The biggest news we have is on the inventory-front. Home buyers are finally starting to see more homes to choose from - in June, new listings were up 3% (compared to June 2013) and pending sales were down 9%. This has given buyers more options than they've had in well over a year.
Along with increased inventory, absorption rates have fallen. The absorption rate measures how quickly homes come on and off the market. In June, the absorption rate fell to 3.9 months, meaning it would take 3.9 months for all homes on the market to sell (assuming no new listings enter the market).
The mix of home sales continues to move away from distressed properties (foreclosures and short sales) and towards traditional sales. This continues to be a welcome sign as we move out of a very difficult 5-year stretch for the housing market.
Homes continue to sell quickly (from a relative standpoint). In June, it took an average of 80 days for a home to sell. Compare that to 2011, when homes were taking upwards of 140 days to sell. Looking at these numbers, it's pretty amazing how quickly things have changed.
And now, the part most people care about - home prices. In June, the median sales price rose 8.2% to $210,000. We've now seen 27 consecutive months of year-over-year price gains. This is certainly welcome news to traditional sellers, who have not seen a market this strong since the bubble-days of the mid 2000's.
If you have specific questions about your area or neighborhood, please feel free to contact me! My phone number is 763-213-4617 and email is josh.pelto@remax.net
