The April 2015 RE/MAX National Housing Report that surveyed 53 metro areas, revealed that home sales were up by 7 percent from the previous month and 6.5 percent above the mark set in April 2014. Home sales in April were higher than any other April since the report began in 2008. This continued a three-month trend in which sales were higher than both the previous month and the same month in the previous year.
“The spring selling season has gotten off to a very strong start, “said Dave Liniger, RE/MAX, LLC CEO, chairman, and co-founder. “We saw a significant jump in sales in March, and now April has pushed even higher.”
The first four months of 2015 have averaged a 4 percent increase month-over-month, RE/MAX reports. In April, 39 of the 53 metro areas surveyed reported higher sales on a year-over-year basis, and 20 of those saw increases in double-digits. Although inventory of homes for sales is 11.4 percent lower than one year ago, an increase of 2.3 percent was reported for March. On a scale where 6 months indicates a balanced market between buyers and sellers, the month’s supply of inventory for April was 3.6.
According to the report, the median sales price of a home sold in April saw an increase of 7.1 percent from the previous year at $203,500, just 0.2 percent below the median sales price in March. The median sales price has risen for 39 consecutive months on a year-over-year basis. The rise in prices can be attributed to pressure stemming from a limited inventory. Of the 53 metro areas surveyed, all but three reported higher sales prices than one year ago, with 15 rising by double-digit percentages.
The average amount of days that all homes sold in April were on the market was 71, a 7-day drop from March, and 3 days under last April’s average, the report says. Days on the market is the number of days that pass between when a home is listed in an MLS and a sales contract is signed. Every month since March 2013, homes were on the market for less than 80 days, with January and February being the exception. San Francisco and Denver experienced 25 and 26 days on the market respectively due to low inventory.
“With an improving economy and continuing low interest rates, potential buyers are motivated to enter the market,” Linger said. These conditions, along with rising prices are also encouraging sellers.”