Annual drop revealed by survey of 54 metro areas
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Rising prices and mortgage rates have impacted home sales nationwide with fewer closings and stabilizing inventory.
Sales across 54 metro areas were down 11.6% year-over-year in September according to the RE/MAX National Housing Report. It was the seventh consecutive month of year-over-year declines and was the largest decrease since May 2011.
"The big drop in September closings catches your attention. The market is clearly rebalancing as buyers and sellers continue to process the increasing interest rate environment and what that means to them," said RE/MAX CEO Adam Contos. "The slower drop in inventory – a visible trend for nearly half a year – further illustrates the ongoing shift toward market equilibrium, and that's healthy in the long-term."
Year-to-date sales are similar to those in the same period of 2017.
Median sales price hits new September high
The median Sales Price of $241,000 was up 5.6% year-over-year (down 3.2% from August 2018) and marked the 30th consecutive month of year-over-year price increases. It is the highest September price in the 10-year history of the report.
Seven metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Boise, ID, +17.9%, Manchester, NH, +13.4% and Salt Lake City, UT, +11.9%. Meanwhile, three metro areas saw a year-over-year decrease in Median Sales Price; Birmingham, AL, -2.1%, Anchorage, AK, -2.0% and Honolulu, HI, -1.7%.
"It's a little surprising to see prices staying so strong, but it's hardly shocking in such a tight market," said Contos. "The headwinds of rising prices and interest rates amid already tight inventory levels have been crimping affordability and slowing sales for most of the year, but it varies by geography."
