There has been a further decline in home sales south of the border which has helped a much-needed rise in inventory.
October’s National Housing Report from RE/MAX shows that home sales were down 4.6% year-over-year, contributing to the first year-over-year rise in inventory in a decade. The sales decline was far lower than the previous two months which posted decreases of 11.6% (Sept) and 1.1% (Aug.).
"The market continues to move toward equilibrium. The modest inventory increase is a much welcome sign for buyers," said RE/MAX CEO Adam Contos. "Although home sales were down year-over-year, it's encouraging to see the magnitude of the decline decrease from the sharp drop we witnessed in September. The trend of easing price increases remains and that's also a positive."
The number of homes for sale in October increased 1% from a year earlier and it was the first month to show a year-over-year increase in inventory since October 2008. Months of supply is now 3.5, compared to 3.3 a year ago.
Sales prices ease
Meanwhile, the median sales price was $236,000, the 31st consecutive month of year-over-year price increases. Although it was the highest October price in the 10-year history of the report, the 4.9% gain was the third-lowest year-over-year growth of 2018.
"The imbalance that has defined this market for so long continues to moderate," said Contos. "However, it will take some time to recalibrate. Rising prices and interest rates and tight inventory levels continue. Buyer and seller expectations still appear to be a bit mismatched suggesting a choppy market remains in place."
Days on Market of 48 was an October record for fewest days and compares to 51 days in October 2017.
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