"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,” Dave Liniger, RE/MAX, CEO, chairman and co-founder said in an official release. “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."
May also marked the fourth consecutive month in which both year-over-year and month-to-month sales were bested.
“Completed transactions in May were 8.9 percent higher than in April and 3.5 percent higher than in May 2014,” the release states. The median sales price of a home sold in May was $212,910. That’s 7.8 percent above the May 2014 price and 4.4 percent higher than April’s mark. Prices have increased for 40 consecutive months.
RE/MAX surveyed 53 total metro areas and 50 reported higher prices, with 12 reported double-digit increases: Denver, +16.6%; Detroit, +15.4%; San Francisco, +13.0%; Dallas-Ft. Worth, +12.8%; Birmingham, +11.9%; and Milwaukee, +11.9%.
Average days on market, meanwhile, dropped seven days month-over-month to 64.
“May is the 26th month with a Days on Market average of 80 or below,” the release states. “In markets with very low inventory, such as San Francisco and Denver, Days on Market was as low as 23.”
With housing markets on the up-swing over the past several months, originators can expect a busy summer – most often the busiest season for mortgage professionals
May home sales were greater than any previous May since RE/MAX began publishing its National Housing Report in 2008.