Housing report

RE/MAX National Housing Report for May 2022

Home sales may decline year over year as inventory increases

DENVER, June 17, 2022 /PRNewswire/ — Although May is one of the busiest months of the year for home sales, closings in May 2022 were 8.5% lower than May 2021. However, they rose 5.8% from April. This month-over-month increase was about half the average gain in May during the pre-pandemic years of 2015-2019.

After a long decline, inventories rose for the second month in a row, making May the first month of 2022 with the highest inventory levels compared to a year ago. The month of May ended with 16.3% more homes for sale than in April, and 2.2% more than in May 2021. The monthly inventory supply fell from 0.8 in April to 0.9 in May. A year ago, months of inventory supply was 1.0.

The median selling price of $430,000 increased by 1.2% compared to April $425,000 and was 13.2% higher than $380,000 Saved in May 2021. The average close-to-list price ratio in May was 103%, meaning homes sold for 3% above asking price. This compared to almost 104% last month and 102% in May 2021.

Homes spent an average of 23 days on the market in May. They sold out three days faster than in April and two days faster than a year ago.

“A drop in home sales isn’t entirely unexpected given the higher mortgage rate environment, but the inventory gains are good news for buyers who are now starting to see a few more listings hitting the market. market when looking for a house,” said Nick Bailey, Chairman and CEO. “There are options in multi-family and single-family housing that weren’t available just a few months ago. Affordability remains a concern, but homebuyers are regaining some control that has been long overdue.”

Tim Yeepresident and broker of RE/MAX Gold in the Bay Area, expects stocks to continue to improve over time.

“It looks like the long-awaited market shift has arrived in the Bay Area. Inventories are starting to rise, and the extraordinary rate of price increases of the past few years appear to have eased somewhat, Yee added. “It’s not the dramatic change that some have predicted, but rather a cooling of what was a sizzling market. Homes in prime areas are still seeing multiple offers and still selling for more than asking, but sellers are for the most are learning to moderate their expectations and in some areas we are actually seeing price reductions.”

Highlights and local markets leading various metrics for May include:

Closed deals Of the 51 metropolitan areas studied in May 2022the total number of home sales is up 5.8% compared to April 2022and down 8.5% compared to May 2021. The markets with the largest year-over-year sales percentage decline were Los Angeles, CA at -24.4%, Miami, Florida at -22.4%, and San Diego, California at -20.4%. Leading the year-over-year sales percentage increase are Burlington, Vermont at +16.1%, Manchester, NH at +6.4%, and Honolulu, Hawaii at +4.9%.

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

Market

May 2022
Transactions

May 2021
Transactions

Year after year
% To change

Los Angeles, CA

7,553

9,991

-24.4%

Miami, Florida

8,835

11,392

-22.4%

San Diego, California

2,858

3,591

-20.4%

Trenton, New Jersey

332

410

-19.0%

washington d.c.

8,673

10,391

-16.5%

Median Sale Price – Median of prices of 51 metropolitan areas
In May 2022the median selling price of the 51 metropolitan areas was $430,000up 1.2% compared to April 2022and up 13.2% compared to May 2021. No metro area saw a year-over-year decline in median selling price. Thirty-nine metropolitan areas grew year-over-year by double-digit percentages, led by Kansas City, Missouri at +32.9%, Fayetteville, AR at +28.8%, and Tampa, Florida at +28.4%.

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

Market

May 2022
Median selling price

May 2021
Median selling price

Year after year
% To change

Kansas City, Missouri

$321,000

$241,500

+32.9%

Fayetteville, AR

$334,862

$260,000

+28.8%

Tampa, Florida

$375,000

$291,965

+28.4%

Las Vegas, Nevada

$450,000

$355,000

+26.8%

Orlando, Florida

$391,000

$310,000

+26.1%

Price ratio close to the list – Average of prices of 51 metropolitan areas In May 2022the average price ratio close to the list of 51 metropolitan areas in the report was 103.3%, down 0.2% from April 2022and up 1.6% compared to May 2021. The close-to-list price ratio is the average value of the sale price divided by the list price for each transaction. When the number is greater than 100%, the house has closed for more than the listed price. If it is less than 100%, the house sold for less than the list price. The metropolitan areas with the lowest near-list price ratio were Miami, Florida at 98.1%, New Orleans, LA 99.2% and Coeur d’Alene, 99.9% ID. The highest near-list price ratios were in San Francisco, California at 111.3%, Burlington, Vermont at 106.7%, and Richmond, Virginia at 106.5%.

