Sales of single family residential properties were up 20 percent in May, compared to May 2014, according to data released by the Ann Arbor Area Board of REALTORS®.
365 units were sold in May, compared to 304 a year ago. Sales of all property types are up 16.6 percent over last May, with 491 properties sold, compared to 421 sales last year. Strong employment opportunities and low inventory continue to drive the market. New residential listings were even with last year, with 621 new listings posted in May, compared to 616 coming on the market in May 2014.
Low supply of listings and high demand continue to push prices higher. The average residential list price was up 3.7 percent in May at $286,456, compared to $276,117 a year ago. The average residential sale price was $280,830, an increase of 3.5 percent over $271,285 in May 2014.
Pending home sales rose in April for the fourth straight month and reached their highest level in nine years, according to the National Association of REALTORS®. Led by the Northeast and Midwest, all four major regions saw increases in April.
Lawrence Yun, NAR chief economist, says the steady gains in contract activity each month this year highlight the fact that buyer demand is strong. "Homeowners looking to sell this spring appear to be in the driver's seat, as there are more buyers competing for a limited number of homes available for sale," explains Yun. "As a result, home prices are up and accelerating in many markets."
Yun adds, "The housing market can handle interest rates well above 4 percent as long as inventory improves to slow price growth and underwriting standards ease to normal levels so that qualified buyers - especially first-time buyers - are able to obtain a mortgage."
To see more housing statistics for May 2015, please see this PDF.