September Home Sales Slow Amid Strong Prices, Low Inventory

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

Denver, CO – Oct. 16, 2017 (PRNewswire) September became the fifth month this year to post a decline in home sales compared to a record-setting 2016, while marking the 71st consecutive month of rising sale prices year-over-year, according to the October RE/MAX National Housing Report.

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Joining August, July, April and February, September home sales dropped 4.2% year-over-year in the report’s monthly analysis of housing data in 54 metro areas. Going in the opposite direction, the Median Sales Price increased to $225,000. Though the lowest price since March, it was 2.3% higher than September 2016. The last month when home prices did not increase year-over-year was October 2011.

Three-quarters of the way through 2017, other notable numbers from the RE/MAX National Housing Report include:

  • In the wake of Hurricane Irma in early September, Miami saw home sales drop 35.2% year-over-year. Houston, meanwhile, posted a 3.2% gain despite the impact of Hurricane Harvey in late August.
  • Days on Market declined by one week, from 56 in September 2016 to 49.
  • At 3.6, the Months Supply of Inventory was the lowest of any September in the report’s 9-year history. Twenty-three markets are at 3 months or less.
  • Mirroring this, inventory dropped 14.1% year-over-year, with 46 metro areas seeing fewer homes for sale. Year-over-year, inventory has declined every month since November 2008.

“We’re not seeing any relief from the nationwide housing shortage as we enter the typically slower fall and winter selling seasons,” said Adam Contos, RE/MAX Co-CEO. “Plain and simple, we need more homes, particularly at the entry-level price point. Until then, it will most likely continue to be a seller’s market with homes going from listed to sold quickly.”

Real Estate Infographic

Closed Transactions
Of the 54 metro areas surveyed in September 2017, the overall average number of home sales decreased 14.9% compared to August 2017 and decreased 4.2% compared to September 2016. Sixteen of the 54 metro areas experienced an increase in sales year-over-year including, Billings, MT,+18.4%, Burlington, VT, +7.6%, Chicago, IL, 7.4%, Honolulu, HI, +4.6% and Las Vegas, NV +3.8%.

Median Sales Price – Median of 54 metro median prices
In September 2017, the median of all 54 metro Median Sales Prices was $225,000, down 5% from August 2017 but up 2.3% from September 2016. Only five metro areas saw a year-over-year decrease in Median Sales Price or remained unchanged (Trenton, NJ, -8.5%, Hartford, CT, -5.3%, Billings, MT, -2.2%, and Augusta, ME and Baltimore, MD at 0.0%). Eight metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Seattle, WA, +13.7%, San Francisco, CA, +13.2%, Providence, RI, +13%, Las Vegas, NV, +12.2% and Tampa, FL, +11.4%.

Days on Market – Average of 54 metro areas
The average Days on Market for homes sold in September 2017 was 49, up two days from the average in August 2017, and down seven days from the September 2016 average. The four metro areas with the lowest Days on Market were Omaha, NE, at 23, Seattle, WA, at 25, and San Francisco, CA, at 26. The highest Days on Market averages were in Augusta, ME, at 105 and Burlington, VT, at 94. 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 September 2017 was down 3.6% from August 2017, and down 14.1% from September 2016. Based on the rate of home sales in September, the Months Supply of Inventory increased to 3.6 from August 2017 at 3.1, compared to September 2016 at 3.9. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In September 2017, 51 of the 54 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. The metro areas that saw a months supply above 6.0, which is typically considered a buyer’s market, were Miami, FL, at 11.8, Augusta, ME, at 6.4, and Birmingham, AL, at 6.3. The markets with the lowest Months Supply of Inventory continued to be in the west with San Francisco, CA, at 1.2, Seattle, WA, at 1.5, Denver, CO, at 1.6 and San Diego, CA, at 1.8.

Contact
For specific data in this report or to request an interview, please contact newsroom@remax.com.

About the RE/MAX Network:
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Over 115,000 agents provide RE/MAX a global reach of more than 100 countries and territories. Nobody sells more real estate than RE/MAX, when measured by residential transaction sides. RE/MAX, LLC, one of the world’s leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE: RMAX). With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $157 million for Children’s Miracle Network Hospitals® and other charities. For more information 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.

