RE/MAX NATIONAL HOUSING REPORT FOR JANUARY 2024

Rhea-AI Summary

The press release highlights a significant surge in new listings of homes in January, with a 66.3% increase from December and a 21.5% rise compared to January 2023. This surge was accompanied by year-over-year growth in closed sales and inventory, indicating a positive outlook for the upcoming spring home sales season. The median sales price also saw a 5.2% increase from January 2023, reaching $405,000.

Insights

Market Research Analyst

The significant increase in new home listings, as reported, suggests a potential shift in the housing market dynamics. The 66.3% month-to-month rise and 21.5% year-over-year increase in January are indicative of a market that is becoming more favorable to buyers. Historically, a surge in inventory can lead to more competitive pricing, which may benefit consumers but can put pressure on sellers and homebuilders to adjust their strategies.

From a market research perspective, the increase in closed sales by 2.5% compared to the previous year, coupled with a median sales price increase of 5.2%, reflects a robust demand. However, the inventory uptick ending a seven-month streak of declines, while modest, could signal a more balanced market ahead. This shift might alter the trajectory of home prices, potentially slowing the rapid price appreciation seen in recent years.

Economist

The data from the housing market can have broader economic implications. The increase in home listings and sales can be a precursor to enhanced economic activity, as housing markets often have a multiplier effect on the economy. The uptick in inventory and sales activity could stimulate related sectors, such as construction, home improvement and retail, potentially leading to increased employment and consumer spending.

However, the report also mentions a post-holiday drop in sales, which is common, yet the 19.1% decrease from December suggests seasonality still plays a significant role. The stability of the median sales price from December to January suggests that while there is growth year-over-year, the market may be reaching a plateau, which could indicate a cooling period after the heated market conditions experienced in previous years.

Real Estate Analyst

From a real estate analysis standpoint, the local market nuances, such as the relocation boom in Las Vegas, are critical in understanding the overall picture. The desirability of certain areas, driven by factors like cost of living and employment opportunities, can create micro-markets with different dynamics than the national averages. The decrease in days on market in such areas indicates a faster turnover rate, which is advantageous for sellers but can create a sense of urgency for buyers.

For investors and stakeholders, the long-term implications of these trends should be monitored. A sustained increase in listings and sales could point to a healthier market, but if interest rates fluctuate, it could impact buyer affordability and, consequently, the demand for homes. Stakeholders should also consider the potential for regional disparities, as some markets may experience different levels of activity and price changes.

New Listings Soar Higher as Spring Ramp-Up Approaches

DENVER, Feb. 15, 2024 /PRNewswire/ -- In what could be a good sign for buyers, the number of newly listed homes in January was a whopping 66.3% higher than in December and 21.5% higher than January 2023 across the 50 metro areas surveyed.

The 21.5% year-over-year increase in new listings reversed a multi-year January trend, as new listings dropped 5.1% from January 2022 to January 2023 and 8.1% from January 2021 to January 2022. The dramatic 66.3% month-to-month increase in new listings was also significantly higher than the past two December-to-January jumps – 39.8% to start 2023 and 24.7% to begin 2022.

The surge in new listings was combined with year-over-year increases in closed sales and inventory, illustrating that January's housing stats could bode well for the typical spring uptick in home sales this year.

January home sales were 2.5% higher than January 2023, although they were down 19.1% from December, a slightly smaller post-holiday drop than the past two years. January inventory increased 1.7% over January 2023, ending a seven-month streak of year-over-year declines. The median sales price of $405,000 was 5.2% (or $20,000) higher than January 2023 and unchanged from December.

"It was encouraging to see the surge in new listings, as January stats can be a sign of things to come," said Nick Bailey, President and CEO of RE/MAX, LLC. "Potential buyers and sellers considering a move this year should prepare by securing a qualified agent who can help them understand the local market and help them through the process. If new listings continue to emerge and interest rates drop a bit over time, 2024 could be a year of great opportunity for buyers and sellers."

Lori Galarza, Broker/Owner of RE/MAX Central in Las Vegas, Nevada, said buyers and sellers in her market had to come ready in January. "Las Vegas is very desirable right now, thanks to a relocation boom from Californians who are looking for a lower cost of living. That desirability drove January sales and pushed days on market down. I expect the trend to continue as we are starting to see more activity with buyers who are feeling more confident about purchasing this year."

