Lack of inventory still the major factor in the housing market

by Steve Randall20 Jul 2018

Record high prices, record low inventory, and home sales trailing their 2017 levels.

The snapshot of the national housing market shows sales down 5.5% in June compared to a year earlier across the 54 metros surveyed by RE/MAX.

The median price was up 5.1% to $258,500, an all-time high in the report’s 9-year history and the 27th consecutive month of year-over-year price gains.

"Year-over-year prices have been climbing for more than two years now, which is great news for homeowners and sellers," said RE/MAX CEO Adam Contos. "In the hottest markets, demand is especially high because there simply aren't that many homes for sale. The slower sales figures we're seeing are tied to inventory more than anything else."

There was a year-over-year inventory decrease in 42 of the 54 metros surveyed with months of supply down to 2.7, the smallest ever recorded for June after an 8.8% decline year-over-year.

"Lack of inventory has become a theme for the year," Contos said. "Having fewer homes to choose from poses a challenge for buyers, who need to be ready to act decisively and quickly."

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