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Homebuyers had better be ready to suit up for battle.

Any buyers—or wannabe buyers—who thought last year’s meteoric jump in home prices was rough should be prepared for this spring could be even worse. A hellish trifecta of fast-rising housing prices, increasing mortgage rates, and record-low inventory of homes for sale is likely to present a brutal spring real estate market for those looking to purchase a new home.

“For the buyers, it’s going to be miserable,” predicts Mark Zandi, chief economist at Moody’s Analytics. “We’re going to see a lot fewer home sales this spring. … In many communities, they just don’t have something to sell.” Pete Veres with RE/MAX in Albuquerque states “ We have the lowest inventory ever and buyers can expect to pay 10% or even higher over list price in many cases”

The nation has been mired in a housing shortage for years, but it’s now grappling with the fewest homes for sale ever. The lack of inventory is happening at the worst possible time as more Americans are hitting their prime home-buying years—and not finding anything on the market. The COVID-19 pandemic has only accelerated the problem as buyers sought out more spacious homes.

“It’s going to be a tough market for buyers,” says Gay Cororaton, a senior economist at the National Association of Realtors®. “There are more bidders than houses out there.”

 

Buyers should expect to pay more for housing as prices continue accelerating by double digits. Last year, all-time-low mortgage rates helped to offset the higher prices. But buyers won’t find that relief this spring now that rates are at the brink of cracking 4%—adding potentially hundreds of dollars each month to a borrower’s mortgage payment.

That doesn’t mean it will be impossible to successfully purchase a home—it just won’t be easy.

The competition from other buyers could thin out a bit as more folks are priced out of homeownership. If there’s less demand, it could mean fewer (or at least less heated) bidding wars that don’t result in mind-boggling offers over the asking price.

“We’re going to see a bit more inventory and somewhat fewer home shoppers,” says Realtor.com® Chief Economist Danielle Hale. She anticipates more homes will go up for sale as the weather warms up. “But that might not be until the later part of the spring.”

Will home prices slow down or continue increasing this spring?

It would make sense that, as mortgage rates rise, home prices would fall or at least stabilize. Logic would suggest that there has to be some limit on how much buyers can afford to spend on housing. Right? Nonetheless, in the short term, instead of prices chilling out, they’ve been shooting up at a faster clip as home shoppers rushed into the market hoping to lock in a home at a low mortgage rate before rates rise even further.

As a result, already high prices leaped 12.9% from a year earlier in the week ending Feb. 19, according to the latest Realtor.com data.

“What’s unclear: Is this the last gasp?” says Len Kiefer, deputy chief economist at Freddie Mac. Price growth was cooling, but then rates began climbing. “Six months down the line … the market may soften a little bit.”

That doesn’t mean prices will fall. It would require a tsunami of newly built homes going up for sale for prices to stop their seemingly inexorable rise. And that doesn’t seem likely as builders have struggled to ramp up construction and the demand for housing just keeps growing.

Kiefer expects it will take between four and five years for it to ramp up enough to meet demand. Builders are still contending with a major shortage of workers, supply chain problems making it harder—and more expensive—to secure building materials and appliances, and inflation further boosting costs.

Normally, more homes begin to trickle onto the market after the holidays. But very little of the past two years has been “normal.” In 2021, more homes didn’t come onto the market until April, says Hale.

“We will eventually see an increase in listings, but it may be a bit later this year,” says Hale. The number of homes for sale was down 28% in January compared with the same time last year, according to Realtor.com data.

Mortgage rates are poised to keep going up

Home prices tend to hog the spotlight as buyers and sellers are generally more concerned with the sticker price than the mortgage interest rate. But not focusing on the mortgage interest rate comes with some peril, as even a fraction of a percentage point can translate into some pretty big bucks over the life of the loan.

Buyers who were pre-approved for mortgages may find that they now qualify for less. Others will be priced out of the market or forced to choose smaller homes, fixer-uppers, or properties in less desirable locations.

For example, surging rates will tack on approximately $220 a month, or $2,640 a year, onto buyers’ monthly payments as rates leaped from a low of around 2.67% in December 2020 to about 4% in February. Some experts predict they’ll continue inching up. While that may not sound drastic, it can add nearly $80,000 over the life of a 30-year fixed-rate loan. Those with larger mortgages will pay considerably more.

(This assumes buyers purchased a $375,000 home, the national median home list price, with 20% down.)

Mortgage interest rates shot up to 3.92% for 30-year fixed-rate loans in the week ending Feb. 17, according to the most recent Freddie Mac data. That’s a little higher than it was in the runup to the start of the pandemic in March 2020. Current rates are 4-4.25%.

“People who are just at the margins of being able to afford a home will think twice about buying,” says NAR’s Cororaton. “The upper-income brackets will be the ones jumping into the market. It just makes it all the harder for the lower-income folks.”

The higher rates are likely to make the inventory crunch even worse. Homeowners who locked in ultralow rates may be reluctant to sell their homes and buy new ones if their monthly housing payments will be higher thanks to those rising rates.

“If they have an interest rate under 3% … that can be a significant increase in their payment—even if they’re downsizing,” says Kiefer. “When inventory is so tight, every prospective home seller has an outsize impact on the market.”

Despite the increases, rates are still historically low. Three years ago, rates were in the mid-4% range. Twenty years ago, they were hovering in the high 6% and low 7% arena. Forty years ago, they were in the mid-17% range.

The one bright spot for buyers will be if sellers begin to cut prices as mortgage rates cut into the budgets of buyers. This could happen in some of the hottest housing markets that saw the largest price increases. But the jury’s still out on if and when this type of correction might happen.

“Mortgage rates will be both friend and foe to buyers this year,” says Hale of Realtor.com. “Monthly mortgage payments will be higher. However, those higher monthly mortgage payments are likely to knock some homebuyers out of the market. You may see somewhat less competition.”

Higher mortgage rates isn’t good news for home sellers

While it’s a great time to list a home, rising mortgage rates are expected to curtail what could have been an even bigger payday for home sellers.

 

Home sellers expecting “10 buyers lined up at the door” may be disappointed as fewer folks can afford the “stratospheric” home prices, says Moody’s Zandi. That means there may not be as many feverish bidding wars and buyers may not have the funds to go quite so high over the asking price.

Sellers will “get a good price, no doubt about it,” says Zandi. “They’re just not going to get the fortunes they thought they were going to get, because the buyers can’t afford it.”

Most sellers are also homebuyers, looking to move, buy larger abodes, or downsize. So while they may make a tidy sum selling their homes, they still need to find a home and compete in the bidding wars over it just like every other buyer.

“It’s a grind and it’s going to remain a grind,” Keifer says of this year’s real estate market. “The relief will come, but it will be slow.”

