For the 4th month in a row, June home sales rose higher than sales in the previous month, according to the June RE/MAX National Housing Report released this week. Closed Transactions in June were 4.5 percent higher than May transactions, and 1.95 percent lower than transactions in June 2013.
The 1.95 percent year-over-year difference is the closest that sales activity has come in 2014 to matching the rapid rise seen in the selling season of 2013. While both credit availability and inventory remain tight, June home prices continued to rise higher, with a 9.6 percent increase over the same time last year. Inventory is beginning to show signs of improvement, as June is the 3rd month in a row with more homes for sale than the previous month.
At the rate of home sales in June, the Months Supply of Inventory increased to 4.1, where a supply of 6.0 indicates a market balanced equally between buyers and sellers.
“The increasing inventory of homes for sale is having a positive impact, despite some lingering challenges with lending standards, so the recovery remains in place. If the overall economy improves, history has shown that housing is likely to stay in line with long-standing seasonal trends,” says Margaret Kelly, RE/MAX CEO.
In the June RE/MAX National Housing Report, the number of home sales rose 4.5 percent above sales in May. However, sales were still 1.95 percent below June of last year. After a sluggish start to the year in January and February, all 52 surveyed metro areas reported monthly sales increases in March. And starting in March, four consecutive months have reported higher sales than the previous month. The trend may have started late, but 2014 appears to be following a traditional seasonal sales pattern.
Median Sales Price of all homes sold was $210,000. This was 6.0 percent higher than the median price in May and 9.6 percent higher than the median price seen in June 2013. On a year-over-year basis, the Median Sales Price has now risen for 29 consecutive months.
Because inventory is improving, home prices are not rising as rapidly as last year, when the Median Sales Price rose 12.6 percent in June. Among the 52 metro areas surveyed, 41 reported higher sales prices than one year ago. Eight reported double-digit increases.
For all homes sold in June, the average Days on Market was 62, four days lower than the average seen in May and three days lower than the average in June last year. June becomes the 25th consecutive month with an average Days on Market below 90. The low Days on Market average continues to be the result of a low inventory of homes for sale and high 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 inventory situation is improving. June is the 3rd time in the last 12 months that there was an increase in homes for sale from the previous month. Inventory increased 0.3 percent from May, but was still 4.2 percent below the inventory level of June 2013. At the rate of home sales in June, there was a 4.1 Months Supply of Inventory, up slightly from 3.8 in May and 3.9 in June 2013.
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