Home sales finished strong in December, helping make 2016 the very best year for U.S. home sales ever since the recession, according to the January 2017 RE/MAX National Housing Report, an analysis of MLS data from 53 metro areas. In fact, home sales in 2016 were the highest within the housing report’s eight-year history. Listed here are key points from the January report.
January 2017 Housing Report: 4 Points to Recognize
1. Homes are still selling fast
In December, homes spent an average of 62 days on the market. That’s the shortest time of any December in the report’s history.
2. Prices are rising
The median sales price of a home sold in December was $216,000. Which had been nearly 5 percent higher than the median sales price in December 2015.
3. Inventory will continue to shrink
The inventory of homes for sale dropped nearly 18% between last December and December 2015, continuing a year-long streak of double-digit declines. Considering the current pace of home sales, the inventory equals 4.2 months of sales. To put that in context, a supply of six months is considered a balanced market between buyers and sellers. In December, 47 of the 53 metro areas surveyed reported a supply of under 6.0 months. That’s usually considered a seller’s market.
4. Slightly fewer transactions occurred
The overall average number of home sales fell 1.8% compared to December 2015. However, almost half of the 53 metro areas showed a boost in sales year-over-year. Growth in markets across the country was in the double digits. Home sales in the Wilmington/Dover, Delaware market increased by about 21%. Sales in Honolulu, Hawaii grew by 19.7 % and sales in Augusta, Maine, rose by about 16%.
What’s the upshot of all research? “Much like 2015, we saw a mostly healthy housing market in 2016 that posted steady growth in sales and prices,” said Dave Liniger, RE/MAX CEO, chairman of the board and co-founder. “We’re back to per-recession levels in many markets, with 2017 forecast to be another solid year. We’ll have to wait and see what impact rising interest rates will have.” In December, the Federal Reserve raised interest rates for only the second time since 2006.
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Dig into the details of the January 2017 RE/MAX National Housing Report in the info-graphic below. You can also download a copy.
Capped off by way of a strong December, 2016 was the very best year for U.S. home sales ever since the recession, based on the January 2017 RE/MAX National Housing Report.
