Home Sales Report for July 2020

REMAX reports:

“In a significant upward shift, July home sales rose 8.7% over July 2019, halting a streak of year-over-year sales declines triggered by the COVID-19 pandemic. July’s market was blistering hot despite the lowest Months Supply of Inventory (1.7 months) in the 12-year history of the report.

“July set a report record for most home sales in any month among the report’s 53 metro markets. Seven months into 2020, home sales are just 4.8% below 2019, compared to the end of May when the year-to-date total was 8.9% behind last year’s pace. Surprisingly, 2020 monthly sales have exceeded 2019 in four out of seven months thus far.

“‘The sharp gain in home sales in July – which was the best month of home sales in our report’s history – is further evidence of housing’s remarkable recovery amidst the pandemic,” said Adam Contos, RE/MAX Holdings CEO. “Home sales typically peak in May or June, but this year we’re seeing an overlap of the spring and summer markets. And, as strong as July was, sales may have been even higher if inventory hadn’t been so tight.’

“Continued Contos: “Buyers have returned to the market more quickly than sellers, likely spurred on by historically low interest rates and coronavirus-inspired lifestyle changes. Home is the center of life in 2020, and the pandemic has caused people to reconsider their living situations – especially with so many people working from home. So far, buyers have shown they are willing to pay steadily increasing prices, so the months ahead could be very active, especially if more homeowners decide to jump in and sell.’

“Finding a home to buy remains the biggest challenge for many. July inventory dropped 30.1% from July 2019, a report record, and was the ninth consecutive month of double-digit declines year over year. The only three months with lower inventory totals were two winters ago: December 2017 and January and February 2018.

“July’s 1.7 Months of Inventory marked only the second month in report history with below 2 months supply. Even with year-over-year declines factored in, housing inventory is typically at its highest during the summer months.

“July’s Median Sales Price of $285,000 is up 8.6% year-over-year. This is in line with pre-pandemic rises in price after smaller year-over-year price increases of 4.7% and 1.9% in May and June, respectively. Days on Market averaged 44, an increase from 43 the previous July.