RE/MAX reports [1] that the number of homes on the market grew month-over-month for a sixth consecutive month in September 2023, as sales declined 13.8% from August and 17% from a year ago. The 9.3% increase in inventory was the largest month-over-month increase in 14 months. Even so, inventory is 8.6% below September 2022 levels.
Despite the growth in inventory over August 2023, new listings were down 1.8% from August and 7.8% year over year.
With three months left in 2023, the Median Sales Price of $415,000 posted a seasonal decline of 2.4% month-over-month–last September's sequential drop was 1.2%–but remained 2.5% higher than last September's $405,000.
"We're seeing some seasonal trends in play," said RE/MAX President and CEO Nick Bailey [2]. "The dip in sales followed typical seasonality, and the increase in inventory on the market was much needed to balance previous low inventory. And that's good news for buyers who choose to enter the market this fall."
Other notable metrics reported by RE/MAX in September include:
- Homes sold for an average of 99% of the listing price in September, the same as in both August and in September 2022.
- Months' supply of inventory in September was 2.1, larger than both August's 1.7 and September 2022's 2.0.
- Homes sold in September were on the market an average of 35 days, one day longer than in August or in September of last year.
Meghan Carroll, a Real Estate Agent with RE/MAX Elite in Monmouth Beach, New Jersey [3], says it can be a tough market for some buyers.
"Higher interest rates have deterred some buyers but not all, which has surprised me somewhat, but those buyers are looking at the long-term picture,” noted Carroll. “Inventory levels are also still low, which is keeping the prices higher and making bidding wars commonplace here. So, it can be tough out there for some buyers–especially young, first-time buyers."
Highlights for September include:
- Median sales price (median of 50 metro area prices): In September 2023, the median of all 50 metro area sales prices was $415,000, down 2.4% compared to August 2023, and up 2.5% from September 2022. The markets with the biggest year-over-year increase in median sales price were Manchester, New Hampshire at +11.7%; Wichita, Kansas at +11.6%; and Hartford, Connecticut at +9.8%. The markets with the biggest year-over-year decrease in median sales price were found in Houston at -2.5%; followed by a tie between Las Vegas and Phoenix, both at -1.9%.
- New listings: Of the 50 metro areas surveyed in September 2023, the number of newly listed homes is down 1.8% compared to August 2023, and down 7.8% compared to September 2022. The markets with the biggest decrease in year-over-year new listings percentage were Las Vegas at -23.1%; Detroit at -20.8%; and San Diego at -20.3%. The markets with the biggest year-over-year increase in new listings percentage were San Francisco at +16.2%; Tampa, Florida at +15.8%; and San Antonio, Texas at +14.9%.
- Closed transactions (the total number of closed residential transactions during the given month): Of the 50 metro areas surveyed in September 2023, the overall number of home sales is down 13.8% compared to August 2023, and down 17% compared to September 2022. The markets with the biggest decrease in year-over-year sales percentage were Trenton, New Jersey at -29.9%; Manchester, New Hampshire at -29.3%; and Dover, Delaware at -28.6%. Only one market had an increase in year-over-year sales percentage, Tampa, Florida at +11.7%.
- Close-to-list price ratio (average of 50 metro area prices where the average value of the sales price divided by the list price for each closed transaction): In September 2023, the average close-to-list price ratio of all 50 metro areas in the report was 99%, flat compared to both August 2023 and September 2022. The close-to-list price ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it's less than 100%, the home sold for less than the list price. The highest close-to-list price ratios were a tie between Hartford, Connecticut and Trenton, New Jersey at 104%, followed by San Francisco at 103%. The metro areas with the lowest close-to-list price ratio were Miami, Florida at 95%; and Coeur d'Alene, Idaho at 96%.
- Days on the market (average of 50 metro areas): The average days on market for homes sold in September 2023 was 35, up one day compared to the average in both August 2023 and September 2022. The metro areas with the lowest days on market were Baltimore at 12, followed by a tie between Dover, Delaware; and Trenton, New Jersey at 13. The highest days on market averages were reported in Fayetteville, Arkansas at 71; Coeur d'Alene, Idaho at 69; and San Antonio, Texas at 64. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
- Months' supply of inventory (average of 50 metro areas): The number of homes for sale in September 2023 was up 9.3% from August 2023, and down 8.6% from September 2022. Based on the rate of home sales in September 2023, the months' supply of inventory was 2.1, up compared 1.7 in August 2023, and increased compared to 2.0 in September 2022. In September 2023, the markets with the lowest months' supply of inventory were a tie between Hartford, Connecticut and Trenton, New Jersey at 0.9. The markets with the highest months' supply of inventory were found in Bozeman, Montana at 5.1; San Antonio, Texas at 4.6; and Houston, Texas at 3.9.
