As we move rapidly towards the end of the first half of the year, the number of houses sold in May was not reassuring. The drop of 42% was certainly, in part, related to weather 60 to 90 days prior, but cannot simply be blamed on that single factor. At the same time, the 14.8% rise in median price counterbalanced the fall in sales. While not as strong, the 10.4% increase in average sales compared to May 2013 was also reassuring. The average price of inventory dropped over $35,000 from the previous month. The inventory itself was up to 167, which is under 4% ahead of last year. It remains at or below the inventory level for June 1st from 2006-20012.
Similar to monthly performance, the drop in number of sales year-to-date is starting to raise the question of what the level of confidence is amongst the buying public. Closings are now down a little more than 19% (and the current pipeline does not suggest that we will catch up to the levels of last year in the next couple of months). The median price is up 6.7% and while not robust that is encouraging. Meanwhile, the average price is up 15%. However, the lower number of sales reduces the total single-family home revenue by just over 7% compared to last year.