Home sales in May were greater than in any other May since 2008, while home prices continued to rise, according to the RE/MAX National Housing Report. Sales are on a four-month trend in which they were higher than both the previous month and the same month in the previous year.
“Many positive factors are contributing to a strong housing market this year. Job growth and wages are slowly improving, while rents are increasing rapidly and mortgages are becoming much more accessible,” said Dave Liniger, RE/MAX, LLC CEO, chairman, and co-founder. “When these factors are coupled with continuing low interest rates, the result is a growing number of consumers with the confidence to buy or sell a home.”
According to the report, completed transactions in May were 8.9 percent higher than in April and 3.5 percent higher than May 2014. The median sales price of homes sold has risen for 40 consecutive months.
Home price also continued to increase, the report said. In May, the median price was 7.8 percent above the price seen last year at $212,910. The average month-over-month increase for the first five months of 2015 has been 3.6 percent. Thirty-eight metro areas reported higher sales on a year-over-year basis, with 11 reporting double digit increases in May.
The average days on market, or the number of days between when a home is first listed in an MLS and a sales contract is signed for all homes sold in May dropped seven days from April to 64, and two days below the average of 66 in last year, the report said. San Francisco and Denver are markets with very low inventory, with its homes staying an average of 23 days on the market. Burlington, Vermont has the highest number of days on the market at 108.
The inventory of homes for sale increased by 0.4 percent increase from April, the first time back-to-back monthly increases occurred since May and June 2014, RE/MAX reported. As home sales continue to grow, the months’ supply of inventory in May was 3.6 on a scale where six months indicates a market balanced equally between buyers and sellers.
Click here to view the RE/MAX's National Housing Report.