Detroit and Other Cities Home Prices & Sales Trend Higher

The national median home price rose for the third straight month in April, indicating that a housing recovery is strengthening in 2012.  In the 53 metropolitan areas surveyed by the RE/MAX National Housing Report, median home prices were 3.2% higher than March and a solid 5.9% higher than April 2011.  After 18 consecutive months of year-over-year price declines, February was the first month home prices experienced an increase.  Now, March and April have followed suit creating a positive trend.  The market continues to show strength with home sales 4.1% higher than April 2011.  April becomes the 10th month sales have pushed higher than the same month a year earlier.  Inventory, Months Supply and Days on Market are all trending lower.  With current levels of sales and inventory, an expected up-tick in foreclosure properties could be absorbed if they come to market over a reasonable time frame.

“It’s encouraging to see several improving economic and housing indicators, which are pointing to a continuing real estate recovery,” said Margaret Kelly, CEO of RE/MAX, LLC.  “While home prices are still low and interest rates remain at historically low levels, it’s likely that many more potential homebuyers will leave the sidelines and jump into this market.”

Transactions – Year-Over-Year Change

Closed sales transactions in April were just 0.1% higher than March, but 4.1% higher than April 2011.  April is the 10th consecutive month to report home sales at a higher level than the previous year.  It now appears that this season will be strong throughout rather than just a few good months at the beginning of the year.  Of the 53 metro areas surveyed in April, 39 saw higher sales than one year ago, and of those, 18 saw double-digit increases including:  Milwaukee, WI +38.4%,  Albuquerque, NM +30.2%, Nashville, TN +26.2%,  Providence, RI +21.7%,  Des Moines, IA +21.4%, and  Chicago, IL +19.8%.

Median Sales Price

The Median Sales Price of homes sold in April was $161,000.  This price is 3.2% higher than the March median price and 5.9% higher than the median price seen a year ago.  April is the third consecutive month in the last 21 months to experience a year-over-year increase.  The April RE/MAX National Housing Report of 53 metro areas revealed that  43 metro areas saw price increases over last year, 12 posted double digit gains including:  Phoenix, AZ +25.4%, Detroit, MI +25.4%,  Miami, FL +24.0%, Denver, CO +15.0%, Omaha, NE 14.9%, and Tampa, FL +14.7%.

(Note: Median Sales Price is now being calculated as a straight median within and among all metro areas and is no longer being weighted)

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