RE/MAX says sales just 1.1% below 2017 levels
Home sales in August were 1.1% below year-ago levels as some of the most overheated markets showed signs of returning to balance.
The latest National Housing Report from RE/MAX shows that the median price hit $248,500, the 29th consecutive month of year-over-year price rises. But the 3.7% gain compared to August 2017 was down from the 5.4% annual rise seen from August 2016 to August 2017.
Inventory was down again – for the 118th straight month – but at 5.4% (year-over-year) the decrease was the smallest since August 2014.
"It varies by market, but we're hearing that buyers are being more selective and sellers are becoming more pragmatic," said RE/MAX CEO Adam Contos. "That dynamic could bring inventory levels up, especially in the most overheated markets, where we expect to see the clearest signs of equilibrium returning.
Of the 54 metro areas surveyed the overall average number of home sales is down 0.4% compared to July 2018 and decreased 1.1% year-over-year. Twenty-two of the metros experienced increases in sales year-over-year.
The average Days on Market for homes sold in August 2018 was 43, up two days from the average in July 2018, and down 4 days from the August 2017 average.
Meanwhile, total months of supply was up to 3 from 2.9 a month earlier but down from 3.1 a year earlier.
"The economy is strong and potential buyers are out there—they just need more listings, at the right price points, to consider. We believe that balance will return, which will be good for everyone in the long run. It's just a matter of when," added Contos.
