Inventory Grows from June While Home Prices, Sales Take Seasonal Dip
DENVER — 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. At the same time, July’s 1.3 Months of Inventory set a new report low for the month. July home sales were the third largest total in the report’s 13-year history, although they declined 8.4% from June – a seasonal norm. The July median home price of $331,000 decreased 1.2% from June’s record $335,000.
“The month-over-month gain in inventory, extending a short trend that started in June, was great news – even though the shortage of listings remains a major challenge,” says Nick Bailey, President, RE/MAX, LLC. “Some buyers have stepped away in light of high prices, seller expectations, multiple offers and intense competition, but new listings are still selling quickly. Clearly, the demand is still there. 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.”
With year-over-year comparisons skewed by the pandemic, June-to-July averages for 2015-2019 illustrate what’s typical in mid-summer:
- The month-over-month decline of 1.2% in July’s Median Sales Price was less than the 2015-2019 average June-to-July drop of 2.2%. Year over year, the Median Sales Price is up 16.2%.
- The 4.0% increase in month-over-month inventory was atypical for this time of year – and a far cry from the 2015-2019 average June-to-July decline of 1.6%. Although this marked the second consecutive month of gain (June inventory grew 1.9% from May), inventory remains down 29.7% year-over-year.
- 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.
Bailey continues: “In the past 13 months, we’ve seen the top three months of sales activity in 13 years of doing this report. That says a lot about today’s buyers. Given all the factors favoring sellers right now, it’s the buyers who are driving this very active market.”
July’s average Days on Market of 23 was one day less than June and 21 days faster compared to the same time last year. July’s 1.3 Months Supply of Inventory was identical to June’s, but significantly less than July 2020’s 2.0 Months Supply.
Highlights and the local markets leading various metrics for July include:
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%.
Median Sales Price – Median of 53 metro median prices
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%.
Days on Market – Average of 53 metro areas
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. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Months Supply of Inventory – Average of 53 metro areas
The number of homes for sale in July 2021 was up 4.0% from June 2021 and down 29.7% from July 2020. Based on the rate of home sales in July 2021, the Months Supply of Inventory was flat at 1.3 compared to June 2021 and decreased compared to 2.0 in July 2020. A six months supply indicates a market balanced equally between buyers and sellers. In July 2021, of the 53 metro areas surveyed, zero metro areas reported a months supply at or over six, which is typically considered a buyer’s market. The markets with the lowest Months Supply of Inventory were Albuquerque, NM at 0.5, Raleigh-Durham at 0.6, followed by a three-way tie between Indianapolis, IN, Charlotte, NC, and Seattle, WA at 0.7.