Daily Archives: July 23, 2018

Median Sales Price Reaches Nine-Year High, While Sales Decline

Posted on by
Reply

June 2018 RE/MAX National Housing Report on MLS Data from 54 Metro Areas

Denver, CO – July 19, 2018 (PRNewswire) Halfway through 2018, prices are at record highs, inventory is at record lows and home sales are trailing 2017’s pace, according to the RE/MAX National Housing Report. To access the housing report infographic, visit: https://rem.ax/2phKHWT.

Remax Logo

June sales were 5.5% lower than June 2017 in the 54 metro areas surveyed, marking the seventh consecutive month of year-over-year declines.

Headed in the opposite direction, the June Median Sales Price of $258,500 was an all-time high in the nine-year history of the report. It was 5.1% higher than the $245,000 recorded last June, bringing the consecutive months of year-over-year price increases to 27. In each of the previous five years – going back to June 2013’s $193,750 – June has posted the highest Median Sales Price of the year.

“Year-over-year prices have been climbing for more than two years now, which is great news for homeowners and sellers,” said RE/MAX CEO Adam Contos. “In the hottest markets, demand is especially high because there simply aren’t that many homes for sale. The slower sales figures we’re seeing are tied to inventory more than anything else.”

Forty-two of the 54 metro areas reported a year-over-year drop in inventory. That years-long trend is reflected in Months Supply of Inventory dropping to 2.7 – down 8.8% year-over-year and the smallest figure ever recorded for June. Fewer houses for sale generally results in a faster process: Homes sold in June averaged just 42 Days on Market – five days less than June 2017 and three days under the previous nine-year low of 45 days (July 2017).

“Lack of inventory has become a theme for the year,” Contos said. “Having fewer homes to choose from poses a challenge for buyers, who need to be ready to act decisively and quickly. Working with a full-time, professional RE/MAX agent can prepare them for that.”

Closed Transactions

Of the 54 metro areas surveyed in June 2018, the overall average number of home sales increased 5.4% compared to May 2018 and decreased 5.5% compared to June 2017. Seven of the 54 metro areas experienced an increase in sales year-over-year including, Omaha, NE, +6.6%, Burlington, VT, +4.9%, Pittsburgh, PA, +2.5% and Augusta, ME, at +1.5%.

Median Sales Price – Median of 54 metro median prices

In June 2018, the median of all 54 metro Median Sales Prices was $258,500, up 2.8% from May 2018 and up 5.1% from June 2017. Only two metro areas saw a year-over-year decrease in Median Sales Price including Billings, MT, -0.6% and Anchorage, AK at -0.4%. Five metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Boise, ID, +17.3%, San Francisco, CA, +15.7%, Las Vegas, NV, +13%, and Trenton, NJ at +12.7%.

Days on Market – Average of 54 metro areas

The average Days on Market for homes sold in June 2018 was 42, down four days from the average in May 2018, and down 5 days from the June 2017 average. The metro areas with the lowest Days on Market were Seattle, WA at 17, San Francisco, CA at 20, Denver, CO, at 21 and Omaha, NE at 22. The highest Days on Market averages were in Augusta, ME, at 97, Miami, FL, at 76, Hartford, CT at 73 and New York, NY, at 72. 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 54 metro areas

The number of homes for sale in June 2018 was up 2.5% from May 2018, and down 8.8% from June 2017. Based on the rate of home sales in June, the Months Supply of Inventory increased to 2.7 from 2.5 in May 2018, and decreased compared to June 2017 at 2.8. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In June 2018, all but one of 54 metro areas surveyed reported a months supply at or less than 6.0, which is typically considered a seller’s market. The markets with the lowest Months Supply of Inventory are in the west with San Francisco, CA, at 1.2, Salt Lake City, UT, 1.3, and Boise, ID and Denver, CO, both tied with 1.4.

For specific data in this report or to request an interview, please contact newsroom@remax.com. Please note that the June 2018 report has added in Salt Lake City, UT and deleted Fargo, ND.

About the RE/MAX Network

As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with over 120,000 agents in more than 100 countries and territories. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. Dedicated to innovation and change in the real estate industry, RE/MAX launched Motto Mortgage, a ground-breaking mortgage franchisor, in 2016 and acquired booj, a real estate technology company, in 2018. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit www.remax.com/newsroom.

Description

The RE/MAX National Housing Report is distributed each month on or about the 15th. The first Report was distributed in August 2008. The Report is based on MLS data in approximately 54 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state. Metro area definitions include the specific counties established by the U.S. Government’s Office of Management and Budget, with some exceptions.

Definitions

Transactions are the total number of closed residential transactions during the given month. Months Supply of Inventory is the total number of residential properties listed for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pended) during the month. Where “pended” data is unavailable, this calculation is made using closed transactions. Days on Market is the number of days that pass from the time a property is listed until the property goes under contract for all residential properties sold during the month. Median Sales Price is the median of the median sales prices in each of the metro areas included in the survey.

MLS data is provided by contracted data aggregators, RE/MAX brokerages and regional offices. While MLS data is believed to be accurate, it cannot be guaranteed. MLS data is constantly being updated, making any analysis a snapshot at a particular time. Every month the RE/MAX National Housing Report re-calculates the previous period’s data to ensure accuracy over time. All raw data remains the intellectual property of each local MLS organization.

Realogy To Release Second Quarter 2018 Financial Results And Host Webcast On August 3, 2018

Posted on by
Reply

Madison , NJ – July 19, 2018 (PRNewswire) Realogy Holdings Corp. (NYSE: RLGY), the largest full-service residential real estate services company in the United States, will release its financial results for the quarter ended June 30, 2018, on Friday, August 3, prior to the company’s webcast scheduled for 8:30 a.m. (EDT) on the same day. During this call the company will report its second quarter financial results and provide an update on its business and outlook.

realogy_logo

The webcast will be hosted by Ryan Schneider, chief executive officer and president, and Anthony E. Hull, executive vice president, chief financial officer and treasurer.

