The November RE/MAX National Housing Report recently released, reporting that October home sales increased 2.5 percent year-over-year—keeping 2017 prices ahead of 2016.
In terms of inventory, the report found that October’s supply decreased to 3.3 percent, representing the lowest for any October since the housing report began tracking data nine years ago.
Median sales prices are now $224,000, which is an increase of 3.3 percent compared to October 2016.
According to Adam Contos, RE/MAX Co-CEO, the housing market is steady and at least somewhat predictable with record-low inventory and increasing prices in markets across the country.
“With job growth and increased household formation, buyers will struggle and may even be priced out of the market until homebuilding catches up,” Contos said.
Thirty-seven of the 53 metro areas RE/MAX tracks experienced increases in sales year-over-year. Meanwhile, the average number of home sales for all metros decreased to 3.4 percent in October compared to the previous month. However, home sales increased 2.5 percent compared to October of last year.
The report also noted significant changes in the most recent data. Days on the market increased by two days, from 49 in September to 51 in October—but decreased by seven days from October 2016.
In addition, the month’s supply of inventory experienced a decrease of 6.3 percent from September 2017, and dropped 13.4 percent from October 2016.
Based on the rate of home sales in October, the Months Supply of Inventory decreased to 3.3 from September 2017 at 3.6, compared to October 2016 at 3.9.
According to RE/MAX, a 6.0-months supply indicates a market balanced equally between buyers and sellers. In October 2017, 50 of the 53 metro areas surveyed reported a months supply at or less than 6.0, which is typically considered a seller’s market.