OUR SUMMER SELLING SEASON ENDS STRONG
The August RE/MAX National Housing Report, including data from 52 metropolitan areas, shows that home prices and sales remain higher than one year ago. August home prices were flat from July, but 6.3% higher than prices seen in August 2011. Median home prices have risen above last year’s prices for seven consecutive months. Home sales were 8.5% above the mark set last year, and for fourteen straight months have pushed higher than last year. Inventory was 29.7% below August 2011 and remains a serious challenge to this recovery. With bidding wars in some areas, buyers are facing increasing difficulties finding their dream home and sales numbers are beginning to be negatively impacted. As inventory continues to shrink, the average months supply of homes for sale was just 4.9.
“As we move from summer to fall it’s very encouraging that this year’s home selling season began strong and finished even stronger,” said Margaret Kelly, CEO of RE/MAX, LLC. “Nearly every month in 2012 experienced increased sales and prices over 2011, showing that we’ve definitely passed the bottom and we’re looking forward to 2013 being an even better year.”
MEDIAN SALES PRICE
The Median Sales Price of homes sold in August was $168,685, which was essentially flat from July, down only 0.2%. Prices peaked this summer in June, but remained higher than 2011 in both July and August. The August median price was 6.3% higher than last year, which marks the seventh month in a row with a year-over-year increase. Of the 52 metro areas surveyed for the August RE/MAX National Housing Report, an impressive 46 reported price increases over last year, with 15 metro areas experiencing double-digit gains including: Phoenix, AZ +33.9%, Boise, ID +24.1%, San Francisco, CA +22.6%, Las Vegas, NV +19.0%, Miami, FL +17.8% and Billings, MT 16.6%.
DAYS ON MARKET – AVERAGE OF 53 METRO AREAS
The average Days on Market for homes sold in August was 81. This represents a drop of 1 day from the average in July, but a 9 day drop from the 90 day average in August 2011. August represents the third month since September 2011 with a Days on Market average below 90, and the lowest average since June 2010. The Days on Market average continues to fall in many markets due to very low inventory. Days on Market is the number of days between first being listed
in an MLS and when a sales contract is signed.
MONTHS SUPPLY OF INVENTORY – AVERAGE OF 53 METRO AREAS
In August, the inventory of homes-for-sale fell 6.7% from July and 29.7% from inventory levels seen in August 2011. Month-to-month inventories have now fallen for 26 consecutive months. A shrinking inventory is helping home prices rise, but is also limiting sales. Given the current rate of sales, the average Months Supply is now 4.9, about two months lower than the 6.8 average seen in August 2011. Very low Months Supply continues to be seen in San Francisco, CA 1.2, Los Angeles, CA 1.6, Denver, CO 2.2, Orlando, FL 2.4, Des Moines, IA 2.5, Washington, DC 2.6, San Diego, CA 2.9 and Miami, FL 3.0.
WHAT THIS ALL MEANS TO YOU
Housing inventory is shrinking while values are on the rise. If you had been considering putting your home on the market, now is an excellent time. Buyers are looking for quality homes and their options are limited now. Contact me today for a free market evaluation of your property.