RE/MAX says sales set a new July record for its National Housing Report
Home sales posted a 2.4% increase in July compared to a year earlier, ending nine months of gains in inventory.
A decline in sales from June to July is expected but the decline of 0.2% last month was the smallest monthly decline since July 2013 according to the RE/MAX National Housing Report which covers 53 metros.
"July sales snapped back after a tepid June, as attractive low interest rates appear to have brought more buyers into the mix," said RE/MAX CEO Adam Contos. "The housing market has been a bit uneven since the early spring, with each encouraging month seemingly followed by one with lukewarm results. It's possible the housing market has finally shaken some mud off its boots and can maintain its momentum for the back half of the year. If the broader macro environment hangs on, we could see a potentially strong finish to 2019."
Leading the month-over-month sales percentage increase were Honolulu, HIat +11.8%, Anchorage, AK at +10.2%, and New York, NY at +9.2%.
Inventory declined 1.4% year-over-year and 2.2% month-over-month and at July’s sale pace there was 2.7 months of supply, down from 2.9 months in June.
Median price up from last year
The median sales price was down slightly from June at $273,000 but was 9.2% higher than July 2018.
Prices have gained year-over-year for seven consecutive months and have risen year-over-year in 88 of the last 90 months dating back to February 2012.
Anchorage, AK at -3.2%, Trenton, NJ at -2.1%, and San Francisco, CA at -2.0% were the only metros with a year-over-year decrease in median sales price.
Conversely there were double-digit increases for Wichita, KS at +16.7%, Cleveland, OH at +12.9%, and Cincinnati, OH at +11.7%.
"Although lower interest rates help affordability, we have now seen two straight months of accelerating price increases. If the trend continues, it's not an encouraging development for buyers," said Contos.
The average Days on Market for homes sold in July 2019 was 43, equivalent to the average in June 2019, and up two days from the July 2018 average.
