“According to the latest statistical data collected by the Missouri Association of REALTORS®, Missouri’s real estate market continues to reveal steady gains in home value and stable home sales. While second quarter statistics show gains of 6% or higher, June marks the fifth consecutive month of median price increases when compared to the previous year. In addition, three of the five months posted gains of 5-10%. The following are a few highlights from this June 2012 report.
* After rising 18% in May, home sales leveled off in June, dropping slightly by less than 1%. June home sales totaled 6,084. Year over year sales for the month of June exceeded those recorded in 2011 by 4.9%.
* Home sales for the second quarter totaled 17,351, up 10.6% from the second quarter of 2011 but down 5.3% from the second quarter of 2010.
* Both the median and the average purchase price of a home climbed in June and both figures are 5-7% higher than prices posted from June 2011.
* Second quarter comparisons for the median and average purchase price are up as well. The average purchase price for the second quarter of 2012 is up 6.7% when compared to the second quarter of 2011 while the median price is up by 8.7%.
* Homes here in Missouri have been selling at a quicker pace for the past two months. Prior to May, homes were sitting on the market for approximately 145 days, a figure that remained consistent for seven straight months. Homes are now selling at an average of 134 days. A year ago, homes were moving off the market in 139 days on average and an average of 130 days two years ago.
Although Missouri prices have been rising since January, home prices are still in favor of the buyer. In addition, current mortgage interest rates remain at an all-time low. According to Freddie Mac, the national average commitment rate for a 30-year conventional fixed rate mortgage hit a record low in May of 3.80%. In June, the 30-year rate dropped again, down to 3.68%, setting a new record low. According to NAR’s housing affordability index, a median-income family can easily afford a median priced home. The National Association of REALTORS® projects the affordability index will be at an annual high for the remainder of the year, with little movement in mortgage interest rates or home prices.
While buyer interest on the rise, uneven job growth is hindering the recovery process for the housing market. According to the latest labor market report, job creation slowed in the second quarter, to a rate that has not been seen in nearly two years. Potential home-buyers that are unable to secure a home loan are forced into the rental market, a market that is currently experiencing vacancy rates at their lowest levels since 2001. The high demand for rental properties continues to push rental prices up at a record-breaking pace. Adding to fuel to the fire are mortgage restrictions. Strict mortgage requirements continue it to be a hindrance for some potential home-buyers. It is recommended that home-buyers check their credit and look at loan availability as soon as they decide they want to buy.”
All information provided by the Missouri Association of Realtors