 

 

 

 

 

RE/MAX National Housing Report for January 2022

by Elite Asset Management Team

Prices Remain Steady as Home Sales Decline Seasonally and Inventory Stays Low

 

DENVER — January home sales dropped 31.4% from December’s total – a decrease slightly more than the seasonal norm – as inventory shrank for the sixth consecutive month. Year over year, sales were down 5.3% from January 2021.

A December-to-January decline in home sales is typical and expected. In the past five years (2017-2021), the average drop in home sales between the two months was 28.0%.

Across the 51 metro areas in the report, the Median Sales Price remained steady as January was the second month in a row of little-to-no month-over-month price increase. January's Median Sales Price equaled December’s $335,000, which was only $5,000 below the report’s all-time high of $340,000 set in October 2021. However, year-over year price increases remain steep as January’s price was 15.9% higher than a year ago.

Inventory remains historically low. November, December and January have each reset the mark for lowest inventory (in terms of units) in the last five years. Similarly, January’s 1.2 Months Supply of Inventory matched the low reached in May 2021. There were 1.9 months supply of inventory a year ago.

“Sellers continue to enjoy favorable conditions, but with January activity slowing a bit ahead of the peak spring selling season, the consistent run-up in prices has tapered off as well,” said Nick Bailey, President and CEO, RE/MAX, LLC. "Mortgage rates are beginning to tick up, which might actually accelerate sales as buyers and sellers rush to beat any further increases. The price stabilization of the past few months is helping counter affordability issues, and we anticipate an active spring selling season driven by continued buyer demand."

Homes spent an average of 34 days on the market in January – two more than December, but seven less than a year ago.

Highlights and the local markets leading various metrics for January include:

Closed Transactions 
Of the 51 metro areas surveyed in January 2022, the overall average number of home sales is down 31.4% compared to December 2021, and down 5.3% compared to January 2021. The markets with the biggest decrease in year-over-year sales percentage were San Francisco, CA at -24.2%, Manchester, NH at -18.0%, and Seattle, WA at -17.5%. Leading the year-over-year sales percentage increase were Honolulu, HI at +25.7%, Boise, ID at +10.4%, and Tulsa, OK at +5.8%.

Median Sales Price – Median of 51 metro median prices
In January 2022, the median of all 51 metro Median Sales Prices was $335,000, flat compared to December 2021, and up 15.9% from January 2021. No metro areas saw a year-over-year decrease in Median Sales Price. Thirty-five metro areas increased year-over-year by double-digit percentages, led by Phoenix, AZ at +28.5%, Raleigh-Durham, NC at +28.4%, and Salt Lake City, UT at +26.7%.

Days on Market – Average of 51 metro areas
The average Days on Market for homes sold in January 2022 was 34, up two days from the average in December 2021, and down seven days from the average in January 2021. The metro areas with the lowest Days on Market were Nashville, TN at 16, Cincinnati, OH at 18, and a two-way tie between Omaha, NE and Manchester, NH at 20. The highest Days on Market averages were in Des Moines, IA at 94, Miami, FL at 77, and Albuquerque, NM at 75. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 51 metro areas
The number of homes for sale in January 2022 was down 11.9% from December 2021 and down 32.1% from January 2021. Based on the rate of home sales in January 2022, the Months Supply of Inventory decreased to 1.2 compared to 1.4 in December 2021, and decreased compared to 1.9 in January 2021. A six-months supply indicates a market balanced equally between buyers and sellers. In January 2022, of the 51 metro areas surveyed, zero metro areas reported a months supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory were Denver, CO at 0.4, and a three-way tie between Charlotte, NC, Seattle, WA, and Raleigh-Durham, NC at 0.5.

 

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood. And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker,CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com

Cell: 505-362-2005

 

 

 

 

 

 

RE/MAX National Housing Report for December 2021

by Elite Asset Management Team

Strong December Caps 2021 As Busiest Home-Buying Year in Report History

 

 

DENVER — Near-record December home sales cemented 2021 as the busiest year for home buying in the 14-year history of the report, while also setting records for smallest inventory and highest average home prices. On an annual basis, 2021 finished with nearly 10% more home sales than the previous record year of 2020.

Across the 51 metro areas in the report, December 2021 home sales were the second highest for the month in report history, trailing only December 2020. Despite the strength in home sales, December sales defied recent month-over-month moves. December 2021 home sales were actually down 0.8% from November, which had an unusually high total. In contrast, the November-to-December average change for the five-year period from 2015-2019 was an increase of 3.5%.

“December capped a fantastic year for home sales. After a busy 2020, we expected 2021 to be even better – and it was,” said Nick Bailey, President and CEO, RE/MAX, LLC. “Buyers shrugged off all sorts of potential obstacles – high prices, record-low inventory, stiff competition for available listings – and kept things rolling the entire year.”

“The story of housing in 2021 was centered around high demand that led to a substantial increase in sales despite ultra-low supply. What’s promising for 2022 is that many of the factors which drove record sales in 2021 remain in place. Interest rates are still attractive, workplace flexibility continues, and many homeowners are sitting on a mountain of equity. If more of them become sellers, there’s ample reason to think the hot streak will continue. The past two years have proven that buyers are out there and ready to go.”

December home transactions could have been even stronger had it not been for record-low inventory. The year 2021 ended with the smallest number of homes for sale in the 14-year history of the report. December inventory dropped 23.6% from November – the previous record low – and 33.3% year over year. The 10 months with the lowest inventory in report history all occurred in 2021.

December’s 1.2 Months Supply of Inventory was an all-time low and tied the report record set in May 2021. There were two months supply of inventory a year ago. Homes spent an average of 31 days on the market in December – two more than November, but seven less than a year ago.

At the same time, December’s Median Sales Price of $335,000 was up 1.4% over November and 11.5% year over year. The November-to-December increase is slightly higher than the 1.2% average for the five-year period from 2015-2019. While the highest average sale price of the year typically is reached in early or mid-summer, October’s $340,000 was the highest in 2021 and in report history.

Highlights and the local markets leading various metrics for December include:

Closed Transactions 
Of the 51 metro areas surveyed in December 2021, the overall average number of home sales is down 0.8% compared to November 2021, and down 6.9% compared to December 2020. The markets with the biggest decrease in year-over-year sales percentage were San Francisco, CA at -21.9%, Manchester, NH at -17.6%, and Atlanta, GA at -17.1%. Leading the year-over-year sales percentage increase were Wilmington/Dover, DE at +8.9%, Billings, MT at +8.3%, and Boise, ID at +8.2%.

Median Sales Price – Median of 51 metro median prices
In December 2021, the median of all 51 metro Median Sales Prices was $335,000, up 1.4% compared to November 2021, and up 11.5% from December 2020. No metro areas saw a year-over-year decrease in Median Sales Price while 32 metro areas increased year-over-year by double-digit percentages, led by Phoenix, AZ at +28.4%, Tampa, FL at +25.7%, and Raleigh-Durham, NC at +25.3%.