First Half of 2017 Ends with Record Sales, Prices

July RE/MAX National Housing Report on MLS Data from 53 Metro Areas

DENVER, July 14, 2017 (PRNewswire) Halfway through 2017, the U.S. housing market is on pace for another record year as four of the last six months have topped same month sales from 2016, according to the July 2017 RE/MAX National Housing Report. June home sales were 1.4% higher than June 2016, which was previously the month with the most home sales in the nine-year history of the report. To access the housing report infographic, visit rem.ax/2cYFT50.

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The combination of increased sales and a record low inventory that slipped further to 2.8 months resulted in higher sales prices. June’s median sales price of $245,000, up 7.5% over last June, also set a RE/MAX National Housing report record. In fact, prices increased in 50 of the report’s 53 markets.

The average number of Days on Market dropped to a report-record low of 47, while inventory dropped year-over-year in 87% of the markets.

Other notable numbers:

  • Thirty of the 53 metro areas experienced an increase in transactions.
  • The June 2017 Median Sales Price of $245,000 was the highest in the history of the report.
  • Decreasing 15.2% from June 2016, inventory continued to decline year-over-year. This is the 104th consecutive month of year-over-year declines dating back to October 2008.
  • The June 2017 average Days on Market was 47, the lowest Days on Market in the history of the report.

“Sellers continue to benefit from limited inventory, getting top-dollar for their homes, and as a result, overall sales are at a record high,” said Adam Contos, RE/MAX Co-CEO. “But buyers shouldn’t be discouraged. Mortgage rates are still relatively low and the market may be taking a positive turn, albeit subtle, as recent Labor Department data showed a decline in open construction jobs which could mean more workers focused on new home builds.”

Closed Transactions
Of the 53 metro areas surveyed in June 2017, the overall average number of home sales increased 7.5% compared to May 2017 and 1.4% compared to June 2016. Thirty of the 53 metro areas experienced an increase in sales year-over-year including, Trenton, NJ +14.9%, Fargo, ND +14.6%, Wilmington/Dover, DE +12.9%, Albuquerque, NM +10.4% and Billings, MT +10.4%.

Median Sales Price – Median of 53 metro median prices
In June 2017, the median of all 53 metro Median Sales Prices was $245,000, up 5.6% from May 2017 and up 7.5% from June 2016. Only three metro areas saw a decrease in Median Sales Price (Trenton, NJ, -12.1%, Anchorage, AK, -2.5%, and Wilmington/Dover, DE, -1.3%). Ten metro areas increased by double-digit percentages, with the largest increases seen in Las Vegas, NV +13.7%, Nashville, TN +13.7%, Seattle, WA 12.3%, Manchester, NH +12.2%, and San Diego, CA +11.6%.

Days on Market – Average of 53 metro areas
The average Days on Market for homes sold in June 2017 was 47, down four days from the average in May 2017, and down seven days from the June 2016 average. The four metro areas with the lowest Days on Market were Omaha, NE at 20, Seattle, WA at 20, Denver, CO at 21 and San Francisco, CA at 22. The highest Days on Market averages were in Augusta, ME at 119 and Miami, FL at 85. 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 53 metro areas
The number of homes for sale in June 2017 was up 1.2% from May 2017, and down 15.2% from June 2016. Based on the rate of home sales in June, the Months Supply of Inventory was 2.8, compared to May 2017 at 2.6 and June 2016 at 3.2. This is the fourth consecutive month that months supply has been below 3.0. A 6.0-months supply indicates a market balanced equally between buyers and sellers. In June 2017, 52 of the 53 metro areas surveyed reported a months supply of less than 6.0, which is typically considered a seller’s market. At 6.4, Miami, FL continued to be the only metro area that saw a months supply above 6.0, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory continued to be in the west, with San Francisco, CA at 1.0, Seattle, WA at 1.1, and Denver, CO at 1.2.

Contact
For specific data in this report or to request an interview, please contact newsroom@remax.com.

About the RE/MAX Network:
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Over 110,000 agents provide RE/MAX a global reach of more than 100 countries and territories. Nobody sells more real estate than RE/MAX, when measured by residential transaction sides. RE/MAX, LLC, one of the world’s leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE: RMAX). With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $157 million for Children’s Miracle Network Hospitals® and other charities. For more information 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 53 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.

