The September 2018 RE/MAX National Housing Report shows home sales took a 12% tumble while prices remain at record levels.
“The big drop in September closings catches your attention. The market is clearly re-balancing as buyers and sellers continue to process the increasing interest rate environment and what that means to them,” said RE/MAX CEO Adam Contos. “The slower drop in inventory – a visible trend for nearly half a year – further illustrates the ongoing shift toward market equilibrium, and that’s healthy in the long-term.”
September 2018 RE/MAX National Housing Report
Home Sales
The report showed trends of fewer closings and stabilizing inventory that continued through September, punctuated by a surprisingly big 11.6% year-over-year reduction in home sales.
Record Prices
September 2018 posted a Median Sales Price of $241,000 that marked the 30th consecutive month of year-over-year price increases – the price is also the highest September price in the 10-year history of the report. Home prices rose by 5.6% over September 2017, in excess of twice the year-over-year price increase of 2.3% from September 2016 to September 2017. That reversed a trend witnessed in the previous 3 months, when year-over-year price increases trailed 2017’s rate of growth.
Low Inventory
The volume of homes for sale in September 2018 was down 1.0% from August 2018 and down 4.7% from September 2017. In accordance with the rate of home sales in September, the Months Supply of Inventory increased to 3.7 from 3.0 in August 2018, and increased in comparison with the September 2017 at 3.6.
“It’s a little surprising to see prices staying so strong, but it’s hardly shocking in such a tight market,” added Contos. “The headwinds of rising prices and interest rates amid already tight inventory levels have been crimping affordability and slowing sales for most of the year, but it varies by geography. In circumstances like these, where the market is tricky to navigate, both buyers and sellers can benefit by aligning themselves with a professional agent – a local expert who can cut through the noise and advocate on their behalf.”
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