Housing report

October 2021 RE/MAX National Housing Report

DENVER, November 18, 2021 /PRNewswire/ — Stuck between a high median sale price of $336,000 and record inventories, October home sales fell 6.4% from September, nearly double the typical seasonal decline. September saw near-record sales, which also contributed to the sharp drop in month-on-month sales.

October inventory fell 12.7% from September to the fifth-lowest level in the report’s 14-year history, and October’s 1.3-month inventory supply is tied for the second-lowest in the report’s history, alongside July and August this year.

“We are seeing the effects of a long and sustained month-over-month rise in house prices and sales and the market could move past the days of immediate sales, multiple offers and bidding wars on virtually all properties,” said Nick Bailey, President, RE/MAX, LLC. “It’s OK. The drop in October sales, especially after such a busy September, is a step towards a more balanced market and was somewhat overdue.

“Homebuyers may see some relief in price appreciation over the next few months, although selling levels remain elevated. Sellers remain in a very strong position, but with prices stabilizing and holding competitive interest rates, buyers may find the coming months more advantageous than at any time earlier this year.”

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

Additionally, reflecting both the number of homes on the market and the speed of sales, the 12.7% month-over-month drop in active inventory was more than double the average drop in 5.3% from September to October 2015-2019. Inventories are down 28% year over year and down month over month except for June and July this year.

One exception is the median sale price, which rose 0.8% from September, in contrast to the September-October average decline of 1.3% in 2015-2019. The median sale price is up 11.8% compared to October 2020. October median selling price of $336,000 tied the record set in June 2021. Home prices have now risen year over year for 34 straight months.

Highlights and local markets leading various metrics for October include:

Closed deals
Of the 51 metropolitan areas studied in October 2021, the overall average number of home sales is down 6.4% from September 2021, and down 10.2% compared to October 2020. The markets with the largest year-over-year sales percentage decline were Birmingham, AL at -32.1%, Billing, MT at -30.0%, and Providence, RI at -21.5%. Leading the year-over-year sales percentage increase are Honolulu, Hawaii at +16.7% and Wilmington/Dover, DE at +1.4.

Closed trades:
5 markets with the largest year-over-year decline

Marlet

October 2021
Transactions

October 2020
Transactions

Year after year-
Year %
Change

Birmingham, AL

1,431

2,108

-32.1%

Billing, 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 sale price – Median of the median prices of 51 metros
In October 2021, the median of the median selling prices of the 51 metros was $336,000, up 0.8% from September 2021, and up 11.8% compared to October 2020. No metro area saw a year-over-year decline in median selling price. Thirty metropolitan areas grew year-over-year by double-digit percentages, led by Boise, I.D. at +29.6%, Phoenix, Arizona at +25.4%, and Salt Lake City, UT at +23.4.

Median Selling Price:
5 markets with the highest year-over-year increase

Marlet

October 2021
Median sales
Price

October 2020
Median sales
Price

Year after year-
Year %
Change

Boise, I.D.

$479,900

$370,423

+29.6%

Phoenix, Arizona

$420,000

$335,000

+25.4%

Salt Lake City, UT

$475,000

$385,000

+23.4%

Raleigh-Durham, North Carolina

$381,250

$310,000

+23.0%

Tampa, Florida

$317,048

$260,000

+21.9%

Days on Market – Average of 51 metropolitan areas
The average number of days on the market for homes sold in October 2021 was 27, one day older than the average in September 2021, and down 11 days from the average in October 2020. Metropolitan areas with the lowest market days were Nashville, TN At 11 o’clock, Omaha, NE at age 13, and Cincinnati, Ohio to 14. The highest Days on Market averages were Des Moines, Iowa at 84, Miami, Florida at age 75, and New York, NY to 63. Days on Market is the number of days between when a home is first listed in an MLS and when a sales contract is signed.

Days on the market:
5 markets with the largest year-over-year decline

Marlet

October 2021
days on
Marlet

October 2020
days on
Marlet

Year after year-
Year %
Change

Raleigh-Durham, North Carolina

17

36

-52.8%

Nashville, TN

11

21

-46.4%

Birmingham, AL

17

32

-46.3%

Orlando, Florida

27

50

-46.0%

Tampa, Florida

23

42

-45.2%

Months of inventory supply – Average of 51 metropolitan areas
The number of houses for sale in October 2021 was down 12.7% from September 2021 and down 28.0% compared to October 2020. Based on home sales rate in October 2021, months of inventory supply fell to 1.3 from 1.5 in September 2021, and decreased from 1.9 in October 2020. A six-month supply indicates a balanced market between buyers and sellers. In October 2021, of the 51 metro areas surveyed, no metro area reported a monthly supply of six months or more, which is generally considered a buyer’s market. Markets with the lowest months of inventory supply were tied at three between Albuquerque, New Mexico, Raleigh-Durham, North Carolina, and Seattle, WA at 0.6.

Inventory Supply Months:
5 markets with the largest year-over-year decline

Marlet

October 2021
Month
Supply
Inventory

October 2020
Month
Supply
Inventory

Year after year-
Year %
Change

Albuquerque, New Mexico

0.6

1.9

-68.4%

Hartford, Connecticut

0.8

2.5

-68.0%

Miami, Florida

2.0

6.1

-67.2%

Providence, RI

1.1

2.8

-60.7%

Orlando, Florida

0.9

2.1

-57.1%

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About the RE/MAX network
As one of the world’s leading real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in more than 8,600 offices in more than 110 countries and territories. No one in the world sells more real estate than RE/MAX, as measured by residential transactions. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative entrepreneurial culture offering its agents and franchisees the flexibility to operate their business independently. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars each year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search real estate listings or find an agent in your community, please visit www.remax.com. For the latest news on RE/MAX, please visit news.remax.com.

The description
The RE/MAX National Housing Report is distributed each month on or around the 15and. The first report was distributed in August 2008. The report is based on MLS data in approximately 51 metropolitan areas, includes all residential property types, and is not annualized. For maximum representation, many of the nation’s largest metropolitan areas are represented, and an attempt is made to include at least one metro from each state. Definitions of metropolitan areas include specific counties established by the US Government’s Office of Management and Budget, with some exceptions.

Definitions
Transactions is the total number of residential transactions concluded during the given month. The monthly inventory supply 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 (pending) during the month. When “pending” data is not available, this calculation is performed using closed transactions. Days on Market is the number of days between when a property is listed and when the property goes under contract for all residential properties sold during the month. The median selling price is the median of the median selling prices in each of the metropolitan areas included in the survey.

MLS data is provided by contracted data aggregators, RE/MAX brokers and regional offices. Although MLS data is believed to be accurate, it cannot be guaranteed. MLS data is constantly updated, making any analysis a snapshot at any given time. Each month, the RE/MAX National Housing Report recalculates data from the previous period to ensure accuracy over time. All raw data remains the intellectual property of each local MLS organization.

SOURCE RE/MAX, LLC