SAN JOSE, CA - Across the country, home sellers are now enjoying the advantage of price increases, while buyers have more choices. Price appreciation and housing-inventory increases in 10 fast-turning markets signal strong home sales – contrary to moderate gains in the national housing market, according to the realtor.com June National Housing Trend Report.
"National housing trends are masking some of the excitement we're seeing in individual markets," said Jonathan Smoke, chief economist for realtor.com, the leader in providing consumers with the most accurate U.S. residential listings online. "For the last two years, listing shortages constrained home sales and frustrated buyer demand. Our June data shows monthly inventory picking up in markets already experiencing price increases and fast property turnover. These dynamics will result in strong home sales and extend the buying season past the usual June/July peak to later in the third quarter."
Homes in the Charlotte, N.C. region are selling 14 days faster compared to a year ago – the most improved in median inventory age among these markets, according to realtor.com June data. Meanwhile, Reno, NV has the biggest year-over-year home price increase at nearly 18.5 percent.
"The markets where we expect significant third quarter home sales are all very different – ranging from small to large, affordable to expensive, previously distressed to minimally affected by the downturn," Smoke said. "Diversification in the areas experiencing healthy real estate economies is a key indicator that the housing recovery has become more sustainable."
Realtor.com June data shows the national housing market is continuing to grow stronger. Median list prices are up 7.6 percent in June over last year. Month-over-month price acceleration is slower compared to April, when the home-buying season traditionally starts. National housing inventory is now roughly in line with June 2013 levels when rising home prices first generated a surge in market supply. Additionally, homes in June sold 5 percent faster than last year.
Strong supply and demand dynamics including:
Inventory increases: For-sale inventory shortages have played a significant role in limiting home sales during the past two years. Each community listed is getting its supply in check with month-over-month inventory growth. Additionally, half of these markets also are increasing on a yearly basis.
Median list price increases: Price increases encourage sellers to put homes on the market and indirectly keep inventory levels more sustainable. While each region listed had price increases on a monthly and yearly basis, they vary from hot markets with fast price acceleration, such as Reno, NV, to communities just beginning to see appreciation, such as Albany, N.Y.
Median age of inventory decreases: Declining median age of inventory indicates listings growth has not satisfied demand. Properties in these areas are selling faster than last year, demonstrating continuing homebuyers' interest that will propel sales.
Visit realtor.com for the full June National Housing Trend Report.