Not only are inventories down 27 percent from last year, prices are up 2.5 percent in May and 3.7 percent from June 2011. Sales have risen every month for the last year in RE/MAX’s national housing report. In fact, for five straight months, sales and prices have both increased on a monthly and annual basis.
Of the 53 metro areas included in the RE/MAX survey, 31 report increases in both sales and prices. It appears that the recovery is broad based, occurring in all geographic regions. Increased consumer confidence, historically low mortgage rates and attractive pricing are some of the factors that are drawing buyers and sellers back into the real estate market. Available homes for sale dropped 5.0 from May and 27.4 percent from June 2011. This declining inventory has created a seller’s market in many areas with multiple bids and offers occurring frequently.
RE/MAX’s Median Sales Price of homes sold in June was $170,067. Of the 53 metro areas surveyed for the June RE/MAX National Housing Report, a near record 44 experienced price increases over the last year, with 6 metro areas experiencing double digit gains.
Closed transactions for June increased 2.1 percent from May and 5.0 percent from June last year. These figures make June the twelfth month that transactions have been higher than the same month in the previous year and the fifth time transactions have increased over the previous month. Favorable market conditions are attracting both sellers and buyers, as well as investors. Of the 53 metro areas surveyed, 40 saw higher sales than one year ago, with many New England markets leading the way:
The inventory of homes for sale fell 5.0% from May and 27.4 percent from inventory levels seen in June 2011. Month-to-month inventories have now fallen for 24 consecutive months. A diminishing inventory is helping home prices rise. Given the current rate of sales, the average Months Supply is now 5.0, about two months lower than the 6.9 average for June last year.