June Marks 17th Consecutive Month That Both Home Sales and Prices Show Year-Over-Year Improvement
The month of June marked the 17th consecutive month that both home sales and prices have been higher than the same month last year. The median price of homes sold in June was $193,750, 12.6 percent higher than the median price last June. The RE/MAX Housing Report, a survey of MLS data in 52 metropolitan areas, also found that home sales in June were 4.1 percent greater than sales in June 2012. The housing recovery, which began in 2012, is continuing to produce significant increases in home prices and sales, while the number of homes for sale remains much lower than one year ago, 23.9 percent lower than June 2012.
“Summer sales are traditionally the strongest of the year, but this year we’re seeing sales at a double-digit pace above last summer," said Margaret Kelly, CEO of RE/MAX LLC. "Even after the recession, interest in homeownership remains quite high. Low mortgage rates and attractive home prices are still creating opportunities with the best home affordability the market has seen in years.”
A low supply of homes results in higher prices, but also makes it difficult for anxious byers looking for just the right house to call home. At the current sales rate, the number of months to clear the entire inventory is just 3.9, making this market more favorable to sellers. In the first quarter, more than 800,000 homeowners regained positive equity, possibly feeling more confident to place their home on the market for sale, which should help the current low inventory environment.
The June RE/MAX Housing Report shows a 4.3 percent decrease in Closed Transactions over May, but a 4.1 percent increase over sales in June 2012. This makes June the 24th consecutive month reporting higher sales than the same month in the previous year.
This year’s selling season continues to experience higher home sales than the turnaround year of 2012. Of the 52 metro areas surveyed in June, 31 reported higher sales than June 2012, with 13 reporting double-digit gains, including: Albuquerque, N.M. (+42.9%); Providence, R.I. (+25.3%); Chicago, Ill. (+20.7%); Charlotte, N.C. (+19.6%); Baltimore, Md. (+18.0%); and Raleigh & Durham, N.C. (+17.4%).
The Median Price for all homes sold in June was $193,750, which was five percent higher than the Median Price in May and 12.6 percent higher than the price in June 2012. June marks the 17th month in a row that the Median Price has been higher than in the same month of the previous year. With high buyer demand and a low supply of homes for sale, home prices are expected to remain significantly higher than last year. Of the 52 metro areas surveyed in June, only one experienced a year-to-year drop in Median Price: Albuquerque, N.M. with -4.2 percent. However, 30 metro areas reported double-digit increases.
The average Days on Market for all homes sold in June was just 65, which is five days lower than the average in May, but 19 days lower than the June 2012 average of 84. June’s 65 day average is the lowest Days on Market average in the last 12 months. The low Days on Market average is the direct result of few homes for sale and high buyer demand. Days on Market is the number of days between when a home is first listed in an MLS and when a sales contract is signed.
The number of homes for sale in June was 2.3 percent lower than the inventory in May and 23.9 percent below the inventory in June 2012. With lower percentage losses and 18 metros reporting inventory increases from May, the problem of low home inventories may be in the early stage of a rebound. Of the 52 metro areas in the June survey, 49 reported lower levels than last year.
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