In November, growing housing inventory contributed to annual home sales increasing for the second consecutive month, according to the latest RE/MAX National Housing Report.
However, sales declined on a month-over-month basis for the fourth consecutive month. Despite this, RE/MAX notes that sales are comparably stronger to the same months in 2017.
Notably, the median sales price recorded its highest November increase ever, coming in at $235,000. This increase marked the 32nd consecutive month of year-over-year increases.
The report explains that when compared to the first 11 months of 2018 and 2017, home prices have risen 6%.
According to RE/MAX, the number of homes for sale in November, declined 6.9% from October. Unfortunately, this is the second-largest year-over-year decline of 2018, and the biggest year-over-year sales decrease for November in the last five years.
RE/MAX CEO Adam Contos said the road to market normalization can be bumpy.
"It's good to see the small uptick in inventory, and the drop in November sales isn't too surprising – given the recent trends, the mid-term elections, and the earlier-than-usual Thanksgiving holiday,” Contos said.
According to the company, of the 53 metro areas surveyed in November 2018, the overall average number of home sales is up 3% from October. This happens to be the highest monthly year-over-year gain in the reports’ 10-year history.
“As we near year-end, three main themes appear clear – buyers are grappling with affordability issues and tight inventory; sellers are unsure how to react to the cooling market; and homes priced properly are still selling rather quickly,” Contos continued. “All three underscore the fact that the guidance of a professional agent is even more critical in times like these."
NOTE: The RE/MAX National Housing Report is based on MLS data in approximately 53 metropolitan areas, including all residential property types, and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state.
