As predicted, the residential real estate market is charging forward as we transition to the “spring market”. That’s right, despite the weather, the spring market is on!
New listings increased 5.5% over March of 2013. This will give buyers more choices and we hope this trend continues. Pending sales (-8.4%) and Closed sales (-16.7) were down because of the low number of listing over the past few months. Year to date, we have had 2.8% few listings than 2013. This is a good example of the effect of the supply-demand balance.
Due to the shortage of traditional listings and the sharp decrease in “distressed” listings, the median sales price continued to increase. The median sales price for March was $190,000 which marks the 25th consecutive month of year-over-year price gains.
Not surprisingly, both the total number of homes for sale and month’s supply of homes for sale decreased. “Inventory of Homes for Sale” which is the total number of listing categorized as active on the Multiple List Service (MLS), decreased by 4.1% compared to March 2013. Another statistic I watch is “Month’s Supply of Homes for Sale”, which is calculated by dividing the current listing inventory (supply) by pending sales (demand). With 3.1 month of homes of sale, the market favors sellers. That said, the low interest rates, pent up demand and positive economic news continues to drive a large number of buyers.
In short, the market is hitting full stride and conditions are looking great for sellers and still good for buyers.
Stay tuned to this evolving real estate market.
*All statistics are derived from the Regional Multiple Listing Service (RMLS)