Days on Market – Average of 51 metro areas
The average Days on Market for homes sold in December 2021 was 31, up two days from the average in November 2021, and down seven days from the average in December 2020. The metro areas with the lowest Days on Market were Nashville, TN at 13, Cincinnati, OH at 16, and Omaha, NE at 18. The highest Days on Market averages were in Des Moines, IA at 92, Miami, FL at 76, and New York, NY at 71. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Months Supply of Inventory – Average of 51 metro areas
The number of homes for sale in December 2021 was down 23.6% from November 2021 and down 33.3% from December 2020. Based on the rate of home sales in December 2021, the Months Supply of Inventory decreased to 1.2 compared to 1.4 in November 2021, and decreased compared to 2.0 in December 2020. A six months supply indicates a market balanced equally between buyers and sellers. In December 2021, of the 51 metro areas surveyed, zero metro areas reported a months supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory were Salt Lake City, UT at 0.4, and a three-way tie between Albuquerque, NM, Denver, CO, and Seattle, WA at 0.5.

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood. And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker,CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com

Cell: 505-362-2005

RE/MAX National Housing Report for November 2021

by Elite Asset Management Team

Median Price Drops 3% Amid Seasonally Cooling Home Sales and Record Low Inventory

 

 

DENVERDec. 17, 2021 /PRNewswire/ -- The historically strong housing market continued to surge forward in November, as buyers gobbled up available homes seemingly as soon as they hit the market. Buyers finally saw some welcome relief on prices, with November's Median Sales Price dropping 2.9% to $330,000 – the largest monthly decline since the pandemic began. And home sales declined only 4.9% from October, far less than the normal seasonal decrease of 12.0% this time of year. Adding to the complex conditions, the number of homes for sale fell to a new low in the 14-year history of the report, declining 17.7% from October.

Overall, November generally followed seasonal trends while at the same time setting records for the month of November in almost every category, such as the fewest average number of days homes were listed before selling. While November's average of 29 days was two more than October's, it was only the sixth month in report history with an average below 30. All six months have occurred consecutively, starting with June 2021.

"The market is roaring along, with only half the seasonal slowdown we typically see from October to November," said Nick Bailey, President, RE/MAX, LLC. "The small drop in prices is great news for buyers, and it could be an early sign of some balance coming back into the market.

"The lack of available inventory continues to be a challenge, but 2021 has been a very strong year for home sales. That says a lot about the resiliency of the housing market and the importance of homeownership in people's lives. With work flexibility, low interest rates, generational factors and continued high demand, we're heading into 2022 with plenty of reasons to be optimistic."

November's Median Sales Price across the report's 51 metro areas dropped $10,000 below October's $340,000, falling 2.9%. That was the largest month-to-month drop since January 2020, when the median price declined 3.4%. And while price drops are typical in January, they are unusual in November. Based on report averages for the five-year period from 2015-2019 (excluding 2020 because of pandemic impacts), the median November price rose an average of 0.9%.

Other comparisons of note for the month of November 2021 relative to trends from 2015-2019 include:

  • The five-year average for October-to-November home sales is a decline of 12.0%, more than twice the drop of 4.9% in November 2021.
  • The five-year average for October-to-November inventory is a decline of 8.9%, slightly over half of the drop of 17.7% in November 2021.
  • After dropping in January, prices typically rise each month from February through June, then decline each month from July through October. They generally rebound slightly in November and December. The first nine months of 2021 followed the 2015-2019 pattern before October posted an unusual 0.8% price increase, followed by November's uncommon decline.

Despite declining month over month, November's median home price was 11.9% higher than November 2020's $295,000 and marks the 35th consecutive month that home prices have risen year over year.

The 1.2 Months Supply of Inventory in November dropped from October's 1.4 and was only 0.1 of a month more than the report record of 1.1 set in March and matched in April, May and June.

Highlights and the local markets leading various metrics for November include:

Closed Transactions 
Of the 51 metro areas surveyed in November 2021, the overall average number of home sales is down 4.9% compared to October 2021, and down 0.1% compared to November 2020. The markets with the biggest decrease in year-over-year sales percentage were Billings, MT at -13.0%, San Antonio, TX at -11.4%, and San Diego, CA at -11.0%. Leading in year-over-year sales percentage increase were Honolulu, HI at +31.5%, Tulsa, OK at +13.4%, and Wilmington/Dover, DE at +12.7%.

Closed Transactions:
5 Markets with the Biggest YoY Decrease

Market

Nov 2021
Transactions

Nov 2020
Transactions

Year-over-Year
% Change

Billings, MT

248

285

-13.0%

San Antonio, TX

2,782

3,140

-11.4%

San Diego, CA

2,876

3,230

-11.0%

Birmingham, AL

1,476

1,618

-8.8%

New York, NY

2,789

3,026

-7.8%

Median Sales Price – Median of 51 metro median prices
In November 2021, the median of all 51 metro Median Sales Prices was $330,000, down 2.9% compared to October 2021, and up 11.9% from November 2020. No metro areas saw a year-over-year decrease in Median Sales Price. Thirty-nine metro areas increased year-over-year by double-digit percentages, led by Phoenix, AZ at +27.2%, Salt Lake City, UT at +25.3%, and Boise, ID at +24.8%.

Median Sales Price:
5 Markets with the Biggest YoY Increase

Market

Nov 2021
Median Sales
Price

Nov 2020
Median Sales
Price

Year-over-Year
% Change

Phoenix, AZ

$425,000

$334,173

+27.2%

Salt Lake City, UT

$487,250

$388,750

+25.3%

Boise, ID

$475,581

$381,000

+24.8%

Raleigh-Durham, NC

$390,000

$315,000

+23.8%

Atlanta, GA

$354,000

$286,500

+23.6%

Days on Market – Average of 51 metro areas
The average Days on Market for homes sold in November 2021 was 29, up two days from the average in October 2021, and down 8 days from the average in November 2020. The metro areas with the lowest Days on Market were Nashville, TN at 12, and a tie between Omaha, NE and Cincinnati, OH at 16. The highest Days on Market averages were in Des Moines, IA at 86, Miami, FL at 78, and New York, NY at 69. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Days on Market:
5 Markets with the Biggest YoY Decrease

Market

Nov 2021
Days on Market

Nov 2020
Days on Market

Year-over-Year
% Change

Raleigh-Durham, NC

20

37

-45.9%

Honolulu, HI

28

49

-42.9%

Nashville, TN

12

20

-40.3%

Tampa, FL

24

40

-40.0%

Billings, MT

23

38

-39.5%

Months Supply of Inventory – Average of 51 metro areas
The number of homes for sale in November 2021 was down 17.7% from October 2021 and down 30.1% from November 2020. Based on the rate of home sales in November 2021, the Months Supply of Inventory decreased to 1.2 compared to 1.4 in October 2021, and decreased compared to 2.1 in November 2020. A six months supply indicates a market balanced equally between buyers and sellers. In November 2021, of the 51 metro areas surveyed, zero metro areas reported a months supply at or over six, which is typically considered a buyer's market. The markets with the lowest Months Supply of Inventory were a tie between Denver, CO and Seattle, WA at 0.5, and another tie between Albuquerque, NM and Manchester, NH at 0.6.

