Home buyers snapped up listings at fastest pace ever in July

Opposing forces tugged at July’s housing market, yet time to sell set a record in the process.

Average time on market fell to 23 days, down from 24 in June and 44 one year earlier, according to Remax’s National Housing Report. It marks the fastest rate from listing to sale since Remax started recording the data in early 2009. The average time on market fell below 40 days only nine times in the report’s history and those all occurred between August 2020 and July, including every month since March.

Broken down by the 53 largest metro areas, the fewest days on market came in Cincinnati at nine, Nashville, Tenn., at 10 and Omaha, Neb., at 11. Miami had the longest time with a 76-day average, followed by 75 in Des Moines, Iowa, and 63 in New York.

Despite the break-neck pace, total sales dropped 8.4% monthly and 3.1% annually. The largest declines in closed transactions came in some of the hottest markets projected for 2022. Sales in Salt Lake City decreased the most at 22.5% year-over-year, while Dallas fell 20.8% and Boise, Idaho, by 20.3%.

"Some buyers have stepped away in light of high prices, seller expectations, multiple offers and intense competition, but new listings are still selling quickly,” Remax President Nick Bailey said in the report. “The market should continue to run hot, especially if interest rates remain low, prices stabilize a bit, and more sellers jump in to take advantage."

While competition remained very stiff, housing inventory grew in the short-term for the second consecutive month. Supply rose 4% from June, but was 29.7% lower from the year prior. A 6-month supply defines market equilibrium; however July had 1.3 months.

Indianapolis experienced the steepest annual drop in inventory at 86.6%. Albuquerque, N.M., and Hartford, Conn., trailed with decreases of 70.6% and 68%, respectively. None of the 53 metro areas had inventory near the six-month equilibrium.

The median sales price came down 1.2% to $331,000 from June’s record high of $336,000. However, it rose above the year-ago median of $285,000 by 16.2%. The median home price grew annually in every market analyzed, with jumps of 35.7% in Boise, 28.2% in Phoenix and 24% in Augusta, Maine, leading the way.