The July RE/MAX National Housing Report has followed the trend on an improving housing market since the start of 2012. The trend continued in July, as home sales were 10.3 percent higher than sales last July and year-over-year home sales have now risen for 13 consecutive months. Median home prices have now reached levels higher than the previous year for six months in a row, with an increase of 3.7 percent over July 2011. Inventory is now becoming a serious challenge to this recovering market, with available homes-for-sale falling 26.8 percent lower than the same month last year. Home sales could be much greater if more inventory was available, especially in the lower price range, where most sales are now occurring. With increased demand and shrinking inventory, the average Days on Market of homes sold in July was 82.
The Median Sales Price of homes sold in July was $169,000. This price marks a 3.7 percent increase over the median of July 2011, but is off fractionally from prices seen in June, down 0.6 percent. The annual increase of 3.7 percent marks the sixth month in a row with year-over-year increases. Of the 53 metro areas surveyed for the July RE/MAX National Housing Report, an impressive 42 reported price increases over last year, with 12 metro areas experiencing double-digit gains, including: Phoenix, Ariz. +33.1 percent; Boise, Idaho +22.1 percent; San Francisco, Calif. +20.6 percent; Little Rock, Ark. +14.5 percent; Detroit, Mich. +14.1 percent; and Las Vegas +13.2 percent.
For all homes sold during the month of July, the average Days on Market was 82. This represents a drop of two days from the average in June and six days from July 2011. July represents the second month since September 2011 with a Days on Market below 90, and the lowest average since July 2010. The Days on Market average continues to fall in many markets due to low inventory. Days on Market is the number of days between first being listed in an MLS and when a sales contract is signed.
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