RE/MAX: August Sales, Prices Up Steadily

Sorohan, Mike msorohan@mba.org

September 20, 2016

RE/MAX, Denver, said its survey of 53 markets showed home sales increased in August by nearly 6 percent from a year ago, reversing a July decline.

The company's National Housing Report also said the median home price rose by 5.1 percent to $225,900 from $215,000 in August as steady monthly increases continued. From January through August, the average year-over-year Median Sales Price increase was 3.9%.

August sales rose year-over-year in 41 of the 53 U.S. metro areas analyzed. Twelve metro areas posted double-digit increases, including major markets along the east coast; so far in 2016, seven of the eight months have seen year-over-year sales increases nationally. Three Florida metro areas were among the seven posting double-digit increases. Only four markets, including two in the Northeast, saw price declines.

The report said inventory remained tight in August, averaging a 3.4 months' supply. While six months is considered a balanced market, 23 of the 53 markets surveyed by RE/MAX reported less than half of that, with seven cities reporting less than two months of inventory, including four on the West Coast.

"August's nearly 6% sales increase over last year is providing a strong finish for the summer home selling and buying season," said Dave Liniger, RE/MAX CEO, chairman and co-founder. "While July saw a decline, August built upon the trends in the spring and early summer. Coupled with moderating price increases, the sales growth we're seeing represents a market that's very sustainable."

Average Days on Market for homes sold in August was 54, up one day from the average in July 2016, and down five days from August 2015. August marked the 41st consecutive month with a Days on Market average of 80 or less. Markets with the lowest Days on Market were Denver and Omaha at 24. Highest Days on Market averages were Augusta, Maine, at 135, and Des Moines, Iowa at 93.

RE/MAX reported the number of homes for sale in August was down 4.2 percent from July and down 16.6 percent from a year ago. Twenty-three of the 53 metro areas had less than half of what is considered a balanced inventory supply. The markets with the lowest Months' Supply of Inventory are Denver (1.4), San Francisco (1.4), Seattle (1.5) and Boston (1.6).

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