Months Supply of Inventory:
5 Markets with the Biggest YoY Decrease

Market

Nov 2021
Months Supply of Inventory

Nov 2020
Months Supply of Inventory

Year-over-Year
% Change

Hartford, CT

0.8

2.6

-69.2%

Miami, FL

2.1

6.8

-69.1%

Albuquerque, NM

0.6

1.9

-68.4%

Providence, RI

1.0

3.1

-67.7%

Orlando, FL

0.9

2.2

-59.1%

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood. And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker,CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com

Cell: 505-362-2005

RE/MAX National Housing Report for October 2021

by Elite Asset Management Team

October Homes Sales See Atypical Drop, Squeezed by High Median Price, Record-Low Inventory

 

 

 

DENVERNov. 18, 2021 /PRNewswire/ -- Pinched between a steep median sales price of $336,000 and record low inventory, October home sales tumbled 6.4% from September – almost double the typical seasonal decline. September had near-record sales, which also contributed to the steepness of the month-over-month sales decrease.

October's inventory dropped 12.7% from September to the fifth-lowest level in the report's 14-year history, and October's 1.3 Months Supply of Inventory tied for second lowest in report history, alongside July and August of this year.

"We're seeing the effects of a long, sustained run-up in prices and month-over-month home sales and the market may be moving past the days of immediate sales, multiple offers and bidding wars on virtually every property," said Nick Bailey, President, RE/MAX, LLC. "That's OK. The October dip in sales, especially after such a busy September, is a step toward a more balanced market and was somewhat overdue.

"Home buyers may see some relief in price appreciation during the coming months, even as sales levels stay high. Sellers remain in a very strong position, but with price stabilization and the continuation of competitive interest rates, buyers may find the coming months to be more advantageous than anytime earlier this year."

September-to-October averages for 2015-2019 illustrate what's typical in the fall. With just two months of home sales remaining, the fall of 2021 is mirroring seasonal norms in many ways, unlike 2020, but the lack of inventory amid strong demand is exacerbating those moves. For example, the drop in home sales of 6.4% from September was nearly twice the 2015-2019 average decline of 3.3%. Year over year, sales were down 10.2%.

Also, reflecting both the number of homes coming on the market and the speed of sales, the 12.7% month-over-month drop in active inventory was more than double the 2015-2019 September-to-October average decline of 5.3%. Inventory was down 28% year-over-year and has declined month over month in all but June and July this year.

One exception is the Median Sales Price, which rose 0.8% from September, in contrast to the average September-to-October drop of 1.3% in 2015-2019. The Median Sales Price is up 11.8% over October 2020. October's Median Sales Price of $336,000 tied the record set in June 2021. Home prices have now increased year over year for 34 consecutive months.

Highlights and the local markets leading various metrics for October include:

Closed Transactions 
Of the 51 metro areas surveyed in October 2021, the overall average number of home sales is down 6.4% compared to September 2021, and down 10.2% compared to October 2020. The markets with the biggest decrease in year-over-year sales percentage were Birmingham, AL at -32.1%, Billings, MT at -30.0%, and Providence, RI at -21.5%.   Leading the year-over-year sales percentage increase were Honolulu, HI at +16.7% and Wilmington/Dover, DE at +1.4.

Closed Transactions:
5 Markets with the Biggest YoY Decrease

Market

Oct 2021
Transactions

Oct 2020
Transactions

Year-over-
Year %
Change

Birmingham, AL

1,431

2,108

-32.1%

Billings, MT

250

357

-30.0%

Providence, RI

1,198

1,526

-21.5%

Boston, MA

4,059

4,955

-18.1%

Wichita, KS

912

1,101

-17.2%

Median Sales Price – Median of 51 metro median prices
In October 2021, the median of all 51 metro Median Sales Prices was $336,000, up 0.8% compared to September 2021, and up 11.8% from October 2020. No metro areas saw a year-over-year decrease in Median Sales Price. Thirty metro areas increased year-over-year by double-digit percentages, led by Boise, ID at +29.6%, Phoenix, AZ at +25.4%, and Salt Lake City, UT at +23.4.

Median Sales Price:
5 Markets with the Biggest YoY Increase

Market

Oct 2021
Median Sales
Price

Oct 2020
Median Sales
Price

Year-over-
Year %
Change

Boise, ID

$479,900

$370,423

+29.6%

Phoenix, AZ

$420,000

$335,000

+25.4%

Salt Lake City, UT

$475,000

$385,000

+23.4%

Raleigh-Durham, NC

$381,250

$310,000

+23.0%

Tampa, FL

$317,048

$260,000

+21.9%

Days on Market – Average of 51 metro areas
The average Days on Market for homes sold in October 2021 was 27, up one day from the average in September 2021, and down 11 days from the average in October 2020. The metro areas with the lowest Days on Market were Nashville, TN at 11, Omaha, NE at 13, and Cincinnati, OH at 14. The highest Days on Market averages were in Des Moines, IA at 84, Miami, FL at 75, and New York, NY at 63. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Days on Market:
5 Markets with the Biggest YoY Decrease

Market

Oct 2021
Days on
Market

Oct 2020
Days on
Market

Year-over-
Year %
Change

Raleigh-Durham, NC

17

36

-52.8%

Nashville, TN

11

21

-46.4%

Birmingham, AL

17

32

-46.3%

Orlando, FL

27

50

-46.0%

Tampa, FL

23

42

-45.2%

Months Supply of Inventory – Average of 51 metro areas
The number of homes for sale in October 2021 was down 12.7% from September 2021 and down 28.0% from October 2020. Based on the rate of home sales in October 2021, the Months Supply of Inventory decreased to 1.3 compared to 1.5 in September 2021, and decreased compared to 1.9 in October 2020. A six months supply indicates a market balanced equally between buyers and sellers. In October 2021, of the 51 metro areas surveyed, zero metro areas reported a months supply at or over six, which is typically considered a buyer's market. The markets with the lowest Months Supply of Inventory were a three-way tie between Albuquerque, NMRaleigh-Durham, NC, and Seattle, WA at 0.6.

