Your inside source for real estate, development and construction information serving the counties of Mecklenburg, Union & Iredell VOLUME 107 NUMBER 34 ■ MECKTIMES.COM
Part of the
network
TUESDAY, AUGUST 22, 2023
Empowering communities: Ally commits nearly $1 billion to housing initiatives Page 2
Construction firms add 23,000 jobs in June as sector’s unemployment rate sets 24-year low of 3.6 percent Page 3
S. Nicole Virgil joins EXIT realty elite properties in concord Page 4
GOLDMAN: Getting suspicious about being ambitious? Page 5
MARGENAU: History of Social Security Page 6
The economy is booming, but America disagrees Page 7
RE/MAX National Housing report for June shows more gains June posted month-over-month increases in home sales (up 5.4% from May) and inventory (up 7.2%) while year-over-year activity continued to trail the strong results of early 2022. June 2023 home sales were 18.7% below last June’s, contributing to a first-half 24% decline in closings compared to the first half of 2022 across the 52 metro areas surveyed in the RE/MAX National Housing Report. June’s year-over-year decline in active inventory of 10.7% was the first such decrease in the past 13 months. New listings, although down 25% compared to a year ago, were up 0.5% over May. Typically the biggest month for home sales, June produced a median sales price of $425,000 which was the highest since June 2022’s peak price of $426,000. “June’s month-over-month gain in sales is largely seasonal, but it shows the market’s resiliency in the face of low inventory and higher interest rates,” said RE/MAX President and CEO Nick Bailey. “While we probably won’t see a significant jump in sales activity in the short term, demand is strong and houses are selling when they’re priced right. The expertise of an experienced real estate agent continues to be an important part of the equation for buyers and sellers navigating this rebalancing market.” Shelley Bridge of RE/MAX Cherry Creek in Denver, CO agreed. “We are back to a more normal market. Homes that are in good locations, good condition and priced fairly are still selling quickly and with multiple offers. However, properties that don’t meet
these criteria are taking longer to sell and often need to have price reductions in order to attract a buyer.” Other notable metrics: • Months’ Supply of Inventory in June was 1.4, up from May’s 1.3 but below the 1.6 months recorded a year ago. • The average close-to-list price ratio for June was 100%, indicating that homes sold for the asking price on average. This matched May’s ratio and was a decline from the 102% ratio recorded a year ago. • Homes sold in June were on the market for an average of 31 days, which was the same in May but 9 days longer than June of last year. Highlights and local market metrics for June include: New Listings Of the 52 metro areas surveyed in June 2023, the number of newly listed homes was up 0.5% compared to May 2023, and down 25.0% compared to June 2022. The markets with the biggest decrease in year-over-year new listings percentage were Phoenix, AZ at -54.4%, Las Vegas, NV at -43.3% and Seattle, WA at -35.9%. No markets had an increase in year-over-year new listings percentage. Closed Transactions Of the 52 metro areas surveyed in June 2023, the overall number of home sales was up 5.4% compared to May 2023, and
down 18.7% compared to June 2022. The markets with the biggest decrease in yearover-year sales percentage were Seattle, WA at -27.8%, Portland, OR at -27.7%, and Anchorage, AK at -27.5%. Only one metro area had a year-over-year sales percentage increase in June, Coeur d’Alene, ID at +0.9%. Median Sales Price – Median of 52 metro area prices In June 2023, the median of all 52 metro area sales prices was $425,000, up 2.4% compared to May 2023, and down 0.3% from June 2022. The markets with the biggest year-over-year decrease in median sales price were Coeur d’Alene, ID at -8.0%, Las Vegas, NV at -7.9%, and Phoenix, AZ at -6.5%. The markets with the biggest yearover-year increase in median sales price were Trenton, NJ at +11.5%, Omaha, NE at +10.2%, and Anchorage, AK at +7.8%. Close-to-List Price Ratio – Average of 52 metro area prices In June 2023, the average close-to-list price ratio of all 52 metro areas in the report was 100%, flat compared to May 2023, and down from 102% compared to June 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 closed for more than the list price. If it’s less than 100%,
PLEASE SEE RE/MAX ON PAGE 4
“The Fed’s policy tightening in an effort to quell inflation is probably close to finished, although their guidance is really more current than forward, and incoming data will be determinant.” Doug Duncan, Fannie Mae.
Story, page 4