Other metrics of note:

• Homes took an average of 45 days to sell – one day less than December and three days less than January 2023.
• January 2024 sales averaged 98% of the listing price, the same as in December and up from 97% one year ago.
• January's Months' supply of inventory was 2.1, compared to 2.4 in December and 2.0 one year ago.

Highlights and local market results for January include:

New Listings
Of the 50 metro areas surveyed in January 2024, the number of newly listed homes was up 66.3% compared to December 2023 and up 21.5% compared to January 2023. The markets with the biggest year-over-year increase in new listings percentage were Honolulu, HI at +73.4%, Charlotte, NC at +72.8%, followed by a tie between Bozeman, MT and Milwaukee, WI at +66.4%. The markets with the biggest decrease in year-over-year new listings percentage were Anchorage, AK at -18.9%, Wichita, KS at -8.2%, and Baltimore, MD -6.9%.

New Listings: 5 Markets with the Biggest YoY Increase
Market	Jan 2024 New Listings	Jan 2023 New Listings	Year-over-Year % Change
Honolulu, HI	1,295	747	+73.4 %
Charlotte, NC	4,989	2,887	+72.8 %
Bozeman, MT	248	149	+66.4 %
Milwaukee, WI	1,559	937	+66.4 %
Burlington, VT	146	91	+60.4 %

Closed Transactions 
Of the 50 metro areas surveyed in January 2024, the overall number of home sales was down 19.1% compared to December 2023 and up 2.5% compared to January 2023. The markets with the biggest decrease in year-over-year sales percentage were Wichita, KS at -15.7%, Dover, DE at -13.3%, and New Orleans, LA at -11.7%. The markets with the biggest increase in year-over-year sales percentage were Salt Lake City, UT at +20.0%, Dallas, TX at +14.2%, and Las Vegas, NV at +12.4%.

Closed Transactions: 5 Markets with the Biggest YoY Increase
Market	Jan 2024 Transactions	Jan 2023 Transactions	Year-over-Year % Change
Salt Lake City, UT	792	660	+20.0 %
Dallas, TX	5,208	4,560	+14.2 %
Las Vegas, NV	1,956	1,740	+12.4 %
Des Moines, IA	545	487	+11.9 %
Bozeman, MT	99	89	+11.2 %

Median Sales Price – Median of 50 metro area prices
In January 2024, the median of all 50 metro area sales prices was $405,000, flat compared to December 2023 and up 5.2% from January 2023. The markets with the biggest year-over-year increase in median sales price were Trenton, NJ at +16.7%, Bozeman, MT at +16.6%, and Baltimore, MD at +13.8%. The markets with the biggest year-over-year decrease in median sales price were Coeur d'Alene, ID at -10.6%, Raleigh, NC at -3.3%, and Anchorage, AK at -2.7%.

Median Sales Price: 5 Markets with the Biggest YoY Increase
Market	Jan 2024 Median Sales Price	Jan 2023 Median Sales Price	Year-over-Year % Change
Trenton, NJ	$385,000	$330,000	+16.7 %
Bozeman, MT	$729,000	$625,000	+16.6 %
Baltimore, MD	$370,000	$325,000	+13.8 %
Manchester, NH	$430,000	$380,000	+13.2 %
Wichita, KS	$215,500	$191,250	+12.7 %

Close-to-List Price Ratio – Average of 50 metro area prices
In January 2024, the average close-to-list price ratio of all 50 metro areas in the report was 98%, flat compared to December 2023 and up compared to 97% in January 2023. 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%, the home sold for less than the list price. The metro areas with the lowest close-to-list price ratio were Miami, FL at 93%, Bozeman, MT at 94%, and New Orleans, LA at 95%. The metro areas with the highest close-to-list price ratios were Hartford, CT at 102% and Trenton, NJ at 101%.

