Home Sales Improve in August as Year-Over-Year Price Gap Narrows

September 16, 2011 (Brian Michael)

Home sales rebounded in August after a disappointing July as monthly closed transactions increased by 3.7 percent and were 18 percent higher than August 2010 according to RE/MAX’s National Housing Report (NHR).

Forty-seven out of the 53 metro areas in the report posted year-over-year increases in closed transactions. Pittsburgh, PA (+60.6%), Minneapolis, MN (+48.4%), Albuquerque, NM (+43.0%), Milwaukee, WI (+37.1%), Seattle, WA (+29.4%), Phoenix, AZ (+26.4%) and Chicago, IL (+25.7%) recorded the highest gains in closed transactions in August.

Sales prices in August were just 0.6 percent lower than in July and were 3.6 percent lower than in August 2010. The median sales price in August 2011 was $189,831, down from $193,042 in July and down from a median sales price of $196,996 in August of 2010.

Only 10 of the 53 metro areas recorded higher prices in August than they did a year earlier. The areas that posted the largest price gains were Detroit, MI (+15.7%), Orlando, FL (+14.2%), Milwaukee, WI (+10.6%) and Pittsburgh, PA (+2.2%).

The year-over-year median price difference has improved for the last five months. In July the price difference from a year earlier was 4.6 percent.

The average number of days it took to sell a home in August was 90, which was up from 88 days in July. Inventory declined in August as the average months supply of inventory dropped to 6.8 months, down from 7.2 in July and down from a 9.2 months supply of homes in August 2010.

“We’re pleased to see transactions pushing higher in August and without any artificial stimulus.” said Margaret Kelly, CEO of RE/MAX, LLC. “Although the housing recovery will continue to be uneven, the market is struggling to return to normal despite uncertainty in the economy and stubborn unemployment rates.”

Tags: RE/MAX, home sales, home prices, National Housing Report, market recovery, seasonal trends, closed transactions

Source:
RE/MAX
LoanRateUpdate.com