Monthly Increase In Home Inventory May Mark Turning Point In Supply
April showed first signs that the market is finally seeing a shift in the supply-to-demand housing ratio. The supply situation has been grim lately with low inventory stunting home sales. RE/MAX’s latest National Housing Report shows that data from 52 metro areas shows April’s sales pace was 3.6 months—6 months is considered a “balanced” market.
That said, the RE/MAX data also showed a monthly increase in April in the overall number of homes for sale. The last time this happened was June 2010. The market saw a 26.6% year-over-year drop in inventory, the lowest annual drop in the last year.
The RE/MAX report says, “Low inventories contribute to a limited growth in sales, preventing some buyers from closing on the home of their choice. But if inventories can rise to a more balanced level, the recovery should strengthen and experience even more home sales.”
Home Prices Also Continue Upward
Adding to the good news, closed transactions and prices continued to rise on both a monthly and a yearly basis. The summer selling season is projected to be even stronger than last year’s. Forty-one of the 52 areas surveyed saw higher sales volume in April than the same time last year. The median price for all homes sold in April was $177,200, which is a 4.7% monthly increase and 10.7% yearly rise.
April marked the 15th month where the national median price increased on an annual basis. The average days on market for all homes sold in April were 77, which is 19 days fewer than April 2012.