Many analysts have predicted that 2016 will be the best year for home sales in a decade, since before the crisis.
September’s sales helped to prove their case. The RE/MAX National Housing Report for the month indicated that home sales were at their highest for any September in the report’s nine-year history despite a typical seasonal dropoff from August to September, which was a sign that demand for housing is as strong as ever heading into the fall.
Home sales fell over-the-month by 11.7 percent in September, which is right in line with the previous eight years of the report, but still rose by 2 percent over-the-year.
“The market usually sees fewer home sales in September, as buyers make a seasonal transition from summer to fall,” said Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder. “Even so, sales were the highest of any September since we launched our Housing Report in 2008. Also, price increases continue to be in the moderate 5-percent year-over-year range. Overall, this is a market that most everyone can be satisfied with.”
In September 34 out of 52 markets surveyed experienced a year-over-year increase in home sales, with double-digit increases occurring in six of those markets: Trenton, New Jersey (18 percent), Augusta, Maine (14 percent), Des Moines, Iowa (13.6 percent), Raleigh/Durham, North Carolina (11.6 percent), Boise, Idaho (11.3 percent), and Seattle, Washington (10.6 percent).
Home price appreciation was strong in September, according to RE/MAX. The median sales price ($219,780) represented a year-over-year increase of 5.1 percent, with Birmingham (17 percent) and Miami (15.2 percent) seeing the largest increases. Not one of the 52 metros surveyed experienced an over-the-year decline in median sales price in September.
Housing inventory, which has been on ongoing issue in the housing market for the last two years, plummeted over-the-year—falling by an average of 15 percent across the 52 metro areas, according to RE/MAX. Inventory declined by 2.7 percent from August to September.