Months Supply of Inventory:
5 Markets with the Biggest YoY Decrease

Market

Oct 2021
Months
Supply of
Inventory

Oct 2020
Months
Supply of
Inventory

Year-over-
Year %
Change

Albuquerque, NM

0.6

1.9

-68.4%

Hartford, CT

0.8

2.5

-68.0%

Miami, FL

2.0

6.1

-67.2%

Providence, RI

1.1

2.8

-60.7%

Orlando, FL

0.9

2.1

-57.1%

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood. And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker,CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com

Cell: 505-362-2005

RE/MAX National Housing Report for September 2021

by Elite Asset Management Team

September Home Sales Down Slightly as Inventory Challenges Persist

 

 

 

DENVEROct. 18, 2021 /PRNewswire/ -- With three-quarters of the year complete, 2021 is mirroring seasonal norms, unlike 2020, but maintaining strong momentum. September home sales dropped 7.0% from August's total and the Median Sales Price slipped 1.1% to $329,000 – both far less than the typical drop-offs as summer gives way to fall.

"This was the second-most active September for sales in 14 years, trailing only 2020, which was an outlier in many ways," said Nick Bailey, President, RE/MAX, LLC. "Plus, the expected seasonal drop in sales from August to September was half of what it usually is, indicating that buyers and sellers are still very much on the move.

"The intensity on the buy side has been exhausting, but buyers can navigate the ups and downs with the help of a full-time, experienced professional. Affordability remains a challenge in most metros, where tight inventory continues to push prices. Homebuilders are trying to fill the gap – especially with multi-family home construction – but many of them are held up by shortages in labor and materials. That said, the market's still active – just not quite at the pace we saw earlier this year."

With abnormally high second-half home sales in 2020 skewing year-over-year comparisons, August-to-September averages for 2015-2019 illustrate what's typical in late summer-early fall:

  • The drop in home sales of 7.0% from August was less than half of the 2015-2019 average decline of 15.3%. Year over year, sales were down 4.2%.
  • The month-over-month Median Sales Price decline of 1.1% was one-third of the 2015-2019 average August-to-September drop of 3.4%. Year over year, the Median Sales Price is up 12.5%, with September being the fourth highest in report history. Home prices have increased year over year for 33 consecutive months.
  • Reflecting both the number of homes coming on the market and the velocity of sales, the 4.9% month-over-month drop in active inventory was more than double the 2015-2019 average August-to-September decline of 2.3%. Inventory was down 23.6% year-over-year. Nine months into 2021, inventory has declined month over month in all but June and July.

September's average Days on Market of 25 was one day more than August and reflected sales that were 14 days faster, on average, than in September 2020. The 1.5 Months Supply of Inventory in September was an increase over August's 1.4, but was below September 2020's 2.0 Months Supply.

Highlights and the local markets leading various metrics for September include:

Closed Transactions 
Of the 52 metro areas surveyed in September 2021, the overall average number of home sales is down 7.0% compared to August 2021, and down 4.2% compared to September 2020.  Leading the year-over-year sales percentage increase were Honolulu, HI at +22.5%, Wilmington/Dover, DE at +9.4%, and Orlando, FL at +6.8%. The markets with the biggest decrease in year-over-year sales percentage were New Orleans, LA at -40.2%, Burlington, VT at -19.0%, and Salt Lake City, UT at -14.9%. 

Closed Transactions:
5 Markets with the Biggest YoY Decrease

Market

Sep 2021
Transactions

Sep 2020
Transactions

Year-over-
Year %
Change

New Orleans, LA

1,001

1,674

-40.2%

Burlington, VT

294

363

-19.0%

Salt Lake City, UT

1,568

1,842

-14.9%

Omaha, NE

850

989

-14.1%

Boise, ID

1,756

2,033

-13.6%

Median Sales Price – Median of 52 metro median prices
In September 2021, the median of all 52 metro Median Sales Prices was $329,000, down 1.1% compared to August 2021, and up 12.5% from September 2020. No metro areas saw a year-over-year decrease in Median Sales Price. Thirty-one metro areas increased year-over-year by double-digit percentages, led by Boise, ID at +28.8%, Salt Lake City, UT at +27.3%, and Phoenix, AZ at +24.5%.

Median Sales Price:
5 Markets with the Biggest YoY Increase

Market

Sep 2021
Median Sales
Price

Sep 2020
Median Sales
Price

Year-over-
Year %
Change

Boise, ID

$476,587

$369,990

+28.8%

Salt Lake City, UT

$490,000

$385,000

+27.3%

Phoenix, AZ

$411,000

$330,000

+24.5%

Raleigh-Durham, NC

$375,000

$310,500

+20.8%

Tampa, FL

$316,382

$264,000

+19.8%

Days on Market – Average of 52 metro areas
The average Days on Market for homes sold in September 2021 was 25, up one day from the average in August 2021, and down 14 days from the average in September 2020. The metro areas with the lowest Days on Market were Nashville, TN at 10, Cincinnati, OH at 12, and Omaha, NE at 14. The highest Days on Market averages were in Des Moines, IA at 83, followed by a two-way tie between Miami, FL and New York, NY at 60. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Days on Market:
5 Markets with the Biggest YoY Decrease

Market

Sep 2021
Days on
Market

Sep 2020
Days on
Market

Year-over-
Year %
Change

Raleigh-Durham, NC

18

41

-56.1%

Billings, MT

16

36

-55.6%

Tampa, FL

21

46

-54.3%

Nashville, TN

10

22

-52.0%

New Orleans, LA

25

50

-50.0%

Months Supply of Inventory – Average of 52 metro areas
The number of homes for sale in September 2021 was down 4.9% from August 2021 and down 23.6% from September 2020. Based on the rate of home sales in September 2021, the Months Supply of Inventory increased to 1.5 compared to 1.4 in August 2021 and decreased compared to 2.0 in September 2020. A six months supply indicates a market balanced equally between buyers and sellers. In July 2021, of the 52 metro areas surveyed, zero metro areas reported a months supply at or over six, which is typically considered a buyer's market. The markets with the lowest Months Supply of Inventory were Albuquerque, NM at 0.6, followed by a three-way tie between Raleigh-Durham, NCCharlotte, NC, and Seattle, WA at 0.7.

Months Supply of Inventory:
5 Markets with the Biggest YoY Decrease

Market

Sep 2021
Months
Supply of

Inventory

Sep 2020
Months
Supply of
Inventory

Year-over-
Year %
Change

Albuquerque, NM

0.6

2.0

-70.0%

Hartford, CT

1.0

2.5

-60.0%

Providence, RI

1.2

2.8

-57.1%

Orlando, FL

1.0

2.2

-54.5%

Honolulu, HI

1.6

3.2

-50.0%

Raleigh-Durham, NC

0.7

1.4

-50.0%

*Honolulu & Raleigh-Durham are tied for 5th largest decrease YoY

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood. And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker,CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com

Cell: 505-362-2005

Why This Fall May Be a Big Opportunity for Buyers

by Elite Asset Management Team

 

The housing market has been fiercely competitive over the last few months, but hopeful buyers who keep getting shut out may soon find better luck. Several signs in the housing market point to a potential opening to buy this fall, housing analysts say.

For one, competition is reportedly cooling and listings are receiving fewer offers. In September, the real estate brokerage Redfin reported that bidding wars reached their lowest level this year.

