🏡🔑RE/MAX National Housing Report June 2022!🏡🔑
Sunday, July 31, 2022
Michael Kozlowski #1 Individual RE/MAX Agent in the State of Colorado Selling Homes for as High as $250,000 Over Asking Price in 2022!
DENVER — Halfway through the peak summer buying season, this year’s home sales are falling short of 2021’s, as signs of more balance in the market take hold.
• June posted the most home sales of any month thus far this year, topping May by 4.7% but falling 17.6% short of June 2021.
• Inventory grew for a third consecutive month by a whopping 34.1% over May and 27.5% year over year.
• While up 11% year over year, the Median Sales Price of $428,000 inched just 0.6% above May’s.
Bolstering the inventory was a 7.7% increase in new listings month over month, which was an increase of 1.6% over June 2021. Months Supply of Inventory jumped from 0.9 in May to 1.4 in June. A year ago, Months Supply of Inventory was 1.0.
“The market is moving toward greater balance, especially with inventory gains and the slowing of price appreciation. The past few years have been one of the most competitive times ever for buyers – and we’re finally seeing conditions ease up,” said Nick Bailey, President and CEO. “It’s due partly to the rise in interest rates – although buyers are also finding solutions in ARMs, FHA products and other financing – but even more significant is the increase in listings after several years of instant sales and low inventory. Markets like Nashville and Phoenix saw an increase in new listings of over 20 percent last month, bringing new options for buyers who may have sidelined themselves in the frenzy of last year."
Added RE/MAX Professionals Sales Associate/OwnerNate Martinez, who is based in Phoenix, AZ, “The Phoenix metro area is in the process of a market shift from a red-hot market to more of a balanced market. With inventory increasing, we’re seeing more opportunities for buyers, a leveling of home prices and a reduction in homes selling with multiple offers.”
The average Close-to-List Price Ratio in June was 102%, meaning that homes, in general, sold for 2% more than the asking price. That dropped from 103% in May and matched June 2021. Homes spent an average of 25 days on the market in June.
Highlights and the local markets leading various metrics for June include:
Of the 53 metro areas surveyed in June 2022, the number of newly listed homes is up 7.7% compared to May 2022, and up 1.6% compared to June 2021. Leading the year-over-year new listings percentage increase were Phoenix, AZ at +34.1%, Nashville, TN at +22.8%, and Philadelphia, PA at +21.8%. The markets with the biggest decrease in year-over-year new listings percentage were Kansas City, MO at -18.5%, Honolulu, HI at -15.9%, and Hartford, CT at -15.6%.
Of the 53 metro areas surveyed in June 2022, the overall number of home sales is up 4.7% compared to May 2022, and down 17.6% compared to June 2021. The markets with the biggest decrease in year-over-year sales percentage were Miami, FL at -35.1%, San Diego, CA at -33.1%, and Coeur d’Alene, ID at -32.2%. No metro area had a year-over-year sales percentage increase.
Median Sales Price – Median of 53 metro area prices
In June 2022, the median of all 53 metro area Sales Prices was $428,000, up 0.6% compared to May 2022 and up 11.0% from June 2021. Only one metro area saw a year-over-year decrease in Median Sales Price – Trenton, NJ at -1.2%. Thirty-nine metro areas increased year-over-year by double-digit percentages, led by Dallas, TX at +29.3%, Tampa, FL at +27.9%, and Fayetteville, AR at +27.3%.
Close-to-List Price Ratio – Average of 53 metro area prices
In June 2022, the average Close-to-List Price Ratio of all 53 metro areas in the report was 102%, down from 103% compared to May 2022, and flat compared to June 2021. The Close-to-List Price Ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price. The metro areas with the lowest Close-to-List Price Ratio were Coeur d’Alene, ID and Miami, FL, which tied at 97%, followed by Bozeman, MT and New Orleans, LA, which tied at 99%. The highest Close-to-List Price Ratios were in San Francisco, CA at 109%, and Burlington, VT at 107%, followed by a five-way tie between Boston, MA, Richmond, VA, Manchester, NH, Hartford, CT, and Trenton, NJ at 105%.
Months’ Supply of Inventory – Average of 53 metro areas
The number of homes for sale in June 2022 was up 34.1% from May 2022 and up 27.5% from June 2021. Based on the rate of home sales in June 2022, the Months’ Supply of Inventory increased to 1.4 compared to 0.9 in May 2022, and increased compared to 1.0 in June 2021. In June 2022, the markets with the lowest Months’ Supply of Inventory were Charlotte, NC and Manchester, NH, tied at 0.4, followed by Albuquerque, NM at 0.5.
Monday, July 11, 2022
Denver Real Estate Market Update July 2022!
Michael Kozlowski #1 Individual RE/MAX Agent in the State of Colorado! Selling homes in 2022 up to $250,000 Over Asking Price! Check us out at: www.team-koz.com
HOUSING INVENTORY GROWS!!!
In January, we predicted that we could see two very different halves of the year, and that Inflation would be the determining factor for much of our Market change! As we analyze the Housing data for the Denver Metro Area at the close of June, and the first half of the year for 2022 we are seeing some fairly major changes right before our eyes.
The Media is reminding us daily that the Stock Market had a miserable first 6 months, that Cryptocurrency has fallen dramatically, and that Inflation is at the highest numbers since 1971, and Mortgage Rates have risen quickly, but the media has not shared how resilient the Real Estate Market is and has been this year! The strongest indicators in Housing continue to be Supply and Demand, and those fundamentals have not changed.
Let’s talk about Supply! We have heard about the “Shift in the Market”, and supply definitely made the biggest Shift in the last month.
- We ended June with 6,057 Active Listings on the Market, and that is 94% higher than June of 2021!
- New Listings in 2022 are almost the same as this time last year, so the other Shift was a slight decrease in Demand over the last 30-60 days!
Buyers seem to be willing to take a little pause on the market, and time will tell if it’s from a temporary burnout from a very difficult to compete market earlier this year, or possibly higher Mortgage rates or maybe just that Buyers wanted to enjoy the month of June and beginning of Summer. It is probably a combination of all three!
If you are a Seller, it is not a time to panic! You may have missed the Peak of the Market this year, but the market demand remains strong as Buyers need a home and a roof over their heads! Sellers, Pricing is the single most important decision when listing your home and is also based on your condition and location. Please take the time to prepare your home for showings and expect to realign your expectations just a little! The homes that show well, are still selling quickly with a realistic price but remember your Sold Comps may not be the best from March or April.
If you are a Buyer in this market and have been frustrated by the process and competition you can celebrate and get busy now. You don’t want to procrastinate buying your next home, as prices are normalizing but probably not going down substantially. You will want to reengage or get started again soon, as we can’t predict what Mortgage rates will do in the future and could easily go up again!