market averages were in Augusta, Maine at 119 and Miami at 85.
The number of homes for sale in June rose by 1.2% from May but fell by 15.2% from a year ago. All but one metro area surveyed reported a months’ supply of less than 6.0, which is typically considered a seller’s market (Miami, 6.4 months) Markets with the lowest Months’ Supply of Inventory continued to be in the west, with San Francisco at 1.0, Seattle at 1.1 and Denver at 1.2.
