RE/MAX: June Sales Post Unusual Decline

RE/MAX, Denver, said while June is typically the strongest month for home sales, it didn’t prove to be the case this year.

The company’s monthly National Housing Report said June saw closings decline by 4.7% from May and by 7.8% from a year ago. However, the report noted the median sales price of $276,000 represented the highest figure in its 10-year history.

RE/MAX CEO Adam Contos noted historically, June has recorded the most sales each of the past five years (July led 2013 sales). He said this is only the second June in report history to have fewer sales than May.

“Record prices appear to have kept June sales figures from topping a strong May,” Contos said. “Nevertheless, there are indications, including the return of very favorable mortgage rates, that the pace could pick up in July. Several encouraging longer-term trends-ongoing demand, improving inventory levels, low interest rates–are helping the market make incremental progress on multiple fronts. But supply remains a concern, so we need more homes to be built.”

The report said with sales slowing, June inventory increased 1.3% from a year ago, marking the first year-over-year rise in June inventory in the report’s history. Moreover, inventory grew for the ninth consecutive month, and the report’s 54 metro areas had the most units for sale since August 2016.

RE/MAX said starting in 2013, June has also produced the highest median sales price of each year. June’s record $276,000 was 6.7% higher than the $259,000 recorded in June 2018. “The jump in sales price after months of moderation is worth watching for its impact on affordability,” Contos said.

The report said June’s days on market total of 44 meant that sales happened three days faster than in May but took three days longer than a year ago. Months of inventory in June was 2.8, the same as May’s and below June 2018’s 3.1.