The year closed out on a high note, as December home sales posted the largest year-over-year gain of 2019, according to the December 2019 RE/MAX National Housing Report. The end of the decade saw an increase in homebuyer demand but a shortage of homes for sale – on trend with the supply/demand imbalance of recent years.
“It was good to see the year-over-year spike in December home sales, indicating robust homebuyer interest,” said Adam Contos, CEO of RE/MAX Holdings, Inc. “The strong December capped a solid second half of 2019, with year-over-year sales increases in four of the final six months. The gains were largely attributable to low interest rates and high demand, and with those factors still in place, we expect sales to continue at a solid pace into the first part of this year.”
Here are some highlights of the latest data found in the RE/MAX National Housing Report:
1. Home sales went up
December home sales ended the year – and decade – strong with a 4.1% increase compared to November 2019 and a 13.5% increase year-over-year. Leading the year-over-year sales percentage increase were Birmingham, AL at +34.3%, Burlington, VT at +26.7%, and Los Angeles, CA at +26.2%.
2. Home values continued to rise
In December 2019, the Median Sales Price of $266,000 was 11.1% higher than December 2018 and was the highest year-over-year increase for any month of 2019. Only one metro area, Burlington, VT at -3.3%, saw a year-over-year decrease in Median Sales Price. Fourteen metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Birmingham, AL at +19.9%, Trenton, NJ at +19.1%, and Honolulu, HI at +15.3%.
3. The number of homes for sale declined
The number of homes for sale in December 2019 was down 13.7% from November 2019 and down 14.5% from December 2018. Based on the rate of home sales in December 2019, the Months Supply of Inventory decreased to 3.3 compared to 3.5 in November 2019, and decreased compared to 4.8 in December 2018. A six months supply indicates a market balanced equally between buyers and sellers.
Sellers, are you ready to put your home on the market? Contact a RE/MAX agent today.
Written by Samantha Rotbart
