The rate of home sales and the median sale price for homes in the U.S. both declined in August, indicating that the frenzied pace of transactions seen most of this year could finally be slowing, RE/MAX reported.
Month over month, home sales were down 3.5%, and the median sale price declined 1.2% to $335,000, according to the company. Despite the declines, however, the housing market remains hot, RE/MAX said, noting that days on market for homes in August was a scant 24 days and months supply of inventory was just 1.3, reversing two months of supply gains.
“The slight seasonal decline in home sales from July to August was countered by this being the second-highest August sales total in the 13-year history of our report. So, although we appear to be past the blistering summer peak, the market is still very active,” RE/MAX President Nick Bailey said in a press release. “In fact, the drop in home prices might signal to potential sellers that it’s time to get off the fence in case they fall further, which in turn could draw more buyers back into the mix. In any case, it seems likely that the combination of super-quick sales and a severe lack of inventory will be with us for the foreseeable future.”
Year over year, the median sales price was up 13.2% in August, while inventory was down 26.7%, and home sales were up 0.6%, RE/MAX reported.
By metro area, New York led by year-over-year sales percentage increase, at 55.1%, while Boise, Idaho, had the highest annual increase in median sales price, at 30.6%. Nashville, Tenn., and Cincinnati tied for the fewest days on market, at 10, while Des Moines, Iowa, homes were on the market the longest, at 83. Albuquerque, N.M.; Raleigh-Durham, N.C.; Seattle; Denver; and Charlotte, N.C. tied for the lowest months supply of inventory, at 0.6.