U.S. housing markets are on track to be the best since 2006 with robust demand and a corresponding growth in supply (4% month-over-month) maintaining their springtime momentum and helping to boost sales in June 2015, according to realtor.com’s ‘Advance Read on June Trends’ which draws on residential inventory and demand trends over the first three weeks of each month.
“Factors lending themselves to the market’s upswing are the psychological effect of recently increased mortgage rates as well as the specter of the Fed raising interest rates later this year. Although demand has been strong all year, in June we’re finally beginning to see an uptick in supply as sellers become more confident about home prices,” said realtor.com Chief Economist Jonathan Smoke.
Other demand drivers include an increase in the number of first time home buyers – many of whom are Millennials sidelined by challenging market conditions. According to a recent survey of site visitors recorded in June by realtor.com, 65% of older Millennials (ages 25-34) say they intend to purchase a home within three months – an increase of 12 percent compared to just six months ago.
“Today’s announcement regarding May’s Pending Home Sales —the highest level since April 2006—points to further increases in new and existing home sales in June. The data – corroborated by both our earlier May findings as well as our Advance Read on June Trends – all show both demand and supply improving, foretelling further gains this summer,” he said.
The 20 hottest markets in the country according to number of views per listing on realtor.com and the median age of inventory in each market in June 2015 are listed below.
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