The temperature this summer isn’t the only thing that is heating up. According to Realtor.com the nation’s real estate market is on fire with an increase of 7% in median home prices up to $233,000 for June with median days on market falling 7% to a mere 66 days, in the real estate industry this is huge. While these numbers are a national average, we’re seeing similar performance across many Massachusetts real estate markets as well.
Demand is still running strong and outweighing inventory levels, which are at near historic lows for this time of year. We experienced a mere 4% increase from May to June, yet numbers are still lower than last year in 2014. What does the forecast look like for our season? Realtor.com chief economist, Jonathon Smoke states "Our early read of real estate trends in June suggests good news ahead for the U.S. residential real estate market, especially in the hottest markets with healthy growth in supply." Backing his statement are the statistics that Realtor.com is seeing on their own site. In fact, for the month of June they were seeing a 40% increase year over year for unique visitors on the site. All good signs for the health of the real estate industry and our economy.
To further drill down to see where this demand is, Smoke and his team studied some 300 markets with respect to which areas has listings with the greatest amount of views and where homes were selling quickest with fewest days on market. In sum, the report covers the top 20 medium to large markets.
With no surprise California holds first place with San Francisco in the lead at #1. A historically beautiful city with great industry and real estate, “San Fran” has continued to be in high demand standing the test of time. But the Cape Ann real estate market isn’t far behind.
What does this mean? While we’re seeing a balancing of the scales, now is still a good time to sell as it is a seller’s market. Low inventory means fewer days on the market with a higher opportunity for bidding wars. While we’re entering the summer market which is typically more relaxed than the busier spring or fall markets, low inventory means there will still be a significant demand for appropriately priced real estate.