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NewHome prices drop and sales soar – Real Estate News

According to data from August from the RE/MAX National Home Survey, home sellers generally accepted offers below their list prices in August which is another sign of rebalancing in the housing market. In the report’s 51 metropolitan areas the average Close-to-List Price Ratio in August was 99%, meaning that homes sold at 1% less than the asking price. It was lower than 101 percent in July, and 104 percent in April. This improvement resulted in sales for August being 5.3% higher than July. Meanwhile, the Median Sales Price declined 2.4 percent to $410,000 after peaking at $426,000 just three months earlier.

At the same time the number of new listings fell 12.8% from July and inventory decreased 1.8 percent after four months of double-digit growth. Despite that, the amount of houses available 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.”

Two-thirds of the way through 2022 the home sales have decreased every month when compared to 2021. Other important metrics 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, four days higher than July and 3 days longer than August 2021.
  • The August Median Sales Price was $410,000, which is 2.4 less than July’s median price, but was up 7% year over year.

Highlights and local market indicators in August are:

New Listings (and get more Real Estate insights)
Of the 51 metro regions surveyed in August 2022, the number of homes newly listed decreased by 12.8% as compared to July 2022, and down 13.1% compared to August 2021. The markets with the biggest decline in year-over-year new listings percentage were Dover, DE at -59.4%, Milwaukee, WI at -33.6 percent, 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%, Raleigh, NC at +10.7 percent as well as New Orleans, LA at +8.4%.

Active Inventory: 

5 Markets that have the Most YoY Decline

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 areas surveyed in August 2022, the overall number of home sales was up 5.3 percent as compared to July 2022 and down 20.1 percent when compared to the month of August 2021. The metro areas with the largest decline in the year-over-year sales percentage included Bozeman, MT at -44.1 percent, Las Vegas, NV at -37.3% as well as Phoenix, AZ at -31.4 percent. No metro area had an increase in year-over-year sales percentage.

Closed Transactions: 

5 Markets that have the Largest YoY decrease

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 metropolitan area prices 

In August 2022, the median price of all 51 city sales prices reached $410,000, which is down 2.4% compared to July 2022 but up 7.0% over August 2021. Two metro areas saw a year-over-year decrease in median sales prices, San Francisco, CA at -4.2 percent and Honolulu, HI at -0.7%. Twenty metro areas saw their prices rise year-over year by double-digit percentages. The top three were Fayetteville, AR at +20.4%, Tampa, FL at +19.4 percent and Orlando, FL at +17.5%.

Median Sales Price: 

5 Markets that have the Largest 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 metro area prices 

In August 2022, the average close to list price ratio of all 51 metro areas reported was 99 percent, which is down from 101% when compared to July 2022 and from 102% when compared to August 2021. The ratio of close-to-list price is calculated using the average of the sale price multiplied by the price of the list in each transaction. If the ratio is higher than 100%, then the home was sold for more than its list price. If it’s less than 100%, the property was sold for less than its list price. The metropolitan areas with the lowest close-to-list price ratio included Washington, DC at 84%, followed by a tie between Bozeman, MT and Coeur d’Alene, ID at 97%. The highest close-to-list price ratios were found in Burlington, VT at 104% and a tie between Hartford, CT and Manchester, NH at 103%.

Close-to-List Price Ratio: 

5 Markets that have the Most 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 days on market for homes sold in the month of August 2022 was 27, up four days from the average in July 2022 and up three days from the average of August 2021. The metro areas with the lowest number of days on market were Dover, DE at 10, Baltimore, MD at 11, followed by 2-way tie between Philadelphia, PA and Washington, DC at 13. The highest days on average for market days were in Fayetteville, AR at 63, followed by an even tie between New York, NY and Seattle, WA at 47. Days on market refers to the time between the time a property is first put on the MLS and when a sale contract is signed.

Days on Market: 

5 Markets with 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” Supply of Inventory Average of 51 metropolitan areas 

The number of homes for sale in August 2022 was down 1.8 percent from July 2022, and increased by 20.0 percent over August 2021. Based on the pace of home sales during August 2022. The months’ inventory fell to 1.6 as compared to 1.7 in July 2022. It also was up from 1.2 in August 2021. In August 2022, the areas that had the lowest months’ supply of inventory were a tie between Albuquerque, NMand Manchester, NH at 0.7 followed by a tie between Charlotte, NC and Hartford, CT at 0.8.

Months Supply of Inventory: 

5 Markets that have the Biggest YoY Decrease

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 % 

 

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