Nearly two months into the spring homebuying season, there are signs throughout the country that the housing market is making positive strides toward a recovery.
One of the hardest hit states affected by the housing crisis was Florida, but April data from Florida Realtors shows improvements for the Sunshine State.
Pending sales for single-family homes increased to 38% in April, compared to 30% the previous month. There was also good news for condominiums and townhomes during this time period, in which 25% of contracts were signed but not yet closed, representing a 5% jump from March.
Meanwhile, median prices continued to rise from last year. The average price for a single-family existing home was $144,350 in April, up 10% from a year ago. Condominium prices saw their average values increase year-over-year by 16.1 to $108,000.
Because more sales are now pending, the inventory of homes has been reduced. In April, there was a 5.8 months supply of single-family homes available on the market, compared to 5.9 in the previous month. For townhouses and condominiums, the supply of inventory stood at 5.7 months, down from 6 months in March.
“Here in Florida, we’re seeing some strong numbers that show positive momentum for the state’s housing recovery and our economy,” said Summer Greene, president of Florida Realtors. “Overall, we are happy to see the market move in this direction and expect this trend to continue.”
The residential real estate market also moved in a positive direction for Southwestern Pennsylvania, West Penn Multi-List said.
In this region, the first four months of 2012 are tracking ahead of the same period in 2011, with improvements seen in the number of homes under agreement, new listings and average sale price. The number of homes placed under agreement increased 19% year-over-year (12,432 in 2012 homes versus 10,446 in 2011); new listings were up 5.2% (12,648 in 2012 compared to 12,021 last year); and average home sale price increased 4.1% going from $146,812 to $152,865.
“People should be very encouraged with this data,” said Ron Croushore, president of the West Penn Multi-List. “With sales outpacing new listings, the need for more inventory, coupled with the increasing average sale price, should incentivize potential sellers to list their homes for sale now. We anticipate an active market through the summer months.”
Another state drastically affected by the housing downturn was California, but the Golden State is off to a strong start to the seasonal homebuying period.
California home sales and median price both jumped in April, with sales rising up to their highest level in more than two years and the median price rising above $300,000 for the first time in 16 months, according to the state’s trade association of Realtors.
Closed escrow sales of existing, single-family homes increased to an annualized rate of 555,300 units in April, according to information collected by CAR from more than 90 local Realtor associations and MLSs statewide. Monthly sales were 10% higher than March and 11% greater than the same time period last year.
Throughout the state, the average price for a home was $308,050 in April, representing the first time that the median price rose above $300,000 since December 2010. This figure is up 5.7% from March and 4.7% higher than the median sales price in April 2011, which was $294,140.
“A bright economic picture, coupled with record-high housing affordability, pushed the spring home buying season off to a strong start,” said LeFrancis Arnold, president of the California Association of Realtors. “With a continuing improving economy and interest rates declining to new record lows in recent weeks, we should see a steady improvement in the housing market throughout the end of the year.”
The percentage of homebuyers who could afford to purchase a median-priced, existing single-family home in California rose to 56% in the first quarter this year, up 3% from a year ago, which is the highest ranking since CAR started tracking this figure.
In San Francisco, housing affordability rose or remained stable in all counties except Contra Costa, where affordability declined by one percentage point.
Santa Clara County in California is one area showing multiple signs of a robust recovery as prices are up, days on the market are shorter and the number of closed sales is increasing.
During April, the average price for a single family home in Santa Clara County was $834,189, a 6% increase from April 2011. At the same time, a condominium’s median price in this county was $395,751, an 8.7% jump from last year.
Single-family homes have stayed on the market for far less days in 2012, going from 77 in 2011 to 58 through the first four months of this year. Condominiums are following a similar pattern, with properties being up for sale for only 55 days compared to 90 days experienced a year ago.
Inventory in Santa Clara County has reached one of the lowest levels in a decade, with 2,573 single-family properties and 956 condominiums up for sale in April. At this time last year, there were 4,180 single-family assets and 1,761 condominiums on the market.
“We’re consistently seeing offers at or very near list price,” said Barbara Lymberis, president of the Santa Clara County Association of Realtors. “Many homes are receiving multiple offers and therefore are selling over the list price. If you’re considering selling, do it now, while demand still outstrips supply.”
