(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
DENVER-The June RE/MAX National Housing report shows that the housing recovery is real. On a year-to-year basis, home sales have now risen for 12 straight months and prices have inched higher for the past five months, according to the report.
Of the 53 metro areas included in the 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,” the report says.
According to the report, available homes for sale dropped 5% from May and 27.4% from June 2011. “This declining inventory has created a seller’s market in many areas with multiple bids and offers occurring frequently.”
According to Margaret Kelly, CEO of RE/MAX, “Although the housing market has a long way to go to make a full recovery, all signs now show that it’s on the right path and has improved every month so far this year. This selling season is the best in years, and those who thought that the positive trends would quickly correct have been proven wrong, because many consumers again feel comfortable buying or selling a home.”
The Median Sales Price of homes sold in June was $170,067. The price marks a 2.5% rise from the median in May and a 3.7% increase from June 2011, according to the report.
Transactions – Year-Over-Year Change
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| Closed transactions for June increased 2.1% from May and 5.0% from June last year. The figures make June the 12 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, says the report. Of the 53 metro areas surveyed, 40 saw higher sales than one year ago. Days on Market – Average of 53 Metro Areas |
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| The average Days on Market for homes sold during the month of June was 84, representing a significant drop of eight days from May and six days below June 2011. June represents the first month since September 2011 with a Days on Market below 90 and the lowest average since August 2010. A falling Days on Market average is due to the low inventory that many markets are experiencing, says the report. Months Supply of Inventory – Average of 54 Metro Areas |
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| The inventory of homes for sale fell 5% from May and 27.4% 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. |
*Source for charts: RE/MAX
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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.
