National Housing Snapshot Of Existing Home Sales In December 2019

Dated: 01/23/2020

Views: 61


Existing-home sales ended 2019 with an increase in December, as a selling market remained strong and housing shortages continued at the start of 2020. The National Association of REALTORS® reported Wednesday that existing-home sales—which includes completed transactions for single-family homes, townhomes, condos, and co-ops—rose 3.6% in December compared to the previous month. Sales are up nearly 11% from a year ago.

Lawrence Yun, NAR’s chief economist, expects home buyer demand to remain strong in the new year. “We saw [2019] come to a close with the economy churning out 2.3 million jobs, mortgage rates below 4%, and housing starts ramp up to 1.6 million on an annual basis,” Yun says. “If these factors are sustained in 2020, we will see a notable pick up in home sales in 2020.”

“Home sellers are positioned well, but prospective buyers aren’t as fortunate,” Yun continued. “Low inventory remains a problem, with first-time buyers affected most.”


Here’s a closer look at key indicators from NAR’s latest home sales report:

  • Home prices: Existing-home prices for all housing types was $274,500 in December, up 7.8% compared to a year ago. “Price appreciation has rapidly accelerated, and areas that are relatively unaffordable or declining in affordability are starting to experience slower job growth,” said Yun. “The hope is for price appreciation to slow in line with wage growth, which is about 3%.”

  • Inventories: Unsold inventory is at a 3-month supply at the current sales pace. Unsold inventory has dropped for seven consecutive months annually. At the end of December, total housing inventory was at 1.4 million units, down 8.5% from a year ago.

  • Days on the market: Forty-three percent of homes sold in December 2019 were on the market for less than a month. On average, properties remained on the market for 41 days in December, down from 46 days a year ago.

  • First-time buyers: First-time buyers comprised 31% of sales in December, down slightly from 32% a year ago.

  • Investors: Individual investors and second-home buyers accounted for 17% of sales in December, up from 15% a year ago. Investors make up the biggest bulk of cash sales, which comprised 20% of transactions in December.

  • Distressed sales: Foreclosures and short sales represented just 2% of sales in December, unchanged from a year ago.


Image title


Russell and Melissa Banki

Helping our clients achieve all their real estate goals!

Best Priced Properties Team

www.bestpricedproperties.com

Blog author image

Melissa Banki | REALTOR® GRI CNE

REALTOR®, GRI, CNE - Hite Properties Best Priced Properties Team - The Woodlands TX Cell: 936-445-0216 Clients First! Treating the relationship with far more value than the transaction. We be....

Want to Advertise on this Site?

Latest Blog Posts

Happy New Homeowner In Katy TX

We met a few months ago and after talking I knew exactly the kind of homes that would be just perfect and we found the right one in Katy, TX! Not only did we get a fantastic home but at a

Read More

We Have Found Their Next Big Home In Willis TX

I sold this sweet family a new construction home back in 2012. Years later and after the addition of two precious kids they called me recently and asked me to find them a home.

Read More

We Are Under Contract In Conroe TX

After looking at both resale and new homes this sweet couple decided to purchase a beautiful new DR Horton in Conroe, TX! They also contracted on Valentine's Day! *Love*Melissa BankiBest Priced

Read More

We Are Under Contract In Porter TX

My clients needed extra space for their large family. They also wanted a larger lot on a cul-de-sac and that is what they have! We are now are under contract

Read More