Home prices rose 8.8 percent in December from a year ago, the biggest increase in 22 months. Sales were strong too, up 7.7 percent despite a lack of supply that’s challenging homebuyers. There were fewer homes for sale in December than in any month of 2015.
Typically, home prices slow along with sales in December. Last month, however, prices spiked due to a dearth of properties on the market. In December, there was a three-month supply of homes for sale, a steep slide from the 4.1 months reported in November. The lack of inventory supported a fast market, where the typical home sold in 41 days, a week faster than a year ago.
“In early December, I had five new listings, all of which received offers within about the first week,” said Christy Alwin, a Redfin agent in Naperville, Ill. “Four had multiple offers. In the end, they were all under contract in less than 18 days. Inventory is low and buyers pounce on new listings as soon as they are available.”
Sales rose 7.7 percent year-over-year, compared to 2.8 percent the previous month, continuing a recent pattern of sales rebounding in December from November. In 2014, December sales grew 9.7 percent after dropping 0.7 percent in November. This seasonal trend casts doubt on the theory that a new mortgage rule, known as TRID or Know Before You Owe, had a significant impact on November or December sales volume.
In total, there were nearly 2 million homes sold (1,969,814 to be exact) in 68 markets tracked by Redfin in 2015, leading to a strong 9.6 percent increase from 2014.
Prices
Sales
Competition and Speed
Homes For Sale
You can download data from the November Market Tracker in an Excel Spreadsheet.
For additional local analysis, see: Chicago | Los Angeles | San Francisco | Washington, D.C.
