RE/MAX President: ‘Home Buyers Are Driving This Very Active Market’

The market conditions seen in the first half of 2021, largely dominated by low housing supply and robust purchasing demand, have continued into the beginning of the second half of the year, according to the RE/MAX National Housing Report for July 2021. Defying what at this point has become a trend – after years of constricted housing inventory – July inventory uncharacteristically climbed 4.0% from June, marking the first two consecutive months of month-over-month inventory gains since April and May 2019. The bump in inventory is welcome news for buyers who may have been sitting on the fence, but many experts hope this gain is only the beginning in the steep climb back to a more balanced market.

For context, while July inventory grew from June, July’s 1.3 Months of Inventory set a new report low for the month. In fact, a six months supply indicates a market balanced equally between buyers and sellers so there’s a lot of ground to make up. RE/MAX, LLC President Nick Bailey predicts that despite the persisting challenges, the housing market will likely continue on this feverish streak.

“The market should continue to run hot, especially if interest rates remain low, prices stabilize a bit, and more sellers jump in to take advantage,” Bailey said.

And he’s right. New listings are selling quickly. The July report saw an average of 23 Days on Market (the number of days between when a home is first listed in an MLS and a sales contract is signed). It was a record low for the housing report dating back to 2009 as well as a new low for the month of July. While the RE/MAX report measures 53 metros nationwide, soaring home prices – often a result of tight supply – is a trend being seen around the world.

Christopher Alexander, Senior Vice President of RE/MAX Canada, said in a recent report that the Greater Toronto Area’s housing market continues to “fire on all cylinders.” Adds Alexander: “Overall home sales topped 70,000 between January and June, the strongest first half in the history of the Toronto Regional Real Estate Board, while values smashed through record levels set in previous years. Without a serious influx of new listings to ease the upward pressure on pricing in the coming months, the market will likely continue on this upward trajectory.”

In the past 13 months, RE/MAX has seen the top three months of sales activity in its 13 years of compiling this report.

“That says a lot about today’s buyers,” Bailey said. “Given all the factors favoring sellers right now, it’s the buyers who are driving this very active market.”

Needless to say, there’s a lot to know about this housing market. Here’s the need-to-know data in the latest RE/MAX National Housing Report:

1. Home Sales Took a Seasonal Dip

Of the 53 metro areas surveyed in July 2021, the overall average number of home sales is down 8.4% compared to June 2021, and down 3.1% compared to July 2020. Leading the year-over-year sales percentage decrease were Salt Lake City, UT at -22.5%, Dallas/Ft. Worth, TX at -20.8%, and Boise, ID at -20.3%. With year-over-year comparisons skewed by the pandemic, the June-to-July averages for 2015-2019 illustrate what’s typical in mid-summer for sales: The third largest total in the 13-year history of the report, July 2021 home sales dropped 8.4% – nearly identical to the 2015-2019 average decline of 8.2%. Year over year, sales were down 3.1%. The only months with more sales than July 2021 were June 2021 and July 2020.

2. Home Prices Went Up Year Over Year

In July 2021, the median of all 53 metro Median Sales Prices was $331,000, down 1.2% compared to June 2021, and up 16.2% from July 2020. No metro areas saw a year-over-year decrease in Median Sales Price. Forty-five metro areas increased year-over-year by double-digit percentages, led by Boise, ID at +35.7%, Phoenix, AZ at +28.2%, and Augusta, ME at +24.0%.

3. Some Metros Are Seeing Homes Sell in 10 Days or Less

(Buyers, don’t stress: unsolicited deep breathing resource recommendation here)

The average Days on Market for homes sold in July 2021 was 23, down one day from the average in June 2021, and down 21 days from the average in July 2020. The metro areas with the lowest Days on Market were Cincinnati, OH at 9, Nashville, TN at 10, and Omaha, NE at 11. The highest Days on Market averages were in Miami, FL at 76, Des Moines, IA at 75, and New York, NY at 63.

PSA: Smart decisions and quick action might be the only things setting apart one homebuyer from another in these conditions. If you’re looking to buy or sell this summer or fall, a RE/MAX agent can provide help, information, guidance on making a competitive offer and expertise on all things real estate.

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