Housing report

RE/MAX National Housing Report for August 2020

DENVER, September 17, 2020 /PRNewswire/ — The surge in US home sales continued into August, reaching record highs for the month. August also set new reporting records for lowest inventory and days to market, as well as highest median selling price.

August home sales, continuing a torrid summer, were the highlight of the month. Year-over-year, home sales rose 4.3% and marked the third-highest total in the report’s 13-year history covering 53 metropolitan markets. July 2020 holds the report record for most home sales, followed by June 2017. Year-to-date, 2020 home sales trail 2019 by only 3% after being 9% lower through May.

“Demand for homes is easily eclipsing available inventory in metropolitan areas across the country. Buyers are advancing in record numbers, unfazed by inventory issues and consistently higher prices,” said Adam ContosCEO of RE/MAX Holdings, Inc. “Owners in a position to sell seize the opportunity – and benefit from the one-two combination of enthusiastic, competitive buyers and significantly faster turnaround times. In many ways, the current environment has advantages on both sides of the equation.”

As sales soared, the number of homes on the market in August plunged 29.6% year-over-year – to an all-time low. And in a related metric, the 1.7 months of inventory tied July for the lowest in reporting history.

This dynamic of high demand and low supply drove the median sale price to $290,000topped the previous report record of $285,000 set just a month ago in July. Prices increased by 11.5% August 2019the largest year-over-year increase in more than six years.

On average, homes spent only 41 days on the market, which July 2018 for the shortest duration in the report’s history. Fourteen markets reported 30 days or less from listing to contract signing. Compare that to August 2019while the average days on market was 45.

Closed deals
Of the 53 metropolitan areas studied in August 2020the overall average number of home sales is down 7.6% from July 2020and up 4.3% from August 2019. Leading the year-over-year percentage increase in sales, Chicago, IL at +20.1%, Boise, I.D. at +15.7%, and Hartford, Connecticut at +15.2%.

Median sale price – Median of the median prices of 53 metros
In August 2020the median of the median selling prices of the 53 metros was $290,000up 1.8% compared to July 2020and up 11.5% compared to August 2019. Thirty metropolitan areas grew year-over-year by double-digit percentages, led by Augusta, ME at +22.8%, Tulsa, okay at +21.8%, and Cincinnati, Ohio at +18.3%. Not a single metro area saw a year-over-year decline in median selling price.

Days on Market – Average of 53 metropolitan areas
The average number of days on the market for homes sold in August 2020 was 41, three days younger than the average in July 2020and down four days from the average in August 2019. Metropolitan areas with the lowest market days were Omaha, NE at 17 years old, Cincinnati, Ohio at 21, and a tie between Seattle, WA and Nashville, TN to 22. The highest Days on Market averages were Des Moines, Iowa at 92, Miami, Florida at age 89, and New York, NY to 83. 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.

Months of inventory supply – Average of 53 metropolitan areas
The number of houses for sale in August 2020 was down 6.1% from July 2020 and down 29.6% compared to August 2019. Based on home sales rate in August 2020months of inventory supply decreased to 1.7 from 1.9 in July 2020and decreased from 3.3 in August 2019. The markets with the lowest months of inventory supply were Boise, I.D. at 0.5, Albuquerque, New Mexico at 0.7, and a tie at seven between Hartford, Connecticut, Phoenix, AZ, Charlotte, North Carolina, Manchester, NH, washington d.c., Denver, COand Omaha, NE at 0.9.

For specific data in this report or to request an interview, please contact [email protected].

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 130,000 agents in more than 110 countries and territories. No one in the world sells more real estate than RE/MAX, as measured by residential transactions. Dedicated to innovation and change in the real estate industry, RE/MAX launched Motto Mortgage, a breakthrough 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 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 53 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.

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.