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