The month of May showed the market what real estate is all about, bringing about the fastest movement of homes for sale since the onset of the housing market recovery. The fact that real estate prices are soaring to record highs isn't slowing down sales paces.
Preliminary data reveals that the median age of properties (meaning time on the market) was 65 days, unchanged from a year ago, yet three days sooner than last month. Median home prices were a comfortable at $250,000, two percent higher than April and nine percent up from one year ago. Housing inventory rises more and more with each passing month, yet still seams to be lower than it was a year ago. This month boasts the addition of more than 550,000 homes added to the market.
May's supply and demand has made for a very strong season in the housing market. Low mortgage rates, paired with repressed demand, are driving buyers into the market with tremendous urgency. Due to the constant battle against limited inventory, prices continue to reach record highs.
Pressure is somewhat relieved by the strides of new single-family housing construction and new home sales. Potential buyers are opting for new home contracts rather than risking competitive bid situations. The existing home market will eventually balance out as the share of new homes sold continues to rise, resulting in lower price appreciation, but we are not yet there!
- Days on market are expected to maintain a median of 65 days, down 4% from April, yet the same as May of 2015.
- A record high median list price of $250,000, an increase of 9 percent year over year and 2 percent month-over-month should be the final outcome for the month of May.
- May's listing inventory increased by 4 percent above April's, yet inventory decreased by 4 percent year over year.
- Average days on market should decrease by three days when compared to April's average days on market.
If you'd like to learn more, please don't hesitate to message Lang Premier Properties online or call us at 1-855-526-4466.