October’s home sales recorded a 3.9 percent increase from the level set one year earlier, according to new data from RE/MAX. October became the fourth month of the past six to post a year-over-year increase in sales, with double-digit increases recorded in Los Angeles (24.4 percent), Charlotte (19.1 percent) and Burlington, Vt. (16.1 percent).
The median sales price last month of $254,800 set a record for the month of October. Last month’s price was up 8.4 percent from one year earlier. Three metro areas increased the median sale price by double-digit percentages from the previous year: Trenton, N.J. (up 20.9 percent). Albuquerque, N.M. (15.8 percent) and Boise, Idaho (10.9 percent). However, two metro areas saw a year-over-year decrease: San Francisco was down by 2.6 percent and Burlington recorded a 0.8 percent dip.
The average number of days on the market for homes sold in October was 49, up three days from the average in September and up one day from the average in October 2018. The number of homes for sale in October was down 5.5 percent from the previous month and down nine percent from one year earlier. The supply of inventory decreased to 3.1 months from 3.4 months in September and four months in October 2018. Of the 54 metro areas surveyed by RE/MAX, only Miami has a supply of more than six months, with a 6.9-month total.
"October continued a recent win streak for home sales, and the market is positioned much better than it was a year ago," said RE/MAX Holdings Chief Executive Officer Adam Contos. "Demand is strong, due in part to low interest rates, but buyers have limited options because inventory remains such a challenge. As a result, prices keep rising. Fortunately, key forecasts suggest an increase in new-homes moving onto the market next year, which would help address the inventory situation and potentially slow the steady price gains we've seen for so long."