Home Sales Post Near-Record Turnaround Despite Inventory Constraints
RE/MAX, LLC announced today June home sales posted a near-record 37% gain over a pandemic-impacted May while Months Supply of Inventory dropped below two months for the first time in the report’s 12-year history.
Overall, U.S. home sales returned to near seasonal levels – just 6.9% lower than last June, which was the third-highest sales month of 2019. All of the report’s 53 metro markets posted gains over May and a third of them topped last June. The June results were far different than those of May and April, which both reflected widespread stay-at-home mandates in many states.
Sales Increase:
- The 37% increase in sales from May to June was the third-highest month-over-month turnaround in the report’s history. The 12-year average for May-to-June sales increases is 8.4%.
Inventory Drop:
- Going in the opposite direction, inventory dropped 27.9% year over year, pushing the Months Supply of Inventory to 1.9 from the previous report low of 2.7 months set in May. The number of homes for sale is at low levels not seen consistently since early 2018.
June’s Median Sales Price of $275,000 is up 1.9% year over year, the lowest year-over-year price increase of any month since December 2018’s 0.4% price drop. Days on Market averaged 45, the same as the previous June. The number of homes for sale in June 2020 was down 5.3% from May 2020 and down 27.9% from June 2019. Based on the rate of home sales in June 2020, the Months Supply of Inventory decreased to 1.9 compared to 2.7 in May 2020, and decreased compared to 3.2 in June 2019. A six months supply indicates a market balanced equally between buyers and sellers. In June 2020, of the 53 metro areas surveyed, zero metro areas reported a month’s supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory were Manchester, NH at 0.7, and a tie between Albuquerque, NM, and Boise, ID at 0.8.
