RE/MAX Reports Prices Stabilizing and Sales on the Rise
According to the latest RE/MAX National Housing Report, defying the seasonal trend, December home sales rose by 13.2 percent from November in a survey of 54 metropolitan areas. Home sales dropped five percent from December 2009, but this is the lowest year-over-year drop the survey has seen in five months. While some industry analysts continue to predict a serious decline in home prices in the new year, RE/MAX National Housing Report, showed home prices dropped by only 2.2 percent from levels in December 2009. The inventory of homes for sale continued a downward trend, falling 8.8 percent from November and 2.9 percent from December 2009. “It’s nice to see that sales were much higher than in November, with a year-over-year difference better than we’ve seen in months, and it’s encouraging that prices appear to be remaining stable,”said RE/MAX Chief Executive Officer Margaret Kelly. "These positive trends should build as we enter the traditionally strong home-buying months in the spring and summer.” After five consecutive months of declining home sales, December showed a 13.2 percent month-to-month rise. While the average year-to-year drop in sales for the last five months is 24.5 percent, December produced only a five percent drop from December 2009. The trend is going in the right direction and is more pronounced in certain markets. Some markets experiencing higher sales than a year ago are: Phoenix, Ariz. +12.8 percent; Miami, Fla. +9.9 percent; Tampa, Fla. +7.4 percent; St. Louis, Mo. +7.2 percent and Honolulu, Hawaii +4.3 percent. Median sales price ... year over year change December saw little change in Median Sales Price, with the average price in the Survey’s 54 metro areas down just 0.9 percent from November and 2.2 percent from the same period in 2009. Twenty-eight markets saw a positive increase in prices while 23 declined and three stayed even. Major markets with significant price increases over last year include: Cleveland, Ohio +12 percent; Indianapolis, Ind. +9.6 percent; Pittsburgh, Pa. +8.6 percent; Dallas-Ft. Worth, Texas +8.4 percent; and New Orleans , La. +6.8 percent. Days on market ... Average of 54 metro areas In December, homes that were sold in the 54 metro areas averaged 96 Days on Market—the average number of days from listing to signed contract. That’s only three days more than in November and four days longer than December 2009. Month's supply of inventory ... average of 54 metro areas Overall, inventory dipped in the month of December, down 8.8 percent from November and down 2.9 percent from December 2009. The Months Supply of Inventory in the RE/MAX National Housing Report’s 54 markets saw a slight uptick to 10.2 from a 10.0 month supply in November. A balanced market of buyers and sellers is said to be a six-month supply. The last such near-balanced market was in April 2010, when the Months Supply of Inventory stood at 5.5. For more information, visit www.remax.com.