Home sales increase as prices plummet, but supply slump – Home Sales News

According to August’s data in the RE/MAX Housing National Report home sellers, on average, accepted offers below their list prices in August – a further indication of rebalancing in the housing market. Across the report’s 51 metro areas the average Close-to-List Price Ratio was 99% in August, meaning that homes sold for 1 percent less than the asking price. It was lower than 101% in July and 104% in April. This shift resulted in sales for August being 5.3% higher than July. Meanwhile, the Median Sales Price fell 2.4% to $410,000 after a peak of $426,000 three months earlier.

In the same time the number of new listings fell 12.8 percent from July and inventory decreased 1.8% after 4 months of growth that was double-digit. Despite that, the total number of homes for sale was 20 percent higher than the number in August 2021.

“Patient buyers were rewarded in August, as prices softened from July. Sales increased as buyers ‘bought the dip’ – which was not the trend many people were expecting. The activity modestly depleted inventory, although the number of homes for sale remains significantly higher than this time a year ago,” said Nick Bailey, RE/MAX President and CEO. “The late-summer burst of activity underscores the housing market’s resiliency. Despite the uptick in interest rates and concerns about the economy, demand remains strong. We’ll see what happens from here, but the August bump in sales was great news for the industry.”

Add RE/MAX Executive Realty estate agent Gina Mayes Harris, who is based in Charlotte, NC, “The Charlotte market is showing strength for both buyers and sellers with homes now selling at market value. Buyers are no longer bidding against each other to extremes, and while sellers are not seeing the same level of price appreciation gains as they have in the past year or two, we expect continued low single-digit appreciation in the coming months and year. All signs point to a more balanced market providing plenty of opportunities for buyers and sellers.”

The second-third of the way through 2022, home sales have declined every month when compared to 2021. Other noteworthy indicators include:

• Months Supply of Inventory was 1.6 months in August, a decline from 1.7 in July, but an increase when compared to 1.2 in August 2021.
• The average number of days on market was 28 days, four days more than July and 3 more days than August 2021.
• August’s Median Sales Price of $410,000 was 2.4% below July but was up by 7 percent year-over-year.

Highlights and local market indicators for August include:

New Listings (and get more Real Estate insights)
Of the 51 metro regions surveyed in August 2022, the amount of homes that were newly listed was down 12.8 percent compared to July 2022 and down 13.1 percent compared to August 2021. The areas with the largest decrease in year-over year number of listings are Dover, DE at -59.4 percent, Milwaukee, WI at -33.6%, and St. Louis, MO at -27.1%. Leading the way in increased year-over-year percentage of new listings was Washington, DC at +13.2 percent, Raleigh, NC at +10.7 percent as well as New Orleans, LA at +8.4 percent.

Active Inventory:  5 Markets with the Largest YoY Decrease
Market	Aug 2022  New Listings	Aug 2021  New Listings	Year-over-  Year %  Change
Dover, DE	442	1,090	-59.4 %
Milwaukee, WI	1,695	2,554	-33.6 %
St. Louis, MO	4,302	5,902	-27.1 %
Bozeman, MT	234	314	-25.5 %
Anchorage, AK	637	847	-24.8 %

Closed Transactions 

Of the 51 metro regions surveyed in August 2022, the total amount of homes sold was up 5.3 percent when compared to July 2022, and down 20.1% compared to August 2021. The areas that saw the biggest decrease in year-over-year sales percentage included Bozeman, MT at -44.1%, Las Vegas, NV at -37.3% as well as Phoenix, AZ at -31.4%. The metro areas that did not show an increase in year-over year sales percentage.

Closed Transactions:  5 Markets that have the Largest YoY Decline
Market	Aug 2022  Transactions	Aug 2021  Transactions	Year-over-  Year %  Change
Bozeman, MT	175	313	-44.1 %
Las Vegas, NV	2,654	4,235	-37.3 %
Phoenix, AZ	5,902	8,605	-31.4 %
San Diego, CA	2,590	3,769	-31.3 %
Salt Lake City, UT	1,262	1,835	-31.2 %

Median Sales Price – Median of 51 metro area prices 

In August 2022 the median of all the metropolitan area sales was $410,000, down 2.4% compared to July 2022 and up 7.0% from August 2021. Two metro areas saw a year-over-year decrease in median sales prices, San Francisco, CA at -4.2% and Honolulu, HI at -0.7 percent. Twenty metro areas increased year-over-year by double-digit percentages, led by Fayetteville, AR at +20.4 percent, Tampa, FL at +19.4 percent, and Orlando, FL at +17.5%.