Price ratio close to the list:
5 markets with the highest year-over-year increase

Market

May 2022
close to the list
Price report

May 2021
close to the list
Price report

Year after year
}% To change

Dallas, TX

104.7%

98.4%

+6.4%

Burlington, Vermont

106.7%

100.6%

+6.0%

Trenton, New Jersey

105.2%

101.3%

+3.9%

Los Angeles, CA

103.3%

99.6%

+3.8%

Omaha, NE

103.7%

100.1%

+3.6%

Days on Market – Average of 51 metropolitan areas
The average number of days on the market for homes sold in May 2022 was 23, three days younger than the average in April 2022and down two days from the average in May 2021. Metropolitan areas with the lowest market days were Dover, DE at 8, followed by a tie at three between Baltimore, MD, Denver, COand washington d.c. to 9. The highest Days on Market averages were Fayetteville, AR at 63, Raleigh, North Carolina at age 47, and New York, NY to 43. 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

Market

May 2022
Days on market

May 2021
Days on market

Year after year
% To change

Dover, DE

8

19

-56.0%

Trenton, New Jersey

12

23

-48.1%

Philadelphia, Pennsylvania

12

23

-47.5%

Miami, Florida

35

64

-45.3%

New Orleans, LA

27

48

-45.2%

Months of inventory supply – Average of 51 metropolitan areas
The number of houses for sale in May 2022 increased by 16.3% compared to April 2022 and up 2.2% compared to May 2021. Based on home sales rate in May 2022monthly inventory supply increased to 0.9 from 0.8 in April 2022 and decreased from 1.0 in May 2021. In May 2022markets with the lowest months of inventory supply were tied at three between Albuquerque, New Mexico Manchester, NHand Milwaukee, Wis. at 0.4.

Inventory Supply Months:
5 markets with the highest year-over-year increase

Market

May 2022
Month’
Inventory supply

May 2021
Month’
Inventory supply

Year after year
% To change

Coeur d’Alene, ID

1.6

0.8

+111.9%

Salt Lake City, UT

0.9

0.4

+110.8%

Bozeman, Montana

1.9

1.0

+92.9%

Denver, CO

0.6

0.3

+81.0%

Las Vegas, Nevada

1.4

0.8

+72.6%

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Report Details

Starting with the April 2022 report, RE/MAX uses a new source of aggregated data.

The RE/MAX National Housing Report is distributed monthly on or about the 15th. The report is based on MLS data for the month indicated in 51 metropolitan areas, includes single-family residential property types, and is not annualized. For maximum representation, the largest metropolitan areas in the country are represented and an attempt is made to include at least one metropolitan area in nearly every state. Metropolitan areas are defined by Central Statistical Areas (CBSAs) established by the US Office of Management and Budget.

Definitions

Closed deals are the total number of residential deals closed in 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 listings) during the month. When “pending” data is not available, an inferred pending status is calculated using closed transactions. Days on Market is the average number of days between when a property is listed and when the property is under contract. The median selling price for a metropolitan area is the median selling price of transactions made in that metropolitan area. The nationwide median selling price is calculated at the nationwide aggregate level using all included metropolitan area selling prices. The near list price ratio is the average value of the sale price divided by the list price for each closed transaction.

MLS data is provided by Seventy3, LLC, a RE/MAX Holdings company. Although MLS data is believed to be reliable, it cannot be guaranteed. MLS data is constantly updated, making any analysis a snapshot at any given time. Each month, data from the previous period is updated to ensure accuracy over time. Raw data remains the intellectual property of each local MLS organization.

SOURCE RE/MAX, LLC