Also, more listings are coming to market, offering buyers more choices. A recent realtor.com® report shows housing inventory is at a high for 2021. Nearly one-third of the 50 largest metros saw increases in the number of newly listed homes compared to last year.

“This September, buyers had more options than they’ve had all year and while that’s typical of early fall, that’s not what happened in 2020,” says Danielle Hale, realtor.com®’s chief economist. “Still, it’s important to remember that while buyers may have an easier time this fall than they did in the spring, the market remains more competitive than it has been historically at this time of year.”

There are still fewer homes for sale than a year ago, and less than half as many two years ago before the pandemic, Hale says.

 

Hopeful buyers will want to watch days on the market to indicate whether now could be a better time to buy. Buyers will also want to keep an eye out for the median days on the market for neighborhoods, cities, and metro areas, Terri Robinson, a real estate professional with RE/MAX Distinctive in Ashburn, Va., told NerdWallet. “If things are staying on the market a little longer versus staying for a couple of days then it might be time for [buyers] to get back in the market,” Robinson says.

Robinson says home inspectors also are reporting to her that the demand for walk-and-talks is lessening. A walk-and-talk is an abbreviated home inspection that is completed while a potential buyer is viewing the property. Many home buyers have been waiving formal home inspections to try to compete in the market from multiple offers. But fewer home buyers waiving home inspections “indicates that sellers are more amenable now to a buyer coming in and asking for a home inspection, so that’s good news for buyers,” Robinson told NerdWallet.

We are also starting to see the same here in the Greater Albuquerque Area. Our average days on market is about 13 days, average sales price has dropped at bit from $343,498 in Aug 2021 to $340,831.00 in Sept 2021.

Potential buyers will never be able to wait out the market perfectly. “If you’re trying to wait for the perfect time, I feel like you’re going to sit and wait forever,” Rob Heck, head of origination at the online mortgage broker Morty, told NerdWallet.

RE/MAX National Housing Report for August 2021

by Elite Asset Management Team

Dips in Home Sales and Prices Mirror Traditional Late-Summer Moves

 

DENVERSept. 17, 2021 /PRNewswire/ -- August home sales dropped 3.5% from July's total – and the Median Sale Price slipped 1.2% to $335,000 – as seasonal norms signaled that 2021's busiest homebuying and selling months are probably behind us. Despite these drops, August still almost broke records for home sales signaling a still-hot market.

August's low number of Days on Market (24) and meager Months Supply of Inventory (1.3) reversed two months of inventory gains as strong demand amid tight inventory conditions persisted.

"The slight seasonal decline in home sales from July to August was countered by this being the second-highest August sales total in the 13-year history of our report. So, although we appear to be past the blistering summer peak, the market is still very active," says Nick Bailey, President, RE/MAX, LLC. "In fact, the drop in home prices might signal to potential sellers that it's time to get off the fence in case they fall further, which in turn could draw more buyers back into the mix. In any case, it seems likely that the combination of super-quick sales and a severe lack of inventory will be with us for the foreseeable future."

With year-over-year comparisons skewed by the pandemic, July-to-August averages for 2015-2019 illustrate what's typical in late summer:

  • The month-over-month decline of 1.2% in August's Median Sales Price compares with the 2015-2019 average July-to-August drop of 1.0%. Year over year, the Median Sales Price is up 13.2%.
  • The 6.2% month-over-month drop in active inventory was nearly double the 2015-2019 average July-to-August decline of 3.3%. Inventory is down 26.7% year-over-year. 
  • Home sales dropped 3.5% from July, compared to the 2015-2019 average decline of 2.1%. However, August home sales were one of the largest totals of any month in the 13-year history of the report and the second-largest for the month and year over year, sales were up 0.6%.

August's average Days on Market of 24 was one day more than July and reflected sales that were 18 days faster, on average, than in August 2020. The Months Supply of Inventory in August of 1.3 declined from July's 1.5 and was significantly less than August 2020's 1.9 Months Supply.

Highlights and the local markets leading various metrics for August include:

Closed Transactions 

Of the 51 metro areas surveyed in August 2021, the overall average number of home sales is down 3.5% compared to July 2021, and up 0.6% compared to August 2020.  Leading the year-over-year sales percentage increase were New York, NY at +55.1%, Honolulu, HI at +37.3%, and Las Vegas, NV at +12.5%.

Closed Transactions:
5 Markets with the Biggest YoY Increase

Market

Aug 2021
Transactions

Aug 2020
Transactions

Year-over-
Year %
Change

New York, NY

3,799

2,450

+55.1%

Honolulu, HI

1,098

800

+37.3%

Las Vegas, NV

4,101

3,646

+12.5%

Seattle, WA

7,415

6,725

+10.3%

Richmond, VA

1,885

1,743

+8.1%

Median Sales Price – Median of 51 metro median prices

In August 2021, the median of all 51 metro Median Sales Prices was $335,000, down 1.2% compared to July 2021, and up 13.2% from August 2020. No metro areas saw a year-over-year decrease in Median Sales Price. Thirty-six metro areas increased year-over-year by double-digit percentages, led by Boise, ID at +30.6%, Phoenix, AZ at +24.9%, and Salt Lake City, UT at +22.3%.

Median Sales Price:
5 Markets with the Biggest YoY Increase

Market

Aug 2021
Median Sales
Price

Aug 2020
Median Sales
Price

Year-over-
Year %
Change

Boise, ID

$476,005

$364,423

+30.6%

Phoenix, AZ

$405,950

$325,000

+24.9%

Salt Lake City, UT

$471,000

$385,000

+22.3%

Billings, MT

$328,450

$270,000

+21.6%

Las Vegas, NV

$375,000

$309,000

+21.4%

Days on Market – Average of 51 metro areas

The average Days on Market for homes sold in August 2021 was 24, up one day from the average in July 2021, and down 18 days from the average in August 2020. The metro areas with the lowest Days on Market were a two-way tie between Cincinnati, OH and Nashville, TN at 10, and Omaha, NE at 13. The highest Days on Market averages were in Des Moines, IA at 83, Miami, FL at 67, and New York, NY at 57. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Days on Market:
5 Markets with the Biggest YoY Decrease

Market

Aug 2021
Days on
Market

Aug 2020
Days on
Market

Year-over-
Year %
Change

Raleigh-Durham, NC

16

44

-63.6%

Las Vegas, NV

16

45

-63.3%

Billings, MT

19

51

-62.7%

Tampa, FL

20

51

-60.8%

Augusta, ME

30

76

-60.5%

Months Supply of Inventory – Average of 51 metro areas

The number of homes for sale in August 2021 was down 6.2% from July 2021 and down 26.7% from August 2020. Based on the rate of home sales in August 2021, the Months Supply of Inventory decreased to 1.3 compared to 1.5 in July 2021, and decreased compared to 1.9 in August 2020. A six months supply indicates a market balanced equally between buyers and sellers. In August 2021, of the 51 metro areas surveyed, zero metro areas reported a month's supply at or over six. The markets with the lowest Months Supply of Inventory included a five-way tie among Albuquerque, NMRaleigh-Durham, NCSeattle, WADenver, CO, and Charlotte, NC at 0.6.

