The 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,” said realtor.com Chief Economist, Jonathan Smoke. “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.”
Other demand drivers include an increase in the number of first time homebuyers – 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% compared to just six months ago.
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 here.
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California again dominated the “hottest” markets with almost half of the country’s 20 hottest real estate markets. San Francisco unseated May’s top ranked Denver, while Vallejo and Santa Rosa also made the top 5. California markets rank highly because of continued tight supply and economic-powered growth in demand.
Texas is represented four times, with #5 Dallas-Fort Worth, #17 Midland, #18 Austin and #19 San Antonio. Colorado sees #3 Denver remain in the top three. Michigan is again represented twice, with #7 Ann Arbor and #9 Detroit, both climbing in the rankings.
The strength of all these markets is a clear reflection of economic-powered gains, but the Texas and Colorado story is more of a continuing narrative indicative of the resilience and diversified nature of the states’ economies particularly evident with the reduced contributions from the oil industry.
Michigan’s performance is related to economic recovery and very strong affordability. Nationally, the median list price increased to $233,000, up 7% year-over-year and 2% over May.
Median days on market remain at 66 days, flat month-over-month and down 7% year-over-year. Helping create more opportunities for buyers, the listings inventory continues to grow faster, at 4% over May (which was up 4% over April) but still down over last year.