Low inventory has characterized the housing recovery for several months, but might be finally showing signs of improvement. The number of homes for sale in April inched 1.6 percent higher than the number seen in March, the first monthly increase since June 2010. At the same time, Closed Transactions and Median Prices both remained 10 percent higher than last year’s levels.
The April RE/MAX National Housing Report, a survey of MLS data from 52 U.S. metropolitan areas, contained signs of a strong housing recovery in regions across the country. 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. The Months Supply of homes for sale at April’s pace of sales was just 3.6 months, the lowest supply since the RE/MAX National Housing Report began in August 2008. A balanced market is achieved with a Months Supply of 6.
“April was exactly what we needed at this time in the housing recovery. Home sales and prices continued to rise, while we started to see improvement in the number of homes for sale,” said Margaret Kelly, CEO of RE/MAX. “It may take a few months, but as prices rise and more homeowners gain positive equity, we should see an increase in the inventory of homes for sale, resulting in a much better selection for potential homebuyers.”
Source: RE/MAX