The residential real estate market remained strong nationwide last month as record-breaking sales continued.
Appetite remained high despite home sales dropping 3.5% from July, while the median home sale price slipped 1.2% to $335,000, according to RE/MAX’s latest monthly housing report. This may indicate that 2021’s busiest homebuying and selling months have most likely passed, which is typical for this time of year.
Out of the 51 metro areas examined in the report from MLS data, Phoenix was one of 36 cities where the median home sales price actually increased by a double-digit percentage year-over-year by +24.9%. That means the median home sale price in Phoenix is now $405,950, up from $325,000 compared to August 2020.
“The slight seasonal decline in home sales from July to August was countered by this being the second-highest August sales total in the 13-year history of our report. So, although we appear to be past the blistering summer peak, the market is still very active,” says Nick Bailey, President, RE/MAX, LLC, in the report.
Bailey continues: “In fact, the drop in home prices might signal to potential sellers that it’s time to get off the fence in case they fall further, which in turn could draw more buyers back into the mix. In any case, it seems likely that the combination of super-quick sales and a severe lack of inventory will be with us for the foreseeable future.”
With year-over-year comparisons skewed by the pandemic, July-to-August averages for 2015-2019 illustrate what’s typical in late summer:
- The month-over-month decline of 1.2% in August’s Median Sales Price compares with the 2015-2019 average July-to-August drop of 1.0%. Year over year, the Median Sales Price is up 13.2%.
- The 6.2% month-over-month drop in active inventory was nearly double the 2015-2019 average July-to-August decline of 3.3%. Inventory is down 26.7% year-over-year.
- Home sales dropped 3.5% from July, compared to the 2015-2019 average decline of 2.1%. However, August home sales were one of the largest totals of any month in the 13-year history of the report and the second-largest for the month and year over year, sales were up 0.6%.
August’s average Days on Market of 24 was one day more than July and reflected sales that were 18 days faster, on average, than in August 2020. The Months Supply of Inventory in August of 1.3 declined from July’s 1.5 and was significantly less than August 2020’s 1.9 Months Supply.
Read the full report here.