Sales are on the up
Per a recent report shared by the National Association of Realtors (NAR), home sales at the beginning of the year were fairly steady overall in most areas with only notable declines seen in the West region. The total existing home sales of townhomes, single-families, condos and coops had dipped by just 1% overall due to the decline in sales in the West, however,the total sales are significantly up by 9.6% over this time last year.
Lawrence Yun, NAR’s chief economist, finds the outlook for 2020 home sales promising despite the drop in January. “Existing-home sales are off to a strong start at 5.46 million.” Yun said. “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales.”
Home prices have not slowed their growth with January making for the 95th straight month of increases. The median home price has gone up in all regions across the country and is up by 6.8% over January of last year.
Number of Days on Market
Houses were on the market for an average of 43 days during the month of January. This is an increase from the 41 days seen in December, but down from the 49 days in January of 2019. Forty two percent of properties that had sold in January were on the market for less than one month.
Housing inventory is at its lowest amount seen since the year 1999. Inventory levels were down by 10.7% from last year at this time with unsold inventory only being at a 3.1 month supply at the current sales pace.
On the flip side, the average loan rates were lower than last year at the same time. According to Freddie Mac, this January the average commitment rate for a 30 year loan was 3.62%. Last year this figure was 4.46%.