RE/MAX Reports National U.S. Home Prices Rise, First Time in 18 Months

---

(Denver, CO) -- For the first time in 18 months, home prices in February rose higher, according to the monthly RE/MAX National Housing Report.

With a median price of $171,881, prices in the 53 cities surveyed by the RE/MAX National Housing Report rose by 1.1 percent over February 2011. Home sales were even higher, up 8.7 percent from one year ago.

With a positive sales trend of eight straight months above the previous year, RE/MAX is anticipating "very strong home-selling season" in 2012.

As a result of reduced foreclosure activity, inventory continued a downward trend for the 20th straight month, 22.4 percent lower than the housing inventory in February 2011, the RE/MAX report shows. Consumer sentiment appears to be rising, and record low mortgage rates coupled with favorable home prices are attracting homebuyers and investors who don't want to miss a historic opportunity, according to RE/MAX

"All the data is pointing to a very active spring and summer selling season this year, which is great news for a recovering housing market," said Margaret Kelly, CEO of RE/MAX, LLC, one of the country's largest real estate brokerage firms. "As sales numbers have trended higher for several months, we have been anticipating a turnaround in home prices, and it looks like it's finally starting."

The Median Sales Price of homes sold in February was $171,881. This price represents a 1.4 percent increase from January, and a 1.1 percent rise from the median price seen in February 2011. February is the first time in 18 months that the year-to-year home price has increased. Of the 53 metro areas included in the February survey, 24 experienced price increases from February 2011, including: Miami (20.5%), Orlando (15.8%), Phoenix (12.5%), Tampa (11.1%), St. Louis (9.8%) and Detroit (8.9%).

The average days on market for properties sold last February was 103, the same period for the month of January, and the same average seen in February 2011. Only two months in the last 12 months saw a days on market average below 90: July and September (88 days each). RE/MAX defines days on market as the number of days between first being listed in a Multiple Listing Service and when a sales contract is signed.

Another positive sign for the real estate market is the average inventory of homes for sale continues to drop. For example, last month in the 53 surveyed metro areas, inventory fell 0.8 percent from January and also dropped 22.4 percent from February 2011. Month-to month inventories have now fallen for 20 consecutive months.

Given the current rate of sales, and the size of the active inventory, the resulting "month's supply" of homes is 6.6 months, a drop from the 7.3 month supply seen in January, and significantly lower than the 9.3 month supply reported in February 2011. Month's supply is the number of months it would take to clear a market's active inventory at the current rate of sales, with six months worth of supply considered a balanced market between buyers and sellers.