The real estate market is approaching the hot summer selling season right now. In fact, home prices/sales in Las Vegas are reporting an increase in the summer. The demand for home sales in June 2016 was 0.7% above the levels of June 2015. Home sales rose 9.4 % over sales in May 2016 which brings the Median Sales Price to $229,900 in June, which shows a 2.2% increase compared to the prices of June 2015.
As buyers show more interest in buying homes this summer, the number of homes for sale fell by 15.6% in June this year compared to the levels in June 2015. The reduction in homes for sale has made inventory supply somewhat of a challenge after all. This situation is mostly prevalent in West Coast Metros. With the rate of home sales in June 2016, the National Monthly Supply of Inventory remained at 3.2, which is a slight improvement compared to 3.0 in May 2016
Is It a Buyers Market?
Dave Liniger, Co-Founder, Chairman of the Board, and CEO of RE/MAX had this to say about the latest trends in the real estate market – “2015 was the best year so far for home sales. It is encouraging to see sales remaining above the levels of 2015 right now. Moderating prices are a good thing for the real estate market. In fact, homeowners see an improvement in their equity. Hence, there is a less chance of home buyers being priced out. We have to find an answer to the ongoing inventory challenges. But the stabilization we see in the market – month over month – is a positive sign.”
“The increases in home value are well within a healthy range nationally. In fact, variances across the country could have an impact on the owners’ perception. But homeowners should understand that the way they perceive their home’s value could differ from how an appraiser views it. This can make or break a home sale or mortgage refinance,” said Bob Walters, the Chief Economist of Quicken Loans.
Closed Transactions – Changes Year After Year
More than 53 metro areas were surveyed in June this year. The average number of home sales was up 0.7% than the figure of June 2015. It was an increase of 9.4% over the previous month. The sales figure was slightly over the strong numbers seen in June 2015. It showed a 6.7% increase over the average month to month increases from May to June over the past eight years. Similar to the previous months of 2016, June sales were strong in the Northeast region. Thirty-one of the 53 metro areas surveyed across the country reported a higher number of sales compared to last year. Six of these metro areas reported double-digit increases such as Las Vegas NV +13.2%, Augusta ME +22.7%, New York NY +13.1%, Trenton NJ +11.1%, Hartford CT +10.2%, and Cleveland OH +11.1%.
Median Sales Price – Median Of The 53 Metro Mean Prices
The median of the fifty-three Metro Median Sales Prices was reported as $229,900 in June this year which is an increase of 3% from May and an increase of 2.2% from June last year. In fact, June is the 53rd consecutive month without any drop in prices from the previous year. The monthly average of the year over year price increase was 7.6% in June 2015. In fact, the 2.2% rise reported in June signals a moderation in price increases which will ease pressure on home affordability after all. Only four metro areas showed a year over year drop in Median Sales Price among all the 53 metro areas that were surveyed in June this year. All the other metro areas reported higher prices compared to one year ago. Seven out of them showed double-digit percentages such as Orlando FL +13.9%, Tampa FL +14.1%, Portland OR +12.6%, Boise ID +10.1%, Augusta ME +10.1%, Denver CO +11.1%, and Honolulu HI +13.1%.
Days On Market – The Average Of 53 Metro Areas
The average days on market for all the homes that were sold in June 2016 was reported as 54, which shows a 4-day reduction from the mean of 58, both in May 2016 and June 2015. In fact, June 2016 became the 39th consecutive month where the days on the market average was 80 or less. Seattle, Denver, and San Francisco were the three markets that reported the lowest inventory supply. The days on market reported were 25, 23, and 21 respectively. The averages for the highest days on market were reported in Augusta ME at 143, which was down from 174 in May this year. In Des Moines IA the average was unchanged at 103. Days On Market is defined as the number of days between when a home is listed in an MLS®, and the sales contract is signed.
Month’s Supply Of Inventory – An Average Of 53 Metro Areas
The quantity of homes listed for sale in June this year was 0.7% lower than the figure of May this year. It was 15.6% lower than the number reported in June 2015. In fact, June reported a subsequent inventory loss of less than 1% similar to May this year. This stabilization of listings on a month to month basis is a great sign during the summer season. The Months Supply of Inventory was 3.2, based on home sales in June 2016. This figure is almost similar to last month and last year – 3.0 and 3.6 respectively. In fact, a 6.0 month supply will indicate a market balance between the buyers and sellers. The number of metropolitan areas with a Months Supply Inventory below 2.0 showed signs of stabilization at 8, which was down from 10 reported in May. There were eight metros reported with less than a two-month supply such as Denver CO 1.3, Portland OR 1.5, Omaha NE 1.8, Boston MA 1.5, San Diego CA 1.9, Seattle WA 1.2, Dallas-Ft, Worth TX 1.9, and San Francisco CA 1.3.
The market research featured in this article has been cited from http://www.remax.com/newsroom/press-releases/june-2016-remax-national-housing-report.htm