Falling Phoenix Home Sales in May: Is the Market Cooling?

The typical surge in home sales in May did not happen last month, as sales fell 0.2% from April and home prices were unusually stable in the 53 metropolitan areas in the report. , according to the report. RE / MAX national report on housing, published this morning. Home sales in Phoenix fell 5.8% month-over-month in May, with inventories also dropping 13.7% over the same period.

Also defying seasonal trends, a 7.1% drop in the number of listed homes at a time of year when active inventories are building normally for peak summer sales months. But two other metrics confirm the frenzied seller’s market continues: Months of supply have fallen to 1.1 months, and homes have changed hands in just 28 days. Both are records in the 13-year history of the report.

READ ALSO: 5 Arizona housing market forecasts for 2021

“The first small step towards a more balanced market may have appeared in May, as house prices finally stabilized after a long series of sustained increases. At the same time, the cooling of sales defied typical trends from April to May and reporting records were set for low stocks and quick turnaround times, ”said Nick bailey, President, RE / MAX, LLC.

With year-over-year comparisons heavily skewed by the pandemic, the April-May averages for 2015-2019 show what is typical:

• While May 2021 home sales were down 0.2% month over month, with 13.9% being the 2015-2019 average gain from April to May. Year over year, sales increased 53.4%.

• Median May selling price of $ 320,000 was the same as in April, compared to the typical April-May increase of 3.2%. Year over year, May price is 17.0% higher than May 2020 $ 273,498.

• Instead of the 7.1% drop from April to May, inventories generally rise 1.8%. Year over year, inventories were down 43.0%.

Bailey continued, “May had a little something for everyone – with buyers finally getting a break on pricing, sellers benefiting from a lack of competitive inventory, and both parties were served by listing periods at the. faster contract. The market is still mostly leaning towards sellers, but we may see the first signs of a return to more equilibrium after the hottest selling period in years. Ultimately that would be good for both buyers and sellers.

The average number of days on the market in May, from listing to closing of 28, reduced by four days in April and represented a faster sell of 18 days by May 2020.

The 1.1 month supply in May compares to 1.3 in April and 2.9 in May 2020.

Here’s a look at home sales in Phoenix

At the top of the Phoenix home sales data, here are the highlights and top local markets for various metrics for May include:

Closed Transactions

Of the 53 metropolitan areas surveyed in May 2021, the overall average number of home sales is down 0.2% compared to April 2021, and up 53.4% ​​from May 2020. Leading the percentage increase in year-over-year sales were Detroit, Michigan at + 136.6%, San Francisco, California at + 135.7%, and Miami, Florida at + 131.8%.

Median selling price – Median of 53 median prices in the metro

In May 2021, the median of the 53 metropolitan median selling prices was $ 320,000, dish April 2021 and up 17.0% compared to May 2020. No metropolitan area has experienced a year-over-year decline in the median selling price. Fifty metropolitan areas grew year over year by double-digit percentages, led by Boise, ID at + 40.7%, Augusta, me at + 37.8%, and Phoenix, Arizona at + 32.9%.

Days on Market – Average of 53 metropolitan areas

The average number of days on the market for homes sold in May 2021 was 28, down four days from the average of April 2021, and down 18 days from the average in May 2020. The metropolitan areas with the lowest days in market included a four-way link between Boise, ID, Seattle, WA, Omaha, NE, and Nashville, Tennessee to 12. The highest day-in-market averages were in Miami, Florida at 85, Des Moines, IA at 83, and New York, New York State to 79. Days on the market are the number of days between when a home is first listed in an MLS and the signing of a contract of sale.

Months of supply in stock – Average of 53 metropolitan areas

The number of houses for sale in May 2021 was down 7.1% from April 2021 and down 43.0% compared to May 2020. Based on the sale rate of homes in May 2021, the number of months of supply in stock decreased to 1.1 from 1.3 in April 2021, and decreased from 2.9 in May 2020. A six month supply indicates a balanced market equally between buyers and sellers. In May 2021, of the 53 metropolitan areas studied, no metropolitan area reported a supply of six months or more, which is generally considered a buyer’s market. Markets with the lowest months of inventory supply were tied at four between Albuquerque, New Mexico, Raleigh-Durham, North Carolina, Denver, CO, and Seattle, WA to 0.4.

Comments are closed.