Home sales hit a near-record month-over-month increase of 37% in June for RE/MAX, while inventory was at a record low of under two months, the company said in a press release.
Sales were down just 6.9% from June 2019, with all 53 of RE/MAX’s metro markets posting monthly gains.
“June home sales snapped back in a major way,” RE/MAX Holdings CEO Adam Contos said in the press release. “With historically low interest rates, stabilizing unemployment and increased mobility tied to working remotely, buyer demand remains high in most areas of the country. We’re seeing positives in several leading indicators such as pending sales and mortgage applications.”
Contos added that inventory continues to be the industry’s biggest problem. “There’s also some potential in the idea that with changing workplace dynamics, underused commercial spaces could be transformed into residential properties. Creative solutions like that may provide some relief for inventory constraints as well as affordability issues.”
Inventory dropped 27.9% from June 2019, lowering the month’s supply to 1.9 from the previous report low of 2.7 set in May.
The median sale price was $275,000, up 1.9% year over year and up 0.8% from May. That makes it the lowest year-over-year price increase since December 2018.
Transactions were up 36.2% month over month in Miami in June to 2,808, but down 30.8% from the previous year.
Miami had the highest percentage year-over-year median sales price increase at 11.1%. It was one of two cities that experienced a double-digit increase in June, with Indianapolis following with a year-over-year increase of 10%.
Anthony Askowitz, broker/owner, RE/MAX Advance Realty, said the opening of the state in May helped the June market.
“This is reflected in the 36.2% increase in June’s closed transactions over May’s numbers. While positive, we also need to acknowledge that we are down -30.8% from where we were in 2019’s healthy year,” he said.
According to Askowitz, supply is shrinking as hesitant sellers either withdraw from the market or wait to list.
“Supply in June was down -6.6% since May, and -18.5% over 2019,” he said. “The imbalance of supply and demand has put us in a sellers’ market and reduced not only the months’ supply of inventory (5.1 months’, a reduction of 32%) but also the number of days on the market from list to sold (88 days, a reduction of 12.9%).”
“All of the numbers are unique to our present situation. Miami has always been an attraction for buyers from northern states, such as New York. We are seeing an increase in demand from high-density states as confinement due to isolation requirements creates an urgency to own property with more space,” he said. “Add to that, the attraction of warm weather, lower real estate taxes, no state income tax, and a multicultural community, and we have a winning combination. For the time being, we are still seeing increases in value, especially in single-family homes.”