Real Estate Inventory Improves – Sales, Prices Rise
By McCoy Freeman Group // August 22, 2013
RE/MAX NATIONAL HOUSING REPORT
BREVARD COUNTY, FLORIDA – The housing recovery appears to be in full swing across the country, as well as here on the Space Coast. For the 18th month in a row, both home sales and prices are higher than the same month in the previous year. July home sales were 17.0% higher than last July and the Median Price, $189,950 was 11.5% higher. The RE/MAX Housing Report, a survey of MLS data in 52 metropolitan areas, also reports that the inventory situation improved slightly in July.
The lower availability of homes for sale has caused prices to rise significantly in 2013, but as inventory issues ease, the rate of rising prices should slow down. At the rate of home sales in July, the number of months required to clear the entire inventory was 4.0, this indicates a market more favorable to sellers. “Low inventory has been a serious concern this year, but with rising prices and fewer underwater homeowners, we’re starting to see more homes come on the market, resulting in inventory levels that are turning around. Mortgage rates remain at historic lows, and home affordability is very attractive compared to historic levels.” Margaret Kelly, CEO of RE/MAX, LLC. TRANSACTIONS YEAR-OVER-YEAR CHANGE The July RE/MAX Housing Report showed a 1.5% increase in Closed Transactions over June, and a 17.0% increase over home sales in July 2012. July marks the 25th month in a row reporting higher sales than the same month in the previous year.
The 2013 selling season continues to experience a broad-based housing recovery in all regions of the country. Of the 52 metro areas surveyed in July, 48 reported higher sales than July 2012, with 39 reporting double-digit gains, including: • Albuquerque, NM +43.8% • Raleigh & Durham, NC +38.7% • Chicago, IL +38.3% • Boise, ID +36.8% • Providence, RI +35.5% • Indianapolis, IN +30.5% MEDIAN SALES PRICE For the month of July, the Median Price of all homes sold was $189,950, 2.1% lower than the Median Price in June, but 11.5% higher than the Median Price in July. July is the 18th consecutive month with a Median Price higher than in the same month of the previous year. As buyer demand continues to run high, while the supply of homes for sale is low, home prices remain significantly higher than last year. Of the 52 metro areas surveyed in July, 49 experienced higher sales prices than one year ago. In fact, 26 metro areas reported double-digit increases. DAYS ON MARKET
The average Days on Market for all homes sold in July was just 62, three days lower than the average of 65 in June, but 18 days lower than the 80-day average in July 2012. The 62-day average in July marked the 14th consecutive month with an average below 90. The low Days on Market average is the direct result of few homes for sale and high buyer demand. Days on Market is the number of days between when a home is first listed in an MLS and when a sales contract is signed. MONTHS SUPPLY OF INVENTORY July was the fourth month in a row that inventory levels decreased by a smaller amount. The number of homes for sale in July was just 1.3% lower than the inventory in June, while still 20.7% below the inventory in July 2012. There were actually 18 metro areas reporting increases in available inventory from June, an early sign that low inventory levels are beginning to stabilize and rise. Extremely low Months Supply figures remain in some key markets. EXTREMELY LOW MONTHS SUPPLY • San Francisco, CA 1.3 • Denver, CO 1.8 • Los Angeles, CA 1.9 • Phoenix, AZ 2.2 • Washington, DC 2.3 • Orlando, FL 2.4 • Seattle, WA 2.4
ABOUT THE AUTHOR
Bobby Freeman, a life-time resident of Brevard County, has been a top Realtor in the area for two decades. In his first year as an agent, Freeman received a Rising Star award from his Brokers. Since then he has achieved numerous sales awards and has recently been presented with the prestigious RE/MAX Hall of Fame Award. Freeman, Jennifer McCoy and Nikki McCoy Freeman are family partners for RE/MAX Elite’s McCoy-Freeman Group. Together they have more than 30 years of extensive experience in all aspects of the real estate industry and have sold over $180 million. Among McCoy-Freeman Group’s achievement are RE/MAX Hall of Fame, RE/MAX 100% Club, Certified Distressed Property Experts (CDPE), Accredited Buyer’s Representative (ABR) and voted Best Realtor in Brevard County. The group has been featured in many news publications including CNN Money Magazine, CNNMoney.com, WFTV 9 ABC News, Coastal Condo Living, & Hot Retirement Towns Magazine and SpaceCoastDaily.com. For more information log on to BrevardRealtyConnection.