Months Supply of Inventory:
5 Markets with the Biggest YoY Decrease

Market

Aug 2021
Months
Supply of
Inventory

Aug 2020
Months
Supply of
Inventory

Year-over-
Year %
Change

Albuquerque, NM

0.6

1.9

-68.4%

Providence, RI

1.0

2.8

-64.3%

Hartford, CT

0.9

2.5

-64.0%

Orlando, FL

0.9

2.1

-57.1%

Raleigh-Durham, NC

0.6

1.3

-53.8%

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood. And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker,CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com

Cell: 505-362-2005

RE/MAX National Housing Report July 2021

by Elite Asset Management Team

Inventory Grows from June While Home Prices, Sales Take Seasonal Dip

 

 

 

DENVERAug. 17, 2021 /PRNewswire/ -- July inventory uncharacteristically climbed 4.0% from June, marking the first two consecutive months of month-over-month inventory gains since April and May 2019. At the same time, July's 1.3 Months of Inventory set a new report low for the month. July home sales were the third largest total in the report's 13-year history, although they declined 8.4% from June – a seasonal norm. The July median home price of $331,000 decreased 1.2% from June's record $335,000.

"The month-over-month gain in inventory, extending a short trend that started in June, was great news – even though the shortage of listings remains a major challenge," says Nick Bailey, President, RE/MAX, LLC. "Some buyers have stepped away in light of high prices, seller expectations, multiple offers and intense competition, but new listings are still selling quickly. Clearly, the demand is still there. The market should continue to run hot, especially if interest rates remain low, prices stabilize a bit, and more sellers jump in to take advantage." 

With year-over-year comparisons skewed by the pandemic, June-to-July averages for 2015-2019 illustrate what's typical in mid-summer:

  • The month-over-month decline of 1.2% in July's Median Sales Price was less than the 2015-2019 average June-to-July drop of 2.2%. Year over year, the Median Sales Price is up 16.2%.
  • The 4.0% increase in month-over-month inventory was atypical for this time of year – and a far cry from the 2015-2019 average June-to-July decline of 1.6%. Although this marked the second consecutive month of gain (June inventory grew 1.9% from May), inventory remains down 29.7% year-over-year.
  • The third largest total in the 13-year history of the report, July 2021 home sales dropped 8.4% – nearly identical to the 2015-2019 average decline of 8.2%. Year over year, sales were down 3.1%. The only months with more sales than July 2021 were June 2021 and July 2020.

Bailey continues: "In the past 13 months, we've seen the top three months of sales activity in 13 years of doing this report. That says a lot about today's buyers. Given all the factors favoring sellers right now, it's the buyers who are driving this very active market."

July's average Days on Market of 23 was one day less than June and 21 days faster compared to the same time last year. July's 1.3 Months Supply of Inventory was identical to June's, but significantly less than July 2020's 2.0 Months Supply.

Highlights and the local markets leading various metrics for July include:

Closed Transactions 
Of the 53 metro areas surveyed in July 2021, the overall average number of home sales is down 8.4% compared to June 2021, and down 3.1% compared to July 2020.  Leading the year-over-year sales percentage decrease were Salt Lake City, UT at -22.5%, Dallas/Ft. Worth, TX at -20.8%, and Boise, ID at -20.3%.

Closed Transactions:

5 Markets with the Biggest YoY Decrease

Market

July 2021

Transactions

July 2020

Transactions

Year-over-
Year %
Change

Salt Lake City, UT

1,599

2,064

-22.5%

Dallas/Ft Worth, TX

10,055

12,701

-20.8%

Boise, ID

1,829

2,294

-20.3%

Detroit, MI

4,905

6,097

-19.6%

Pittsburgh, PA

2,829

3,433

-17.6%

Median Sales Price – Median of 53 metro median prices
In July 2021, the median of all 53 metro Median Sales Prices was $331,000, down 1.2% compared to June 2021, and up 16.2% from July 2020. No metro areas saw a year-over-year decrease in Median Sales Price. Forty-five metro areas increased year-over-year by double-digit percentages, led by Boise, ID at +35.7%, Phoenix, AZ at +28.2%, and Augusta, ME at +24.0%.

Median Sales Price:

5 Markets with the Biggest YoY Increase

Market

July 2021

Median Sales
Price

July 2020

Median Sales
Price

Year-over-
Year %
Change

Boise, ID

$475,000

$350,000

+35.7%

Phoenix, AZ

$405,000

$316,000

+28.2%

Augusta, ME

$261,000

$210,500

+24.0%

Salt Lake City, UT

$475,000

$384,000

+23.7%

Burlington, VT

$387,500

$315,000

+23.0%

Days on Market – Average of 53 metro areas
The average Days on Market for homes sold in July 2021 was 23, down one day from the average in June 2021, and down 21 days from the average in July 2020. The metro areas with the lowest Days on Market were Cincinnati, OH at 9, Nashville, TN at 10, and Omaha, NE at 11. The highest Days on Market averages were in Miami, FL at 76, Des Moines, IA at 75, and New York, NY at 63. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Days on Market:

5 Markets with the Biggest YoY Decrease

Market

July 2021

Days on
Market

July 2020

Days on
Market

Year-over-
Year %
Change

Burlington, VT

21

61

-65.1%

Boise, ID

13

37

-64.9%

Raleigh-Durham, NC

17

47

-63.8%

Tampa, FL

20

55

-63.6%

Cincinnati, OH

9

24

-62.0%

Months Supply of Inventory – Average of 53 metro areas
The number of homes for sale in July 2021 was up 4.0% from June 2021 and down 29.7% from July 2020. Based on the rate of home sales in July 2021, the Months Supply of Inventory was flat at 1.3 compared to June 2021 and decreased compared to 2.0 in July 2020. A six months supply indicates a market balanced equally between buyers and sellers. In July 2021, of the 53 metro areas surveyed, zero metro areas reported a months supply at or over six, which is typically considered a buyer's market. The markets with the lowest Months Supply of Inventory were Albuquerque, NM at 0.5, Raleigh-Durham at 0.6, followed by a three-way tie between Indianapolis, INCharlotte, NC, and Seattle, WA at 0.7.

