RE/MAX: Home Prices Hang Tough

Year to year prices in May are still 7.2 percent below those of a year ago, but they’ve virtually the same as April’s on a year to year basis. However, the number of closed transactions and price also increased from April to May.

The month-to-month findings from the May RE/MAX National Housing Report gave the international real estate franchise a reason to hope the trend will continue.

Margaret Kelly, chief executive officer of RE/MAX, said positive monthly data could signal a trend that will manifest throughout the remainder of 2011. “It’s a very good sign that prices are starting to rise on a monthly basis,” Kelly said. “This may indicate that we’ve turned the corner and are headed in a positive direction.”

RE/MAX reported the number of closed transactions in May increased 3.3 percent over April, although sales remain 13.6 percent below a year earlier. RE/MAX blamed problems getting financing, poor appraisals and unemployment seem to be the hindrances to recovery.

In May, 42 of the 53 metropolitan markets surveyed by RE/MAX experienced a monthly rise in transaction volume, with 15 markets seeing double-digit increases. Five metro areas witnessed an increase in sale volume compared to a year earlier. Phoenix sales rose 10.9 percent compared to May 2010, Miami sales increased 10.2 percent, Las Vegas sales rose 9.1percent, Tampa, Fla., increased 3.5 percent and Providence, R.I., sales climbed 1.8 percent.

The average amount of days a home spent on the market in May declined to 94 days. Time spent on the market has been consistently decreasing since the beginning of the year, RE/MAX said. The company reported a housing inventory equal to nearly 7 months supply, down from 8.5 months in May 2010.