In the wake of the homebuyer tax credit, home sales and prices are holding their own, due largely to record low interest rates and the most affordable prices in years, according to the RE/MAX National Housing Report’s June survey of 54 metropolitan markets.
RE/MAX found that that closed transactions in June were 5.6 percent higher and prices 3.5 percent higher than they were in June 2009.
Sales in June rose 7.2 percent rise from May and were 5.6 percent over June 2009. Sales were especially strong in the Northeast. Boston and Hartford saw 23 percent more sales than last year. Providence was up 21 percent and Philadelphia was higher by 27 percent. On a year over year basis, an equal number of metro areas had increases and decreases in closed transactions.
In the survey’s 54 metro areas, median prices rose 3.5 percent the year-over-year. The weighted average of all median sales prices for June was $211,530. California experienced the most dramatic increase in prices. Median prices in San Francisco rose almost 18 percent higher than June 2009 levels. Los Angeles prices were 10 percent higher and San Diego prices were 9 percent above June 2009.
“There’s no question, the tax credit has had a significant impact on this market,” said RE/MAX CEO Margaret Kelly. “No one can predict the future, and we may still see a slight pull back, but for right now it appears that housing is holding its own, hopefully on the road to a sustainable recovery.”
RE/MAX found that inventories of homes on the market in June rose slightly from May, up only 1.2 percent, but was down 5.8 percent from June 2009. In the survey’s 54 cities, the average months’ supply was 8.5 months, which remains unchanged from May. A six month supply is considered a market balanced equally between buyers and sellers.