U.S. housing markets are on track to be the best since 2006 with robust demand and a corresponding growth in supply (4 percent month-over-month) maintaining their springtime momentum and helping to boost sales in June 2015, according to realtor.com’s ‘Advance Read on June Trends’ which draws on residential inventory and demand trends over the first three weeks of each month.
“Factors lending themselves to the market’s upswing are the psychological effect of recently increased mortgage rates as well as the specter of the Fed raising interest rates later this year. Although demand has been strong all year, in June we’re finally beginning to see an uptick in supply as sellers become more confident about home prices,” said realtor.com Chief Economist, Jonathan Smoke.
Other demand drivers include an increase in the number of first time home buyers – many of whom are millennials sidelined by challenging market conditions. According to a recent survey of site visitors recorded in June by realtor.com, 65 percent of older millennials (ages 25-34) say they intend to purchase a home within three months – an increase of 12 percent compared to just six months ago.
May 2015 pending home sales – highest levels since April 2006
Speaking to the National Association of Realtors’ Pending Home Sales for May announced this morning, Smoke said:
“Today’s announcement regarding May’s Pending Home Sales —the highest level since April 2006—points to further increases in new and existing home sales in June. The data – corroborated by both our earlier May findings as well as our Advance Read on June Trends – all show both demand and supply improving, foretelling further gains this summer.”
Realtor.com® hotness index
The 20 hottest markets in the country according to number of views per listing on realtor.com and the median age of inventory in each market in June 2015 are:
|20 Hottest Markets||June Rank||May Rank|
|San Francisco-Oakland-Hayward, CA||1||2|
|Santa Rosa, CA||4||8|
|Dallas-Fort Worth-Arlington, TX||5||4|
|San Jose-Sunnyvale-Santa Clara, CA||6||3|
|Ann Arbor, MI||7||9|
|Santa Cruz-Watsonville, CA||10||7|
|San Diego-Carlsbad, CA||12||11|
|Austin-Round Rock, TX||18||16|
|San Antonio-New Braunfels, TX||19||24|
|Fort Wayne, IN||20||25|
* The markets making it to realtor.com’s list receive two to three times the number of views per listing on realtor.com compared to the national average and simultaneously have seen inventory move 25-40 days more quickly than the rest of the U.S. These markets rank in the top 50 on both metrics, underscoring that they are truly the hottest markets for both buyers and sellers.
Key takeaways from realtor.com’s June Hotness Index and Advance Read on June Trends 2015 include:
– California again dominated the “hottest” markets with almost half of the country’s 20 hottest real estate markets. San Francisco unseated May’s top ranked Denver, while Vallejo and Santa Rosa also made the top 5. California markets rank highly because of continued tight supply and economic-powered growth in demand.
– Texas is represented four times, with #5 Dallas-Fort Worth, #17 Midland, #18 Austin and #19 San Antonio.
– Colorado sees #3 Denver remain in the top three.
– Michigan is again represented twice, with #7 Ann Arbor and #9 Detroit, both climbing in the rankings.
– The strength of all these markets is a clear reflection of economic-powered gains, but the Texas and Colorado story is more of a continuing narrative indicative of the resilience and diversified nature of the states’ economies particularly evident with the reduced contributions from the oil industry. Michigan’s performance is related to economic recovery and very strong affordability.
– Nationally, the median list price increased to $233,000, up 7 percent year-over-year and 2 percent over May.
– Median days on market remain at 66 days, flat month-over-month and down 7 percent year-over-year. Helping create more opportunities for buyers, the listings inventory continues to grow faster, at 4 percent over May (which was up 4 percent over April) but still down over last year.
For more information visit realtor.com.