Buyers will have more choice as declining sales boost availability
The trend in the second half of 2018 for declining home sales and rising inventory has continued into this year.
The January 2019 RE/MAX National Housing Report - based on MLS data in approximately 54 metropolitan areas - shows that sales were down 10% year-over-year while inventory gained 6.4%, the largest increase in at least 10 years.
It was the fourth consecutive month of rising inventory and picking up the pace from December’s 4.7%, the previous record in the 10 year history of the RE/MAX report.
“The winter chill extended to the housing market in January, as home sales remained cool," said RE/MAX CEO Adam Contos. "The good news is that inventory levels in January continued to rise on a year-over-year basis, providing incremental improvement in what's been a multi-year shortage of for-sale homes. This is a positive for homebuyers, as the market continues to swing their way."
Following a year-over-year decline in December, the US median home price resumed its upward trajectory– up 4.6% year-over-year to $234,000 – but the pace slowed from 2018’s 6.7%.
Contos added that widespread price increases reflected the underlying solid demand overall and the relative health of the market.
"Furthermore, with interest rates stabilizing and home-price increases slowing, the spring selling season shapes up to be as interesting as any we have seen in years," he said.
