December Download: Median Home Sale Prices Up, Inventory Likely to Improve in 2019
2018 Ends on a High Note with December Residential Home Prices Increasing by 2.8%
Real Estate Market Commentary for December 2018:
Home prices were consistently up again in most markets in 2018 but at reduced levels compared to recent years. High demand for few homes for sale fueled price increases, but evidence is mounting that inventory will finally improve in 2019. This may apply some downward pressure on prices for beleaguered home buyers. A fourth interest rate hike by the Federal Reserve in 2018 spooked the stock market to close out the year. The Fed has indicated that the number of rate increases in 2019 will be halved, which may be of little comfort to an already compressed consumer.
Unemployment rates remained remarkably low again in 2018, and wages continued to improve for many U.S. households. It is generally good for all parties involved in real estate transactions when wages grow, but the percentage of increase, on average, has not kept pace with home price increases. This created an affordability crux in the second half of 2018. Housing affordability will remain an important storyline in 2019.
Single-Family Real Estate Quick Comparisons - December 2018:
- Days on Market decreased by one (1) day overall in December from 45 in 2017 to 44 in 2018.
- There was an average of 5 showings per listing across the entire MLS during December of 2018, which was down only slightly from December 2017.
- 3.5% Residential and Condo On-Market listings are flagged as “lender mediated”. These listings include foreclosures and those marked as short sales. This percentage is down by 1.5% based on the recalculated percentage for December 2017, which is 5.0%. The M-O-M percentage increased by .3%, which was 3.2% in November.
December Five (5) Year All-MLS Median Sale Price Trend for Res & Condo Sales