Investors may access the conference call live via webcast at www.realogy.com under “Investors” or by dialing 888-895-3527 (toll free); international participants should dial 706-679-2250. Please dial in at least 5 to 10 minutes prior to start time. A webcast replay will also be available on the company’s website.

About Realogy Holdings Corp.

Realogy Holdings Corp. (NYSE: RLGY) is the leading and most integrated provider of residential real estate services in the U.S. that is focused on empowering independent sales agents to best serve today’s consumers. Realogy delivers its services through its well-known industry brands including Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, Corcoran Group®, ERA®, Sotheby’s International Realty® as well as NRT, Cartus, Title Resource Group and ZapLabs, an in-house innovation and technology development lab. Realogy’s fully integrated business model includes brokerage, franchising, relocation, mortgage, and title and settlement services. Realogy provides independent sales agents access to leading technology, best-in-class marketing and learning programs, and support services to help them become more productive and build stronger businesses. Realogy’s affiliated brokerages operate around the world with approximately 190,800 independent sales agents in the United States and approximately 98,200 independent sales agents in approximately 115 other countries and territories. Realogy is headquartered in Madison, New Jersey.

Investor Contacts:

Alicia Swift
(973) 407-4669
alicia.swift@realogy.com

Media Contact:

Nick Renda
(973) 407-7470
nick.renda@realogy.com

Realtors® Survey Shows Rising Membership, Younger Agents Joining Industry

Posted on by
Reply

Washington, D.C. – July 19, 2018 (nar.realtor) The income and sales volume of National Association of Realtors® members dropped slightly over the last year, but membership increased as younger members continue to enter the industry, according to the 2018 National Association of Realtors® Member Profile.

NAR Logo

This past year, there was a rise in new members from 1.22 million in March 2017 to 1.30 million in April 2018. The profile found that 29 percent of members have less than two years of experience, an increase from 28 percent.

“While inventory shortages continue and home prices remain high, NAR has seen a whopping 6 percent increase in membership over the last year. Younger Americans are seeking business opportunities that working in real estate provides, but the overall trend is a slightly older age profile,” Lawrence Yun, NAR chief economist stated.

The survey’s results are representative of the nation’s 1.3 million Realtors®; members of NAR account for about half of all active real estate licensees in the U.S. Realtors® go beyond state licensing requirements by subscribing to NAR’s Code of Ethics and standards of practice and committing to continuing education.

Demographic Characteristics of Realtors®

Realtors®’ median age was 54 this year, slightly up from the last two years, at 53. Sixty-three percent of Realtors® are female, and the typical Realtor® is a 54-year-old white female who attended college and is a homeowner. The most common first careers reported are in management, business or finance, or in sales and retail, both at 16 percent. Only five percent of Realtors® reported real estate was their first career; 72 percent said that real estate was their only occupation, and that number jumps to 82 percent among members with 16 or more years of experience.

Sixty-five percent of Realtors® are licensed sales agents (same as last year), 21 percent hold broker licenses (down from 22 percent), and 15 percent hold broker associate licenses (same as last year). New members tended to be more diverse than more experienced members; 25 percent of members with two years of experience or less were minorities, up from 22 percent last year.

Business Activity of Realtors®

According to the survey, the main factors that limit potential clients in completing transactions are difficulty finding the right property (35 percent), housing affordability (17 percent), and difficulty in obtaining mortgage financing (12 percent).

Impacted by low inventory, the typical number of transactions decreased slightly from 12 transactions in 2016 to 11 transactions in 2017. Despite rising home prices again in 2017, the median brokerage sales volume decreased to $1.8 million in 2017 from $1.9 million in 2016.

“A familiar story lingers from last year, as limited inventory continues to plague many housing markets across the country. For the fifth year in a row, the difficulty finding the right property has surpassed the difficulty in obtaining a mortgage as the most cited reason limiting potential homebuyers,” said Yun.

The typical Realtor® earned 12 percent of their business from repeat clients and customers (compared to 13 percent in 2017) and 17 percent through referral from past clients and customers (compared to 18 percent in 2017).

Realtors®’ web presence and use of social media has increased in recent years as a valuable marketing tool to reach clients and build online communities. Sixty-eight percent of members reported having their own website, the same number as last year. Members continue to be more comfortable with using the latest technology on a daily basis as 71 percent of members were on Facebook for professional use and 59 percent were on LinkedIn (same as last year).

Finally, 80 percent reported that they are certain they would remain in the real estate business, while those who were newest to the profession were least certain they would remain; 5 percent of all members were uncertain whether they would remain in the business.

Office and Firm Affiliation of Realtors®

The survey looked at office and firm affiliation for members and found that over half of Realtors® continue to report that they work for an independent company. Fifty-eight percent of those are licensed as brokers and broker associates (up from 56 percent in 2017), and 49 percent are licensed as sales agents, an increase of one percent since 2017. Nearly nine in 10 members are independent contractors at their firms, the same as last year.

Forty-four percent of members worked at one office firm while a quarter of members worked at a firm with two to four offices. The typical member had been with their current firm for four years.

The 2018 National Association of Realtors® Member Profile is based on a survey of 200,964 members, which generated 12,495 usable responses, representing an adjusted response rate of 6.2 percent. Information about compensation, earnings, sales volume and number of transactions is characteristics of calendar year 2017, while all other data are representative of member characteristics in early 2017.

The National Association of Realtors® is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Media Contact:

Cole Henry
(202) 383-1290
Email