Recent housing indicators reveal signs of health in the housing market in July 2015, according to Realtor.com’s Advance Read of July Trends, which draws on residential inventory and demand trends over the first three weeks of the month.
In addition, the San Francisco, California metro hosts the best inventory and demand numbers for consumers, ranking number one in June and July 2015, according to the Realtor.com Hotness Index.
“We are now entering the time of the year when both inventory and demand typically reach their peak,” said Jonathan Smoke, chief economist of Realtor.com. “The dog days of summer slow down the pace of activity, just as the school year creeps closer. This year, we’re seeing inventory continue to grow in July, albeit at a slower pace than this spring. And while demand overall is strong, the trend in median days on market is suggesting that the market is finding more of a balance, which bodes well for more moderate price appreciation in the months ahead.”
According to the trends, home prices continue to rise upwardly with the national median list price increasing to $234,000, up 7 percent year-over-year and 1 percent over June.
On the other hand, the median number of days on the market, or the inventory, increased to 69 days, down 7 percent year-over-year, but up 5 percent month-over-month. The supply in housing usually spikes in July or August as families are anxious to close on a home before school is back in session.
“It’s typical to see a slackening in the pace of market activity during this time of year, due to back to school and the dog days of summer,” Smoke said. “Increasing median days-on-market suggests the market is finding more of a balance, but demand is still strong. This bodes well for more moderate price appreciation in the months ahead.”
Realtor.com reported that traffic and searches on realtor.com continued to set new highs in July, showing that there is still strong demand for homes. On average, these 'hot' markets receive 1.5 to three times the number of views per listing compared with that of the rest of the nation, and inventory is moving 24 to 41 days more quickly. They have also seen days on market drop by a combined average of 14 percent year-over-year.
“These hottest markets are the best in the country from both a supply and demand perspective,” Smoke said. “Sellers are seeing listings move much more quickly than the rest of the country and at an accelerating pace from just last month. Meanwhile, these markets are clearly attractive to buyers as the listings in these markets are viewed as much as three times more often than the national average.”