With more than a 10% increase in home sales year-over-year, the new decade started out strong despite very low inventory, according to the January 2020 RE/MAX National Housing Report. In the nearly 12-year history of the report, three January records were set or tied last month: fewest Months Supply of Inventory at 3.1, fewest Days on Market at 59 and highest Median Sales Price at $256,000.
“Strong buyer demand continues to be the defining theme in the housing market,” said Adam Contos, CEO of RE/MAX Holdings, Inc. “January sales were encouraging, and were likely pushed in part by millennials coming into the market. It’s a massive group of people, with many of them forming households and looking to buy their first homes. Affordability and limited supply are still constraints, but overall, housing is in a much better place than it was a year ago.”
Here are some highlights of the latest data found in the RE/MAX National Housing Report:
1. Transactions are up. Inventory is down.
In line with the pace set by December home sales, the year started out strong with a 10.5% increase in home sales compared to January 2019. Leading the year-over-year sales percentage increase were Los Angeles, CA at +31.9%, Burlington, VT at +28.7%, and New Orleans, LA at +22.5%. Inventory remains constricted, with the number of homes for sale in January 2020 down 5.0% from December 2019 and down 15.6% from January 2019. A six months supply indicates a market balanced equally between buyers and sellers.
2. Sales prices continue to accelerate.
January’s Median Sales Price of $256,000 – though 3.4% below December – was 8.9% higher than January 2019 and extended the string of year-over-year price increases to 13 months. Thirteen metro areas increased year-over-year by double-digit percentages, with the largest increases seen in Trenton, NJ at +24.4%, Birmingham, AL at +18.6%, and Boise, ID at +16.6%.
3. Days on market remained flat.
The average Days on Market, the number of days between when a home is first listed in an MLS and a sales contract is signed, for homes sold in January 2020 was 59, up six days from the average in December 2019, and equivalent to the average in January 2019.
Ready to make a move? Contact a RE/MAX agent today.
Written by Samantha Rotbart
