Re/max re­port shows up­ward trend in home prices, sales and in­ven­tory

North Penn Life - - REAL ESTATE -

Low in­ven­tory has char­ac­ter­ized the hous­ing re­cov­ery for sev­eral months, but may EH fiNDOOY VKRWLNJ VLJNV RI im­prove­ment, ac­cord­ing to the April Re/Max National Hous­ing Re­port.

The num­ber of homes for sale in April inched 1.6 per­cent higher than the numEHU VHHN LN 0DUFK, WKH fiUVW monthly in­crease since June 2010.

At the same time, closed trans­ac­tions and me­dian prices both re­mained 10 per­cent higher than last year’s lev­els. The Re/Max National Hous­ing Re­port, a sur­vey of MLS data from 52 U.S. metropoli­tan ar­eas, con­tained signs of a strong hous­ing re­cov­ery in re­gions across the coun­try.

Low in­ven­to­ries con­trib­ute to a limited growth in sales, pre­vent­ing some buy­ers from clos­ing on the home of their choice.

But if in­ven­to­ries can rise to a more bal­anced level, the re­cov­ery should strengthen and ex­pe­ri­ence even more home sales.

The months’ sup­ply of homes for sale at April’s pace of sales was just 3.6 months, the low­est sup­ply since the Re/Max National Hous­ing Re­port be­gan in Au­gust 2008.

A bal­anced mar­ket is achieved with a months’ sup­ply of 6.

“April was ex­actly what we needed at this time in the hous­ing re­cov­ery. Home sales and prices con­tin­ued to rise, while we started to see im­prove­ment in the num­ber of homes for sale,” said Mar­garet helly, CEl of Re/ Max LLC. “It may take a few months, but as prices rise and more home­own­ers gain pos­i­tive eq­uity, we should see an in­crease in the in­ven­tory of homes for sale, re­sult­ing in a much bet­ter se­lec­tion for po­ten­tial home­buy­ers.”

The April Re/Max Hous­ing Re­port showed an 8.1 per­cent in­crease in closed trans­ac­tions over March and a 10.5per­cent in­crease over sales in April 2012. This makes April the 22nd month in a row ex­pe­ri­enc­ing higher sales than the same month in the pre­vi­ous year. Real es­tate agents across the coun­try are UHSRUWLNJ LNFUHDVHG WUDI­fiF and ex­pect the up­com­ing sum­mer sell­ing sea­son to be even stronger than last sum­mer.

lf the 52 metro ar­eas sur­veyed in April, 41 re­ported higher sales than April 2012, and 25 re­ported dou­ble-digit gains, in­clud­ing: Honolulu, Hawaii +53.2 per­cent, Burlington, Vt. +40.3 per­cent, Al­bu­querque, N.M. +40.2 per­cent, Char­lotte, N.C. +39.4 per­cent, Raleigh & Durham, N.C. +38.1 per­cent and Chicago, Ill. +33.4 per­cent. Me­dian price The me­dian price for all homes sold in April was $1TT,200, which was 4.T per­cent higher than the me­dian price in March and 10.T per­cent higher than the price in April 2012.

For 15 months in a row, the me­dian price has been higher than in the same month of the pre­vi­ous year. Un­til the in­ven­tory bal­ances, home prices should re­main higher than those in the pre­vi­ous year. lf the 52 metro ar­eas sur­veyed in April, four saw their me­dian price drop be­low last year’s price: Los An­ge­les, Calif. -9.1per­cent, Al­bu­querque, N.M. -6.3 per­cent, Cleve­land, lhio -1.8 per­cent and Prov­i­dence, R..I -0.3 per­cent. How­ever, a to­tal of 48 met­ros saw yearover-year price in­creases, with 21 re­port­ing dou­bledigit in­creases, in­clud­ing: Detroit, Mich. +44.1 per­cent, San Fran­cisco, Calif. +42.2 per­cent, At­lanta, Ga. +38.9 per­cent, Las Vegas, Nev. +31.6 per­cent, lr­lando, Fla. +24.6 per­cent and Phoenix, Ariz. +23.8 per­cent. Days on mar­ket The aver­age days on mar­ket for all homes sold in April was only TT. This is eight days lower than the 85 day aver­age in March, and D VLJNL­fiFDNW 19 GDYV EHORW the 96 day aver­age in April 2012. The TT day April aver­age is the 11th time in the past year that the days on mar­ket aver­age has been be­low 90.

A re­duced days on mar­ket is the di­rect re­sult of a mar­ket with low in­ven­tory and high de­mand. Days on mar­ket is the num­ber of days EHWWHHN WKHN D KRPH LV fiUVW listed in an MLS and when a sales con­tract is signed.

FRU WKH fiUVW WLPH VLNFH -UNH 2010, the num­ber of homes for sale in April in­creased on a month-to-month ba­sis, +1.6 per­cent from March. Also, the per­cent­age drop on a year-to-year ba­sis is the low­est an­nual drop in the last 12 months, 26.6 per­cent. It’s pos­si­ble April marked a turn­ing point for the na­tion’s in­ven­tory of homes for sale. lf the 52 metro ar­eas in the April sur­vey, only two re­ported a rise in over­all in­ven­tory from last year: Manch­ester, N.H. +3.1 per­cent and Phoenix, Ariz., +1 per­cent. Ex­tremely low months sup­ply lev­els con­tinue to be seen in cities like: San Fran­cisco, Calif. 1.0, Den­ver, Colo. 1.2, Wash­ing­ton, D.C., 1.6, San Diego, Calif., 1.8, Seat­tle, Wash., 1.8, Boise, Idaho, 1.8, lr­lando, Fla., 2.1, Detroit, Mich., 2.1, and Hous­ton, Texas 2.2.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.