Close-to-List Price Ratio: 5 Markets with the Biggest YoY Increase
Market	Jan 2024 Close-to-List Price Ratio	Jan 2023 Close-to-List Price Ratio	Year-over-Year Difference*
Trenton, NJ	100.7 %	98.5 %	+2.3 pp
Seattle, WA	99.1 %	97.5 %	+1.5 pp
San Francisco, CA	99.7 %	98.2 %	+1.5 pp
Providence, RI	99.8 %	98.3 %	+1.5 pp
New York, NY	99.4 %	98.1 %	+1.3 pp

*Difference displayed as change in percentage points

Days on Market – Average of 50 metro areas
The average days on market for homes sold in January 2024 was 45, down one day compared to the average in December 2023 and down three days compared to January 2023. The metro areas with the lowest days on market were a tie between Baltimore, MD and Milwaukee, WI at 16, followed by another tie between Trenton, NJ and Washington, DC at 18. The highest days on market averages were in Fayetteville, AR at 81, Coeur d'Alene, ID at 79, and Des Moines, IA at 78. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

Days on Market: 5 Markets with the Biggest YoY Decrease
Market	Jan 2024 Days on Market	Jan 2023 Days on Market	Year-over-Year % Change
Milwaukee, WI	16	32	-51.1 %
Trenton, NJ	18	26	-32.4 %
Charlotte, NC	36	49	-25.8 %
Las Vegas, NV	43	57	-24.2 %
Los Angeles, CA	37	49	-23.8 %

Months' Supply of Inventory – Average of 50 metro areas
The number of homes for sale in January 2024 was down 2.4% from December 2023 and up 1.7% from January 2023. Based on the rate of home sales in January 2024, the months' supply of inventory was 2.1, down from 2.4 in December 2023, and up from 2.0 in January 2023. In January 2024, the markets with the lowest months' supply of inventory were Seattle, WA at 0.7, Manchester, NH at 0.9, followed by a three-way tie between Albuquerque, NM, Trenton, NJ, and Washington, DC at 1.0. The markets with the highest months' supply of inventory were Miami, FL at 5.0, New Orleans, LA at 4.4, and Bozeman, MT at 3.9.

Months' Supply of Inventory: 5 Markets with the Biggest YoY Increase
Market	Jan 2024 Months' Supply of Inventory	Jan 2023 Months' Supply of Inventory	Year-over-Year % Change
Boston, MA	3.5	1.3	+163.3 %
Anchorage, AK	2.2	1.3	+74.5 %
Omaha, NE	2.2	1.4	+48.9 %
Miami, FL	5.0	3.6	+40.8 %
New Orleans, LA	4.4	3.1	+39.9 %

About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in over 9,000 offices and a presence in more than 110 countries and territories. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children's Miracle Network Hospitals^® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.com. For the latest news about RE/MAX, please visit news.remax.com.

Report Details
The RE/MAX National Housing Report is distributed monthly on or about the 15th. The Report is based on MLS data for the stated month in 50 metropolitan areas, includes single-family residential property types, and is not annualized. For maximum representation, most of the largest metro areas in the country are represented, and an attempt is made to include at least one metro area in almost every state. Metro areas are defined by the Core Based Statistical Areas (CBSAs) established by the U.S. Office of Management and Budget.

Definitions
Closed Transactions are the total number of closed residential transactions during the given month. Months Supply of Inventory is the total number of residential properties listed for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pending listings) during the month. Where "pending" data is unavailable, an inferred pending status is calculated using closed transactions. Days on Market is the average number of days that pass from the time a property is listed until the property goes under contract. Median Sales Price for a metro area is the median sales price for closed transactions in that metro area. The nationwide Median Sales Price is calculated at the nationwide aggregate level using all sale prices from the included metro areas. The Close-to-List Price Ratio is the average value of the sales price divided by the list price for each closed transaction.

MLS data is provided by Seventy3, LLC, a RE/MAX Holdings company. While MLS data is believed to be reliable, it cannot be guaranteed. MLS data is constantly being updated, making any analysis a snapshot at a particular time. Every month, the previous period's data is updated to ensure accuracy over time. Raw data remains the intellectual property of each local MLS organization.

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SOURCE RE/MAX, LLC

FAQ

What was the percentage increase in new listings in January compared to December?

The number of newly listed homes in January saw a significant 66.3% increase from December.

How did the new listings in January 2024 compare to January 2023?

The new listings in January 2024 were 21.5% higher than January 2023.

What was the year-over-year change in home sales in January compared to January 2023?

January home sales were 2.5% higher than in January 2023.

What was the median sales price in January 2024 compared to January 2023?

The median sales price in January 2024 was $405,000, a 5.2% increase from January 2023.

Who mentioned that 2024 could be a year of great opportunity for buyers and sellers?

Nick Bailey, President and CEO of RE/MAX, LLC, mentioned that 2024 could be a year of great opportunity for buyers and sellers.

Which market was highlighted as very desirable in the press release?

Las Vegas, Nevada, was highlighted as a very desirable market in the press release.