In July, home sales grew 2.4%, ending a nine month climb of year-over-year inventory growth, according to the RE/MAX National Housing Report.
RE/MAX reports the number of homes for sale fell 1.4% from 2018’s level and 0.2% from the previous month. This decline represents the smallest month-over-month decrease since July 2013.
“The housing market has been a bit uneven since the early spring, with each encouraging month seemingly followed by one with lukewarm results,” Contos said. “It’s possible the housing market has finally shaken some mud off its boots and can maintain its momentum for the back half of the year. If the broader macro environment hangs on, we could see a potentially strong finish to 2019.”
According to RE/MAX, July posted a 2.7-month supply of inventory, falling from 3.3-month supply in July 2018. Additionally, homes spent 43 days on the market, which is two days longer than they did last year.
The median price for a home was $273,00 in July, rising 9.2% from last year. Even with the increase from a year ago, July’s median price was below June’s all-time record high of $276,000.
“Home prices have risen, year over year, in 88 of the last 90 months dating back to February 2012,” Contos said. “Although lower interest rates help affordability, we have now seen two straight months of accelerating price increases. If the trend continues, it’s not an encouraging development for buyers.”
NOTE: The RE/MAX National Housing Report is based on MLS data in approximately 53 metropolitan areas, including all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state.