RE/MAX: Inventory Grows for Sixth Straight Month While Sales Decline

(Illustration courtesy of RE/MAX)

The number of homes on the market grew month-over-month for a sixth consecutive month in September as sales declined 13.8% from August and 17.0% from a year ago, reported RE/MAX, Denver.

September’s 9.3% increase in inventory was the largest month-over-month increase in 14 months, RE/MAX said in its National Housing Report for September 2023. Even so, inventory is 8.6% below September 2022 levels.

Despite the growth in inventory over August 2023, new listings were down 1.8% from August and 7.8% year over year, the report said.

Meanwhile, the median sales price of $415,000 posted a seasonal decline of 2.4% month over month – last September’s sequential drop was 1.2% – but remained 2.5% higher than last September’s $405,000, the report said.

“We’re seeing some seasonal trends in play,” RE/MAX President and CEO Nick Bailey said. “The dip in sales followed typical seasonality, and the increase in inventory on the market was much needed to balance previous low inventory. And that’s good news for buyers who choose to enter the market this fall.”

Meghan Carroll, a real estate agent in Monmouth Beach, N.J. says it can be a tough market for some buyers. “Higher interest rates have deterred some buyers but not all, which has surprised me somewhat, but those buyers are looking at the long-term picture. Inventory levels are also still low, which is keeping the prices higher and making bidding wars commonplace here. So, it can be tough out there for some buyers – especially young, first-time buyers.”

Other notable metrics:

Homes sold for an average of 99% of the listing price in September, the same as in both August and in September 2022, RE/MAX reported.

Months’ supply of inventory in September equaled 2.1, larger than both August’s 1.7 and September 2022’s 2.0.

Homes sold in September were on the market an average of 35 days, one day longer than in August or in September of last year.