{"id":67561,"date":"2020-01-17T04:55:03","date_gmt":"2020-01-17T12:55:03","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=67561"},"modified":"2020-10-06T12:59:37","modified_gmt":"2020-10-06T19:59:37","slug":"housing-market-news-december-2019","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/housing-market-news-december-2019\/","title":{"rendered":"US Home Prices Up 7% in December"},"content":{"rendered":"

A record shortage of homes for sale drove prices up on a monthly and annual basis.<\/h2>\n

U.S. home-sale prices<\/a> increased 6.9% year over year in December to a median of $312,500 across the 217 metros Redfin tracks. Home prices were also up 1.1% month over month on a seasonally-adjusted basis, the largest increase since February 2018.
\n\u201cLow mortgage rates and a strong economy fueled homebuyer demand in December, which boosted both home sales and prices,\u201d said Redfin chief economist Daryl Fairweather<\/a>. \u201cPrices heated up in West Coast metros like Seattle<\/a> and Los Angeles<\/a>, which indicates the slowdown of 2019 has officially ended in these markets.\u201d
\nPrices continued to increase the fastest in affordable metro areas in December. Among the 20 metro areas with the largest year-over-year price increases, 16 were below the national median, led in December by Memphis<\/a> (median price $190,000, up 15.9%), Camden, NJ<\/a> ($195,000, +14.7%) and Cincinnati<\/a> ($187,000, +14.4%).
\nFor the more expensive metro areas, a boost in the loan limits for mortgages<\/a> backed by FHA, VA, Fannie Mae and Freddie Mac that takes effect in January could impact affordability and put upward pressure on home prices in the sweet spot of the limit increases. The new limit for most of the country is $510,400, up from $484,350 in 2019, while the limit in high-cost areas has increased to $765,600, up from $726,525 in 2019.
\nOf the 85 largest metro areas Redfin tracks, only two saw a year-over-year decline in the median sale price: In <\/a>New York<\/a>, home prices were down 2.4%\u2014possibly as a result of the increase in New York City\u2019s \u201cmansion tax\u201d on homes priced above $1 million. In San Francisco<\/a>, they fell 1.7%.
\n\"Year-Over-Year<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
Market Summary<\/th>\nDecember 2019<\/th>\nMonth-Over-Month<\/th>\nYear-Over-Year<\/th>\n<\/tr>\n<\/thead>\n
Median sale price<\/td>\n$312,500<\/td>\n0.5%<\/td>\n6.9%<\/td>\n<\/tr>\n
Homes sold, seasonally-adjusted<\/td>\n276,800<\/td>\n1.0%<\/td>\n6.8%<\/td>\n<\/tr>\n
New listings, seasonally-adjusted<\/td>\n304,600<\/td>\n-1.3%<\/td>\n-5.1%<\/td>\n<\/tr>\n
All Homes for sale<\/td>\n646,800<\/td>\n-14.6%<\/td>\n-14.9%<\/td>\n<\/tr>\n
Median days on market<\/td>\n50<\/td>\n5<\/td>\n-2<\/td>\n<\/tr>\n
Months of supply<\/td>\n2.6<\/td>\n-0.5<\/td>\n-0.8<\/td>\n<\/tr>\n
Sold above list<\/td>\n19.1%<\/td>\n-1.7 pts\u2020<\/sup><\/td>\n0.6 pts\u2020<\/sup><\/td>\n<\/tr>\n
Median Off-Market Redfin Estimate<\/td>\n$283,400<\/td>\n-3.6%<\/td>\n3.6%<\/td>\n<\/tr>\n
Average Sale-to-list<\/td>\n97.4%<\/td>\n-0.5 pts\u2020<\/sup><\/td>\n0.3 pts\u2020<\/sup><\/td>\n<\/tr>\n<\/table>\n

\u2020 – \u201cpts\u201d = percentage point change<\/span>
\nNationwide, home sales increased 6.8% year over year in December, the fifth consecutive month of increases, and were up 1.0% from November on a seasonally-adjusted basis.
\nThe markets with the biggest increases in home sales from a year ago were Anaheim, CA<\/a> (37.7%), North Port, FL<\/a> (35.8%) and New Haven, CT<\/a> (23.0%).
\n\"Home
\nThe supply of homes for sale fell 14.9% year over year, the biggest decline since March 2013 and the sixth straight month of declines. There were fewer homes for sale last month than any time since at least December 2012. Just one of the 85 largest metros tracked by Redfin posted a year-over-year increase in inventory: Knoxville, TN<\/a> (5.3%).
\nCompared to a year ago, the biggest declines in the number of homes for sale were in Salt Lake City<\/a> (-54.7%), Tacoma, WA<\/a> (-44.3%) and San Diego, CA<\/a> (-40.3%).
\n\"Home
\nThe rapid reduction in supply can be attributed both to the increase in home sales and to a decline in new listings, which fell 5.1% in December from a year earlier\u2014the largest drop on record since our data began in 2012. \u201cMany homeowners have refinanced their mortgages to take advantage of low interest rates and therefore feel committed to staying put,\u201d continued Fairweather. \u201cThe lack of homes for sale is going to fuel competition and price growth in 2020.\u201d
\n\"Change
\nSeasonally-adjusted new listings in December fell the most from a year earlier in Salt Lake City<\/a> (-50.4%), followed by Allentown, PA<\/a> (-39.3%) and Kansas City, MO<\/a> (-38.9%).
\nHomes sold in December spent two fewer days on market compared to the prior year. In December, the typical home went under contract in 50 days, compared to 52 days in December 2018.
\nThe share of homes sold above list price increased year over year, coming in at 19.1% in December compared to 17.3% a year earlier.
\n\"Homes
\n\"Share<\/p>\n

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Other December Highlights<\/strong><\/h3>\n

Competition<\/strong><\/p>\n