Median Sales Price:  5 Markets that have the Biggest YoY increase
Market	Aug 2022  Median Sales  Price	Aug 2021  Median Sales  Price	Year-over-  Year %  Change
Fayetteville, AR	$325,000	$270,000	+20.4 %
Tampa, FL	$370,000	$310,000	+19.4 %
Orlando, FL	$387,765	$330,000	+17.5 %
Atlanta, GA	$385,000	$330,493	+16.5 %
Charlotte, NC	$400,000	$344,500	+16.1 %

Close-to-List Price Ratio – Average of 51 metropolitan area prices 

In August 2022, the close-to-list price ratio for all metropolitan areas reported was 99 percent, down from 101% compared to July 2022 as well as from 102% when compared to August 2021. The close-to-list price ratio is calculated as the average value of the sale price multiplied by the list price in each transaction. If the ratio is higher than 100 percent, the home closed for more than the list price. If the ratio is less than 100%, then the home sold for less than the list price. The metro areas with the lowest close-to-list price ratio included Washington, DC at 84 percent, followed by a tie between Bozeman, MT and Coeur d’Alene, ID at 97 percent. The highest close-to-list price ratios were recorded in Burlington, VT at 104 percent, followed by an even tie between Hartford, CT and Manchester, NH at 103%.

Close-to-List Price Ratio:  5 Markets with the Largest YoY decrease
Market	Aug 2022  Close-to-List  Price Ratio	Aug 2021  Close-to-List  Price Ratio	Year-over-  Year %  Change
Washington, DC	84.4 %	101.0 %	-16.5 %
San Francisco, CA	101.6 %	108.4 %	-6.3 %
Seattle, WA	98.6 %	104.3 %	-5.5 %
Raleigh, NC	100.5 %	104.3 %	-3.6 %
San Diego, CA	98.4 %	101.6 %	-3.2 %

Days on Market – Average of 51 metropolitan areas 

The average number of days on the market for homes that sold in August 2022 was days, which was up four days from the average of July 2022, and three days from the average in August 2021. The areas that had the lowest days on the market were Dover, DE at 10, Baltimore, MD at 11 and a two-way tie between Philadelphia, PA and Washington, DC at 13. The highest days on average for market days were in Fayetteville, AR at 63 and followed by an even tie between New York, NY and Seattle, WA at 47. Days on the market are the number of days between the time a property is first put on the MLS and when a contract for sale is executed.

Days on Market:  5 Markets that have the Largest YoY Increase
Market	Aug 2022  Days on  Market	Aug 2021  Days on  Market	Year-over-  Year %  Change
Bozeman, MT	39	20	+97.3 %
Salt Lake City, UT	35	19	+82.0 %
Denver, CO	26	14	+79.1 %
Tampa, FL	30	17	+77.4 %
Orlando, FL	33	20	+68.0 %

Months” Inventory Supply – Average of 51 metro areas 

The number of houses for to be sold in August 2022 fell by 1.8% from July 2022 and up 20.0% over August 2021. Based on the rate of homes sold in August 2022, the month’s inventory of inventory decreased to 1.6 as compared to 1.7 in July 2022. However, it was up from 1.2 in August 2021. In August 2022 the cities with the lowest months’ inventory was a tie between Albuquerque and New Mexico. Manchester, NH at 0.7 and a tie between Charlotte, NC and Hartford, CT at 0.8.

Months Supply of Inventory:  5 Markets that have the Largest YoY Decline
Market	Aug 2022  Months’ Supply  of Inventory	Aug 2021  Months’ Supply  of Inventory	Year-over-  Year %  Change
Hartford, CT	0.8	1.1	-28.7 %
Providence, RI	1.0	1.3	-24.3 %
Chicago, IL	1.8	2.3	-20.3 %
Tulsa, OK	0.9	1.1	-19.7 %
Cincinnati, OH	0.9	1.1	-18.8 %