DENVER-For the second month in a row, home prices have risen higher than a year ago. Median prices in March were 5.8% higher than March 2011 in the 53 metro areas surveyed for the recent RE/MAX National Housing Report. February marked the first time in 18 months that home prices rose higher than the previous year, and year-to-year price increases haven’t occurred in two consecutive months since August 2010, according to the report.
Following these trends, the spring and summer months should experience increased activity. With falling inventory and many markets witnessing multiple offers with bidding competitions, prices are likely to continue to rise in many areas. “With buyers starting to jump into this market, this year’s selling season is shaping up to be the strongest we’ve seen in years,” explains Margaret Kelly, CEO of RE/MAX LLC. “Although we don’t expect home prices to rise in every market at the same rate, the worst is definitely behind us, and a slow, steady recovery is taking hold.”
 |
| March home sales were 25.4% higher than sales in February and 1.5% higher than March 2011. This represents the 9th straight month that sales have been higher than levels in the previous year. Good weather, low interest rates, attractive pricing, and improving consumer confidence have drawn many buyers into this year’s growing market. Of the 53 metro areas included in the March survey, 33 experienced a year-over-year increase in sales, and 17 of those saw double-digit increases including: Wilmington, DE +41.8%, Omaha, NE +30.6%, Providence, RI +26.6%, Tulsa, OK + 26.0%, Chicago, IL +23.7% and Milwaukee, WI +21.4% |
 |
| For homes sold in March, the Median Sales Price was $184,525. This represents a 7.3% price increase from February, and a 5.8% increase from the March 2011 median price. March marks only the second year-over-year price increase in 19 months and the first consecutive increase since August 2010. In the March RE/MAX National Housing Report of 53 metro areas, 36 experienced price increases from March 2011, with 10 seeing double-digit increases including: Detroit, MI +22.8%, Miami, FL +21.8%, St. Louis, MO +18.5%, Phoenix, AZ +18.2%, Atlanta, GA +13.7% and Orlando, FL +12.7. |
 |
| For homes sold in March, the average days on the market was 101, which was two days less than the average reported in February, and three days less than the 104 average seen in March 2011. Only two times in the last 12 months was there a “days on market” average below 90: July and September 2011 both reported 88. Days on market is the number of days between first being listed in an MLS and when a sales contract is signed, says RE/MAX. |
 |
| The average inventory of homes-for-sale in March for the 53 surveyed metro areas dropped 2.8% from February and also dropped 23.2% from March 2011. Month-to month inventories have now fallen for 21 consecutive months, mostly as a result of lower foreclosure rates. With the size of this active inventory, the resulting Months Supply is 5.3 months, given the current rate of sales. This is a month less than the 6.6 supply seen in February and almost 2 months less than the 7.1 supply in March 2011. Months Supply is the number of months it would take to clear a market’s active inventory at the current rate of sales. A six-month supply is considered a balanced market between buyers and sellers. |
We Also Recommend:
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
