RE/MAX: Housing Market Recovery ‘In Full Swing’

The national housing market recovery is ""in full swing,"" according to the June edition of ""RE/MAX's National Housing Report"":http://www.remax.com/documents/insider/pr/2012/REMAX%20National%20Housing%20Report_June%202012%20Final.pdf.

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The report, released Monday, revealed that May saw increases in both home sales and median home prices for 42 of the 53 surveyed metropolitan markets.

For the fourth consecutive month, the RE/MAX report found an overall increase in median home price across the country. In May, the national median home price was $166,500, a 6.1 percent increase year-over-year and a 4.1 increase month-over-month. Of the 53 metros surveyed, a record 46 showed rises in median home price, with nine seeing double-digit increases.

Closed transactions across the United States also rose in May, with markets showing an overall increase of 12.6 percent from April and 12.8 percent from May 2011. May 2012 marked the 11th straight month of year-over-year home sales gains. Forty-eight of the surveyed metros saw increases in home sales, and 38 of those saw double-digit increases.

Days on Market (the number of days between the first listing of a home in an MLS and the day a sales contract is signed) fell in May to 92, a large drop from 96 in April and a smaller year-over-year decline from 94 in 2011. In the last year, the average Days on Market fell below 90 just twice, with July and September 2011 both seeing an average of 88. This level may be reached again in the summer as transactions rise and inventory falls.

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The inventory of homes fell 4.2 percent from April and 26.6 percent from levels seen in May 2011. The report explained that inventory continues to drop because of fewer foreclosure properties coming to market. May marked the 23rd month in a row in which inventories fell month-to-month. With the current rate of sales, the average months supply is now 4.9, down from the 5.3 average for April and the 6.9 average in May 2011. Months supply is the number of months it would take to clear a market's active inventory at the current rate of sales, with six months being considered a balanced market between buyers and sellers.

Given all these factors, the market recovery may be considered well underway, said RE/MAX CEO Margaret Kelly.

""Clearly, 2012 is the year the housing industry has been waiting for; there's a broad-based recovery taking hold,"" said Kelly. ""This recovery may not bring improvement in all sectors to all markets at the same time, but most markets across the country are experiencing the best selling season they've seen in years.""

*Top metros for sales gains:*

* Burlington, Vermont (39.3 percent)

* Albuquerque, New Mexico (35.8 percent)

* Boston, Massachusetts (29.3 percent)

* Chicago, Illinois (28.1 percent)

* Nashville, Tennessee (27.1 percent)

*Top metros for median price gains:*

* Phoenix, Arizona (34.5 percent)

* Detroit, Michigan (23.1 percent)

* Boise, Idaho (23 percent)

* Denver Colorado (14.8 percent)

* Miami, Florida (14.3 percent)