May’s Fast Home Sales Set Post-Recession History

Following a brief dip in April home sales, the U.S. housing market returned to seasonally huge sales in May, increasing 20.6% from the previous month and 4.3% from May 2016, in accordance with the RE/MAX National Housing Report released today. In fact, it turned out to be the best May in terms of home sales in the nine-year history of the report.

May’s Fast Home Sales Set Post-Recession History

Additionally, the typical number of Days on Market dropped to a record low of 51, consistent with the Months Supply of Inventory shrinking to 2.6 months – both records for the report.

Other notable numbers:

Over two-thirds of the metro areas experienced a boost in transactions.
The May 2017 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 actually the 103rd consecutive month of year-over-year declines going back to October 2008.
The U.S. continues to enjoy rising home values as 52 of the 53 metro areas experienced a price increase.

“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.”

Closed Transactions
Of the 53 metro areas surveyed in May 2017, the general average number of home sales increased 4.3% in comparison to May 2016. Thirty-nine of the 53 metro areas experienced an increase in sales year-over-year including Albuquerque, NM +20.8%, Tulsa, OK +13.4%, Las Vegas, NV +12.2%, Honolulu, HI +11.5%, Phoenix AZ, +11.3%.

Median Sales Price – Median of 53 metro median prices
In May 2017, the median of all 53 metro Median Sales Prices was $232,500, up 2.9% from April 2017 and up 3.6% from May 2016. Fargo, ND 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, NH +13.2%, Seattle, WA +12.8%, Tampa, FL +12.8%, Las Vegas, NV +10.7% and Dallas/Fort Worth +10.7%.

Days on Market – Average of 53 metro areas
The average Days on Market for homes sold in May 2017 was 51, down six days from the average in April 2017, and down seven days from the May 2016 average. The four metro areas with the lowest Days on Market were Omaha, NE at 20, San Francisco, CA at 21, Seattle, WA at 22 and Denver, CO at 23. The highest Days on Market averages were in Augusta, ME at 136 and Burlington, VT at 98. Days on Market is the amount 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 May 2017 was down 0.6% from April 2017, and down 16.2% from May 2016. Based on the rate of home sales in May, the Months Supply of Inventory was 2.6, compared to April 2017 at 2.8 and May 2016 at 3.0. This is actually the third 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 May 2017, 52 of the 53 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. At 6.1, Miami, FL 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, CA and Seattle, WA at 0.9, and Denver, CO at 1.0 for the fourth month consecutively.

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(all data current as of 11/22/2024)

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