The basic scoop.
Summary: Prices are up, inventories are down.
The resale market now has an effective inventory of 1.2 months in the multiple listing service (MLS), pricing continues to escalate as the buying environment right now is closer to the 2004-2005 period as opposed to the lowest levels reached in 2011. The median resale closing price jumped another 32 percent from the prior year, reaching levels last witnessed four years ago. Cash buyers represented 58 percent of closings in the past month, squeezing out a number of owner-occupants seeking a home.
New homes
Builders recorded 581 closings during March, bringing the year-to-date closing count to 1,590. Closing volumes for the month were up 67.0 percent from the prior year and 87.3 percent for the quarter. Looking back over the past 12 months indicates 6,130 new homes were closed, an increase of 58.6 percent.
The median new home price was up 8.7 percent for the year. The average price per square foot on units with known sizes increased 15.9 percent to $114
Resale homes
The number of resale closings during March was 27.1 percent below the prior year (3,862 units). On a year-to-date basis, closings were off 22.6 percent (10,870 units). During the past 12 months, the number of closings is down 16.9 percent to 49,375. Lower inventories appear to be having an impact on resale closing volumes.
The median resale home price escalated significantly to $138,151 in March (+31.6 percent from the pervious year) as the mix of closings continues to shift toward non-distressed closings and away from short sales, auction and REO sales. Compared to the prior year, prices are up across all sales types. The average price per square foot was up 34.1 percent to approximately $90.
That’s it for now. Let me know if you have any questions.
