December 2019
In 2019 home prices were up again in most markets. Buyer demand continues to be
strong but with tepid seller activity still in many locations, total sales are lower than
they would normally be in a more balanced market. While up from their recent lows
a few months ago, mortgage rates end the year close to three-quarters of a percent
lower than a year ago, helping to improve affordability and offset rising home prices.
New Listings were up 17.6 percent to 915. Pending Sales increased 19.5 percent to
876. Inventory grew 9.2 percent to 2,991 units.
Prices moved higher as Median Sales Price was up 7.6 percent to $189,900. Days
on Market decreased 6.6 percent to 57 days. Months Supply of Inventory was up
4.2 percent to 2.5 months, indicating that supply increased relative to demand.
With low mortgage rates, low unemployment, and continued wage growth, home
buyer activity is expected to remain healthy into the new year. New construction has
been on the rise in 2019 and is expected to continue into 2020, but many experts
note that the country is still not building enough new units to quench demand. It
remains to be seen whether existing homeowners will be enticed to sell by higher
home prices, which could finally bring the overall housing market into greater
balance.
Information courtesy of CMLS*
