RE/MAX: July Home Sales Up 2.4%, Inventory Growth Down

RE/MAX, Denver, said July home sales bounced back after a sluggish June, as inventory declined for the first time in nine months.

The company’s monthly National Housing Report said July home sales rose by 2.4% year over year. This was enough to end nine months of year-over-year inventory growth as the number of homes for sale declined 1.4%.

RE/MAX CEO Adam Contos noted while a drop in home sales from June to July is typical in the report’s 53 metro areas, the 0.2% decline from June to July was “by far” the smallest month-over-month decline since July 2013. And while June sales failed to top May for only the second time in the report’s 10-year history, July sales set a report record for the month.

“July sales snapped back after a tepid June, as attractive low interest rates appear to have brought more buyers into the mix,” Contos said. “The housing market has been a bit uneven since the early spring, with each encouraging month seemingly followed by one with lukewarm results. It’s possible the housing market has finally shaken some mud off its boots and can maintain its momentum for the back half of the year. If the broader macro environment hangs on, we could see a potentially strong finish to 2019.”

The report said July’s median sales price of $273,000, while down slightly from June’s record high, was 9.2% higher from a year ago and marked the seventh consecutive month of year-over-year price growth. RE/MAX said home prices have risen, year over year, in 88 of the past 90 months dating back to February 2012. 

“Although lower interest rates help affordability, we have now seen two straight months of accelerating price increases,” Contos said. “If the trend continues, it’s not an encouraging development for buyers.”

The report said July days on market was unchanged at 43, but two dayls longer than a year ago. Months’ inventory totaled 2.7, down compared to June’s 2.9 and 3.3 in July 2018.

Of 53 metro areas surveyed in July, overall average number of home sales fell by 0.2% from June but rose by 2.4% from a year ago. Leading the month-over-month sales percentage increase were Honolulu at 11.8%, Anchorage, Alaska at 10.2% and New York at 9.2%.