In May, both home sales and home prices rose at double digit rates above levels seen in May last year. Sales increased by 11.6 percent and the Median Price by 10.8 percent. May marks the fourth month in a row that home sales and prices have risen higher than the previous month and higher than the same month last year. The data suggests that the housing recovery that began early last year is gaining momentum in 2013.
Reduced inventory continues to be a concern, although for May and April month-to-month changes have shown signs of stabilization. The RE/MAX National Housing Report, a summary of MLS data from 52 metropolitan areas, also found that the number of homes for sale in May was nearly unchanged from April, but still lower than last year by a significant 26.4 percent.
The corresponding Months Supply in May was a low 3.5, a clear indication of a sellers’ market. The result of low supply and high demand is rising prices and a low average Days on Market, just 70 in May. As home prices rise, millions of homeowners gain positive equity. With a brighter financial outlook, many will feel comfortable selling their homes and the inventory shortage should be greatly reduced.
“After a few years of disappointing data, we’re pleased that a housing recovery is finally in full swing. The month of May continues the trend we’ve been seeing in 2013: steady and consistent growth,” said Margaret Kelly, CEO of RE/MAX. “Last year was the year of the housing turn-around, and this year represents a start on the road to sustainability.”
Source: RE/MAX