RE/MAX Notes Five Key Questions Sellers Often Forget to Ask When Choosing a Broker to Sell Their Home

Chicago, IL – May 4, 2017 (PRNewswire) When it’s time to sell their home, most Americans have their eye on the bottom line. RE/MAX brokers say sellers want to know, first and foremost, what their home is worth, what commission the broker will charge and how much they might have to spend to get the home ready to sell.

“Those are vital questions, but they aren’t the only ones,” said Jack Kreider, executive vice president and regional director of RE/MAX Northern Illinois.

REMAX Northern Illinois

Choosing a broker can be confusing because most of us sell a home only every 10 to 15 years, and the real estate business has seen dramatic changes over the last decade thanks to the internet.

According to Kreider, the secret to success lies in choosing a broker whose approach to selling homes meshes with a seller’s goals and preferences. To make that happen, sellers must ask the right questions.

Based on interviews with RE/MAX brokers, here are five questions sellers should ask when selecting a broker.

1. What is an appropriate listing price?

Whatever the ultimate sales price, the listing price is a vital starting point, noted Mary Reuter Kenney of RE/MAX Excels in Geneva, Ill.

“Some sellers and brokers may want to start with an elevated list price hoping for an eager buyer, but if the price is too high, it can keep buyers away. The longer a home sits on the market, the lower its eventual selling price is likely to be, so a realistic list price is essential. Sellers should ask a broker to present a list price recommendation based on the recent sales prices of comparable homes in the area, while also keeping the impact of current competition in mind.”

2. What are the expenses, besides commission, that sellers will face?

“Many sellers aren’t aware there are selling expenses beyond the broker’s commission,” said Kyra Pych of RE/MAX in the Village, Realtors, Oak Park, Ill.

“Those fees vary depending on local custom, so I go through all that with them: costs for title search and lot survey, for attorney fees, transfer taxes and other things. Sometimes, those fees determine whether a seller must bring money to the closing table, so they need the full picture,” she said.

3. How will you market my home, especially online?

Because more than 90 percent of buyers use the internet as part of their home search, effective online marketing is vital these days.

“Sellers must understand how a broker approaches internet marketing,” said Karen Danenberg of RE/MAX Suburban in Buffalo Grove, Ill. “If done right, it lets buyers get to know a house before they walk in, but to do that you need good pictures and good verbiage. If I were a seller, I’d ask to see how a broker had marketed comparable properties, and not just the photos and text on the MLS, but also what they did on social media, which is becoming a huge factor.”

4. How will the seller and broker work together?

It’s a key issue and one with many dimensions, noted Damian Ciszek of RE/MAX 10, Chicago, and there can be marked differences among brokers.

“I work on my own,” Ciszek explained, “so I handle everything, but other brokers may be part of team of brokers or may have unlicensed assistants who deal with portions of the process. Sellers should understand what information they will be getting and how frequently and just what is expected of them.”

5. What is the broker’s approach to preparing a home for sale?

Some brokers focus on maximizing value. That can mean a fair amount of pre-listing preparation for the seller but also a higher sales price. Other brokers are more willing to price a home to reflect its current condition if the buyer lacks the time or resources to make cosmetic improvements.

Jennie McLaughlin of RE/MAX Hub City in Rochelle, Ill., is among those who emphasize making homes she lists more salable, both in terms of exterior curb appeal and interior appearance.

“Curb appeal is extremely important. It defines the first impression buyers have of the property. Inside the home, it isn’t always necessary to invest a lot of money, but getting the home clean and decluttered pays huge dividends, not only in a better sales price but also a faster sale,” she said.

The RE/MAX Northern Illinois network, with headquarters in Elgin, Ill., consists of more than 2,250 sales associates and 103 independently owned and operated RE/MAX offices that provide a full range of residential and commercial brokerage services. The northern Illinois network is part of RE/MAX, a global real estate organization with 110,000+ sales associates in 100+ nations.

Contact:

Chris Calomino
RE/MAX Northern Illinois
(847) 428-4200