The May 2017 RE/MAX National Housing report is based off the April 2017 Sales Data Reported.
May 2017 RE/MAX National Housing Report
April Home Sales Cooler Than Regular Spring Period
The brisk start to the 2017 home-selling season bogged down in April with home sales dropping 4.1% below March and 4.5% below the previous April, as outlined by this month’s RE/MAX National Housing Report.
However the narrative of the ever-tightening inventory in conjunction with increased prices persisted, as the 53 metro area report saw the trends of a seller’s market continuing:
-The average length of time on Market declined for the third consecutive month and April’s 57 days set a whole new low for April in the report’s nine-year history.
-The Median Sales Price of $226,000 was the greatest price for any April and marked the 13th consecutive month of year-over-year price increases.
-Months Supply of Inventory, which dropped below 3 months in March for the first time in the report’s history, was 2.8. A months supply of less than 6.0 is considered a seller’s market.
-Inventory was down 17.6% from April 2016. This is actually the 102nd consecutive month of year-over-year declines dating back to October 2008.
Above three quarters of the report’s 53 metro areas saw April home sales decline year-over-year. In comparison, March posted a 6.6% year-over-year spike in sales. Having said that, April saw homes sell for more than they did in March in 81% of the markets, while 92% of the markets saw higher year-over-year sale prices.
“We may be seeing some frustration from buyers,” said Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder. “Inventory is tighter than ever, while strong demand keeps driving up home prices. At the same time, many potential sellers may also be reluctant to list their homes because the tight inventory might impact them as buyers. Home buyers and sellers will need to work with experienced real estate agents to navigate this tough market.”
Closed Transactions
Of the 53 metro areas surveyed in April 2017, the general average volume of home sales decreased 4.5% in comparison to April 2016. Forty-three of the 53 metro areas experienced a reduction in sales year-over-year or remained unchanged. Ten markets saw a boost in sales, including Wilmington/Dover, DE +13.8%, Fargo, ND +5.7%, Trenton, NJ +5.0%, Phoenix, AZ +4.3% and Houston, TX +2.3%.
Median Sales Price – Median of 53 metro median prices
In April 2017, the median of all 53 metro Median Sales Prices was $226,000, up 0.44% from March 2017 and up 5.2% from April 2016. Only four metro areas saw year-over-year price decreases, with 10 rising by double-digit percentages. The most significant double-digit increases were observed in Seattle, WA +13.9%, Dallas/Ft. Worth, TX +12.5%, Charlotte, NC +12.2%, Miami, FL +12.0% and Orlando, FL +11.7%.
Days on Market – Average of 53 metro areas
The typical Days on Market for homes sold in April 2017 was 57, down 1 week from the average in March 2017, and down seven days from the April 2016 average. The four metro areas together with the lowest Days on Market were San Francisco, CA at 22, Denver, CO at 25, Seattle, WA at 26 and Omaha, NE at 27. The highest Days on Market averages were in Augusta, ME at 148 and New York, NY at 96. Days on Market is the number of days between each time a home is first listed in an MLS and a sales contract is signed.
Months Supply of Inventory – Average of 53 metro areas
The number of homes for sale in April 2017 was down 1.3% from March 2017, and down 17.6% from April 2016. Based on the rate of home sales in April, the Months Supply of Inventory was 2.8, in comparison to March 2017 at 2.7 and April 2016 at 3.2. This is actually the second month in a row months supply is below 3.0. A 6.0-months supply indicates a market balanced equally between sellers and buyers. In April 2017, 51 of the 53 metro areas surveyed reported a months supply of less than 6.0, which happens to be typically considered a seller’s market. At 6.5, Burlington, VT and at 6.4, Miami, FL were the only two metro areas that saw a months supply above 6.0, which happens to be typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory remained in the west, with Seattle, WA remaining at 0.9 for the second month in a row, Denver, CO remaining at 1.0 for the third month in a row and San Francisco, CA at 1.1.