Months Supply of Inventory:

5 Markets with the Biggest YoY Decrease

Market

July 2021

Months
Supply of
Inventory

July 2020

Months
Supply of
Inventory

Year-over-
Year %
Change

Indianapolis, IN

0.7

5.0

-86.6%

Albuquerque, NM

0.5

1.7

-70.6%

Hartford, CT

0.8

2.5

-68.0%

Providence, RI

1.1

2.9

-62.1%

Raleigh-Durham, NC

0.6

1.5

-60.0%

RE/MAX National Housing Report June 2021

by Elite Asset Management Team

Record Home Sales, Record Prices, Growing Inventory

 

 

DENVERJuly 19, 2021 /PRNewswire/ -- June created the perfect trifecta for a hot housing market: June home sales and prices both set report records, while inventory grew for the first time in 15 months.

The month of June, typically the biggest month of the year for home sales, saw sales soar 14.2% over a strong May and top all other months in the 13-year history of the report, which spans 53 metro markets. The Median Sales Price of $336,000 was also a report record, eclipsing the previous record of $320,000 – set in April and tied in May – by 4.9%.

The number of homes for sale, meanwhile, grew 1.9% over May – the first increase since March 2020. Inventory, however, still remained 37.5% below June 2020 levels.

"June saw a unique case of supply and demand rising in unison, thanks to an uptick in sellers listing their homes for sale – a very welcome sign for frustrated buyers," said Nick Bailey, President, RE/MAX, LLC. "People are relocating as companies and individuals make long-term decisions about remote work and getting back to the office. Also, sellers appear to be more confident about finding another home after they sell their current one. If these trends continue, inventory levels should keep growing."

With year-over-year comparisons skewed by the pandemic, May-to-June averages for 2015-2019 are helpful in illustrating what's typical at this time of year. June has been the top month for home sales in four of the past six years:

  • June 2021 home sales increased 14.2% month over month, more than doubling the 6.4% average gain from May to June in 2015-2019. Year over year, sales were up 26.4%.
  • June's Median Sales Price of $336,000 was 4.9% over May's, very similar to the typical May-to-June increase of 4.6%. Year over year, June's price is 21.9% higher than June 2020's $275,000.
  • The 1.9% increase in inventory from May to June was far greater than the typical gain of 0.6%. Still, inventory was down 37.5% year over year.

With the pandemic-related exception of 2020, June has been a leading month for home sales over the past six years:

Top Months for Home Sales*

2020**:

July, Aug., Oct., Sept.

2019:

May, July, June, Aug.

2018:

June, May, Aug., July

2017:

June, May, Aug., July

2016:

June, Aug., May, July

2015:

June, July, Aug., May

* The four months for each year are listed in order of most sales
**Stay-at-home orders were in place in many states in the spring and summer

June's average Days on Market of 24 was four days less than May's and represented a faster sale by 21 days compared to June 2020. June's 1.1 Months Supply of Inventory compares to 1.2 in May and 2.2 year over year.

Highlights and the local markets leading various metrics for June include:

Closed Transactions 
Of the 53 metro areas surveyed in June 2021, the overall average number of home sales is up 14.2% compared to May 2021, and up 26.4% compared to June 2020.  Leading the year-over-year sales percentage increases were Honolulu, HI at +92.3%, New York, NY at +80.6%, and Miami, FL at +78.4%.

Closed Transactions:

5 Markets with the Biggest YoY Increase

 

Market

June 2021
Transactions

June 2020
Transactions

Year-over-
Year %
Change

Honolulu, HI

1,198

623

+92.3%

New York, NY

3,365

1,863

+80.6%

Miami, FL

5,793

3,248

+78.4%

Philadelphia, PA

8,334

5,066

+64.5%

Pittsburgh, PA

3,003

1,897

+58.3%

Median Sales Price – Median of 53 metro median prices
In June 2021, the median of all 53 metro Median Sales Prices was $336,000, up 4.9% compared to May 2021, and up 21.9% from June 2020. Fifty-one metro areas increased year-over-year by double-digit percentages, led by Boise, ID at +38.0%, Augusta, ME at +34.7%, and Phoenix, AZ at +30.1%. No metro areas saw a year-over-year decrease in Median Sales Price.

Median Sales Price:

5 Markets with the Biggest YoY Increase

 

Market

June 2021
Median Sales
Price

June 2020
Median Sales
Price

Year-over-
Year %
Change

Boise, ID

$467,812

$339,018

+38.0%

Augusta, ME

$256,000

$190,000

+34.7%

Phoenix, AZ

$400,000

$307,500

+30.1%

Los Angeles, CA

$670,000

$525,000

+27.6%

Salt Lake City, UT

$470,000

$373,100

+26.0%

Days on Market – Average of 53 metro areas
The average Days on Market for homes sold in June 2021 was 24, down four days from the average in May 2021, and down 21 days from the average in June 2020. The metro areas with the lowest Days on Market were Cincinnati, OH at 9 and Nashville, TN at 11 followed by a four-way tie at 12 among Boise, IDSeattle, WADenver, CO, and Omaha, NE. The highest Days on Market averages were in Miami, FL at 80, Des Moines, IA at 73, and New York, NY at 67. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Days on Market:

5 Markets with the Biggest YoY Decrease

 

Market

June 2021
Days on
Market

June 2020
Days on 
Market 

Year-over-
Year %
Change

Charlotte, NC

14

39

-64.1%

Boise, ID

12

33

-63.6%

Tampa, FL

22

57

-61.4%

Baltimore, MD

17

44

-61.4%

Raleigh-Durham, NC

19

47

-59.6%

Months Supply of Inventory – Average of 53 metro areas
The number of homes for sale in June 2021 was up 1.9% from May 2021 and down 37.5% from June 2020. Based on the rate of home sales in June 2021, the Months Supply of Inventory decreased to 1.1 compared to 1.2 in May 2021, and decreased compared to 2.2 in June 2020. A six months supply indicates a market balanced equally between buyers and sellers. In June 2021, of the 53 metro areas surveyed, zero metro areas reported a months supply at or over six. The lowest Months Supply of Inventory was a five-way tie among Albuquerque, NMRaleigh-Durham, NCManchester, NHDenver, CO; and Seattle, WA at 0.5.

Months Supply of Inventory:

5 Markets with the Biggest YoY Increase

 

Market

June 2021
Months
Supply of
Inventory

June 2020
Months
Supply of
Inventory

Year-over-
Year %
Change

Boise, ID

0.8

0.9

-11.1%

Des Moines, IA

2.6

3.3

-21.2%

Philadelphia, PA

1.2

1.6

-25.0%

Wichita, KS

0.8

1.1

-27.3%

Washington, DC

0.8

1.2

-33.3%

Feel free to contact me and I can help break down exactly what these numbers mean for our local market and for your neighborhood. And lastly, If you or anyone you know is thinking of buying or selling a home - please call or email me. I'm here to help!

Peter Veres

Associate Broker,CRS,ABR,CLHMS,SRES

Elite Asset Management Team - RE/MAX Elite

www.PeteVeres.com

Cell: 505-362-2005

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Elite Asset Management
RE/MAX SELECT
8300 Carmel Ave. NE Ste. 203
Albuquerque NM 87122
(505)362-2005

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