RE/MAX: Brisk May Sales Set Post-Recession Records
RE/MAX, Denver, said home sales rebounded after dipping in April, posting the strongest May in nine years.
The company’s monthly National Housing Report said home sales increased by 20.6% from April and by 4.3% from a year ago. RE/MAX said it was the strongest May in terms of home sales in the nine-year history of the report. T
The report also noted the average number of Days on Market dropped to a record low of 51, consistent with the Months Supply of Inventory shrinking to a record-low 2.6 months, falling for the 103rd consecutive month (year over year).
More than two-thirds of the metro areas experienced an increase in transactions as 52 of the 53 metro areas experienced a price increase. Additionally, the May Median Sales Price of $232,500 was the second-highest in the history of the report, only behind the August 2008 Media Sales Price of $236,062.
Decreasing 16.2% from May 2016, inventory continued to decline year-over-year. This is the 103rd consecutive month of year-over-year declines dating back to October 2008.
The U.S. continues to enjoy rising home values
“In May, we saw an uptick of both loan applications and home sales, which is encouraging in terms of more people getting into the market for homes,” said Adam Contos, RE/MAX Co-CEO. “We don’t expect that the Federal Reserve’s announcement on Wednesday to raise interest rates a quarter of a point will greatly affect the market’s momentum. But housing demand only intensifies the tug-of-war with tight inventories driving prices up.”
Other report highlights:
–Of 53 metro areas surveyed in May, 39 experienced an increase in sales year-over-year including Albuquerque, N.M. +20.8%, Tulsa, Okla. +13.4%, Las Vegas +12.2%, Honolulu +11.5% and Phoenix +11.3%.
–Fargo, N.D. was the only metro area to see a year-over-year price decrease (-2.73%). Six metro areas increased by double-digit percentages, with the largest increases seen in Manchester, N.H. +13.2%, Seattle +12.8%, Tampa, Fla. +12.8%, Las Vegas +10.7% and Dallas/Fort Worth +10.7%.
–Metro areas with the lowest Days on Market were Omaha, Neb. at 20, San Francisco, 21, Seattle, 22 and Denver, 23. The highest Days on Market averages were in Augusta, Maine at 136 and Burlington, Vt. at 98.
–The number of homes for sale in May was down 0.6% from April and down 16.2% from May 2016. At 6.1, Miami was the only metro area that saw a months’ supply above 6.0, which is typically considered a buyer’s market. The markets with the lowest Months’ Supply of Inventory continued to be in the west, with both San Francisco and Seattle at 0.9 and Denver at 1.0 for the fourth month in a row.
