Home Prices Continue To Rise, Inventories Up Slightly
By Bobby Freeman, Realtor // August 21, 2014
Home Sales Hit Slower Pace, Prices Rise
ABOVE VIDEO: RE/MAX researches 52 major metropolitan markets and analyzes the data to get a pulse on the U.S. housing market. Here are some highlights from this months report.
BREVARD COUNTY, FLORIDA — July home sales moderated from the month-over-month increases of the last four months, falling below June sales by 3.1 percent and dropping 6.8 percent below the number of sales seen in July 2013.
While 2014 sales have not been rising as rapidly as sales in 2013, this year remains well above the sales of the same period in 2012.
Home prices continue to rise, but at a slower rate than in 2014. July home prices were 7.9 percent higher than prices last July.
The inventory of homes for sale is moving in the right direction, with year-over-year losses growing smaller each month. Three of the last four months have seen month-over month increases in inventory.
At the rate of home sales in July, the Months Supply of inventory increased to 4.3, where a supply of 6.0 indicates a market balanced equally between buyers and sellers.
“After a slow start to the year, 2014 home sales have been improving. Sales are following the expected seasonal pattern and are approaching the levels we saw last year. As inventory continues to build the recovery continues at a more stable and sustainable rate,” said Margaret Kelly, RE/MAX CEO.
TRANSACTIONS YEAR-OVER-YEAR CHANGE
In the July RE/MAX National Housing Report, the number of home sales dropped 3.1 percent below the sales in June and also fell 6.8 percent lower than July 2013 sales.
Home sales in 2014 have not risen to the levels seen in 2013, but they are greater than what was seen in 2012 and are following the normal seasonal trends. Four of the last five months have reported higher sales than the previous month.
However, only 13 of the 52 metros surveyed reported sales higher than one year ago.
MEDIAN SALES PRICE
In the 52 metropolitan areas surveyed in July, the Median Sales Price of all homes sold was $204,550. This was 2.4 percent lower than the median price in June, but 7.9 percent higher than the median price seen in July 2013.
On a year-over-year basis, the Median Sales Price has now risen for 30 consecutive months. Because inventory is improving, home prices are not rising as rapidly as last year, when the July Median Sales Price rose 11.5 percent.
Among the 52 metro areas surveyed, 44 reported higher sales prices than one year ago.
TOP CITIES REPORTING INCREASES
• Miami, FL +10.5 percent
• Las Vegas, NV +9.7 percent
• Dallas-Ft. Worth, TX +9.1 percent
• Orlando, FL +9.0 percent
• San Francisco, CA +7.9 percent
• Nashville, TN +7.6 percent
DAYS ON MARKET
The average Days on Market for all homes sold in July was 60, two days less than the average seen in both June and July last year. July becomes the 26th consecutive month with an average Days on Market below 90.
The low Days on Market average continues to be the result of a low inventory of homes for sale and high 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
The inventory environment continues to improve.
The inventory of homes for sale in July was just 1.1 percent lower than June and 3.5 percent lower than last July.
For seven of the last eight months, year-over-year inventory reductions have been less than the previous month.
At the rate of July home sales, there was a 4.3 Months Supply of Inventory, up slightly from 4.1 in June and 4.0 in July 2013.
A supply of 6.0 is considered balanced.
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 $200 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.