For a second consecutive month, there was a year-over-year increase in the number of homes for sale in November. The culprit home sales declined for a fourth consecutive month when compared to the same months in 2017, because prices remained strong, according to the RE/MAX National Housing Report.
Across the 53 metro areas surveyed, inventory rose 3percent, the highest monthly year-over-year gain in the 10-year history of the report, following October's 1 percent increase that ended a streak of 119 months of year-over-year declines dating back to November 2008. The Month’s Supply of Inventory rose to 3.9, the highest for any month since the statistic was recorded at 4.2 in December 2016.
November home sales, meanwhile, declined 6.9 percent, which was the second-largest year-over-year decline of 2018 and the biggest year-over-year sales decline for November in five years. This year only April and July sales exceeded 2017 totals for the corresponding months.
"The road to market normalization can be bumpy," said Adam Contos, CEO of RE/Max. "It's good to see the small uptick in inventory, and the drop in November sales isn't too surprising--given the recent trends, the mid-term elections, and the earlier-than-usual Thanksgiving holiday. As we near year-end, three main themes appear clear: Buyers are grappling with affordability issues and tight inventory; sellers are unsure how to react to the cooling market; and homes are still selling quickly when priced right."
November's Median Sales Price of $235,000 was 4 percent higher than November 2017 and was the highest November price in the report's history. It marked the 32nd consecutive month of year-over-year price increases. Comparing the first 11 months of 2018 to 2017, home prices are up 6 percent.
Even with declining sales, homes sold at record speed in November. They spent an average of 51 days on market, compared to the previous November low of 54 days set last year.
Closed Transactions
Of the 53 metro areas surveyed in November 2018, the overall average number of home sales is down 10.1 percent compared to October 2018, and down 6.9% compared to November 2017. Nine of the 53 metro areas experienced an increase in sales year-over-year, including Burlington, V.T., 8.8. percent, Albuquerque, N.M., 6.8 percent, New Orleans, 5.4 percent and Tampa, 5.1 percent.
Median Sales Price
In November 2018, the median of all 53 metro Median Sales Prices was $235,000, equivalent to October 2018, and up 4 percent from November 2017. Only two metro areas saw a year-over-year decrease in Median Sales Price: Honolulu, dropped 2 percent, and Birmingham, AL., dropped 0.7 percent. Three metro areas increased year-over-year by double-digit percentages: Boise, Idaho, 18.2 percent, Las Vegas, 12.2 percent, and Wichita, Kansas, 11.4 percent.
Days on Market
The average Days on Market for homes sold in November 2018 was 51, up three days from the average in October 2018, and down three days from the November 2017 average.
The metro areas with the fewest days on market were Omaha, at 26; San Francisco, at 31; Boise, ID, and Nashville, TN, both at 33; and at 34, Salt Lake City, UT, Denver, CO, and Las Vegas. The most days on market averages were in Augusta, Maine, at 110; Hartford, Conn., at 90; and at 78, Chicago and Miami.
Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Month’s Supply of Inventory Average of 53 metro areas
The number of homes for sale in November 2018 was down 7.1 percent from October 2018 and up 3 percent from November 2017. Based on the rate of home sales in November, the Month’s Supply of Inventory increased to 3.9, from 3.5 in October 2018, and increased compared to November 2017 at 3.6. A six-month supply indicates a market balanced equally between buyers and sellers.
