RISMEDIA, July 20, 2011— Inventories in 53 markets surveyed last month by RE/MAX are down nearly fifteen percent from a year ago, when the tax credit boom was winding down, another indication that housing markets have recovered from the tax credit-induced sales boom and the bust that followed it.
RE/MAX reports increasing sales and lower foreclosure inventories are having an impact on inventories, especially in Florida markets like Miami, where inventories are 50 percent below the level of a year ago. Other markets shedding inventory are Orlando (down 45.1%), Tampa (down 30.1%), and Phoenix (down 29.9%).
RE/MAX’s months’ supply for June was the same as May, 6.9 months, but the supply was 9.3 % below June 2010. Total inventories in RE/MAX’s survey fell 2.1% from May and now stand at 14.2% below the levels of a year ago.
Home prices rose in June for the fourth month in row in the RE/MAX survey. Although the market had a slow start to this year’s buying season, it now appears to be on track with a more seasonal performance. More metro areas are experiencing positive growth, and growth figures are increasing. Factors that continue to weigh on the market include unemployment, tight lending standards and consumer uncertainty, RE/MAX said.
“It’s very encouraging that both home prices and sales transactions have now risen for several months in a row,” says RE/MAX CEO Margaret Kelly. “It appears that this market is following traditional seasonal trends as it works its way through a recovery and back to more normal conditions.”
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