Inventory Inches Up as New Listings Soften

Seasonal declines in home sales and new listings softened in October, according to a new RE/MAX report, while inventory grew for a seventh consecutive month across the 53 metro areas surveyed.

Home sales dropped 4.6% from September to October, far less than the 13.5% month-over-month drop in October 2022. New listings also declined 5.0%, which was less than half of the 11.1% drop from September to October last year.

While there were 6.9% fewer homes on the market year-over-year, October's inventory grew 4.6% month over month to continue a streak of monthly increases that began in April.

The median sales price of $410,000 did not budge from September and remained 2.8% above October 2022.

"October had some encouraging signs, especially compared to a year ago," said Nick Bailey, President and CEO of RE/MAX, LLC. "Given the interest rate environment, it was good to see the trend of monthly inventory gains continuing, and prices appear to be stabilizing for the moment. It remains a challenging market, but demand for homes is still high, and buyers are gaining a little more leverage as time goes on."

Agent Esther Clarke of RE/MAX Associates in Salt Lake City says it's a balancing act in her market. "New housing developments have sprung up around the city, but regardless of how fast they're built, the inventory can't keep up with demand. Homes that are in good shape and priced right are selling quickly. And I think buyers are starting to recognize the interest rates as the new normal."

Other notable metrics:

• Homes sold in October were on the market for an average of 36 days, one day longer than in September 2023 or in October of last year.
• Homes sold for an average of 99% of the listing price in October, the same as in both September 2023 and October 2022.
• Months' supply of inventory in October was 2.3, larger than September's 2.1 and the same as in October 2022.

Highlights and local market metrics for October include:

New Listings

Of the 53 metro areas surveyed in October 2023, the number of newly listed homes is down 5.0% compared to September 2023 and down 1.3% compared to October 2022. The markets with the biggest decrease in year-over-year new listings percentage were Las Vegas, NV, at -17.6%, Seattle, WA, at -17.5%, and Indianapolis, IN, at -13.0%. The markets with the biggest year-over-year increase in new listings percentage were San Francisco, CA, at +14.2%, Miami, FL, at +13.9, and Tampa, FL, at +13.6%.

Closed Transactions

Of the 53 metro areas surveyed in October 2023, the overall number of home sales is down 4.6% compared to September 2023 and 8.7% compared to October 2022. The markets with the biggest decrease in year-over-year sales percentage were Dover, DE, at -26.9%, and New Orleans, LA, at -17.6%, followed by a tie between Burlington, VT, and Trenton, NJ, at -15.9%. Only two markets had an increase in year-over-year sales percentage: Salt Lake City, UT, at +13.4% and Milwaukee, WI, at +2.7%.

Median Sales Price: Median of 53 metro area prices

In October 2023, the median of all 53 metro area sales prices was $410,000, flat compared to September 2023 and up 2.8% from October 2022. The markets with the biggest year-over-year decrease in median sales price were Honolulu, HI, at -4.1%, and New Orleans, LA, at -3.7%, followed by a tie between Portland, OR, and San Antonio, TX, at -1.9%. The markets with the biggest year-over-year increase in median sales price were Trenton, NJ, at +18.6%, Cleveland, OH, at +12.5%, and Hartford, CT, at +11.5%.

Close-to-List Price Ratio: Average of 53 metro area prices

In October 2023, the average close-to-list price ratio of all 53 metro areas in the report was 99%, flat compared to both September 2023 and October 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 is sold for more than the list price. If it's less than 100%, the home sold for less than the list price. The metro areas with the lowest close-to-list price ratio were Miami, at 95%, followed by a tie between Bozeman, MT, and New Orleans, at 96%. The metro areas with the highest close-to-list price ratios were Hartford, CT, at 104%, and San Francisco, at 103%.

Days on Market: Average of 53 metro areas

The average days on market for homes sold in October 2023 were 36, up one day compared to the average in both September 2023 and October 2022. The metro areas with the lowest days on market were Baltimore, MD at 12, Washington, DC at 13, and Philadelphia, PA at 15. The highest days on market averages were in Coeur d'Alene, ID, at 78, Bozeman, MT, at 77, and Fayetteville, AR, at 73. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

To read the full report, including more data, charts, and methodology, click here.