Redfin Report: Home Prices Jump in December, Posting Biggest Increase in Almost Two Years
Home prices rose higher in December than they did in the 22 months prior, posting an 8.8 percent year-over-year increase, according to Redfin (www.redfin.com), the next-generation real estate brokerage. There were also fewer homes for sale in December than in any other month of 2015 (down 5.4 percent year over year), but despite this lack of supply, sales were up 7.7 percent.
Home prices dodged the typical December slow-down and spiked last month 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 and far from the six months that signals a balanced market. The lack of inventory supported a fast market, where the typical home sold in 41 days, a week faster than a year ago.
The 7.7 percent year-over-year increase in sales, compared to 2.8 percent the previous month, continued 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 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 two 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.
Local Market Insights in December
- The median sale price in Hudson Valley, NY, climbed 15.1% from November, posting the biggest gains of any market. Year over year, prices were up 6.3%.
- Sales rebounded across the country in December from November, with 64 of 68 markets posting double-digit, month-over-month increases. San Jose (71%), San Francisco (29.7%) and Nashville (20.2%) had the biggest increases compared to last year.
- Denver and Oakland tied for the fastest markets, with half of all new listings selling in 18 days or less, followed closely by Seattle, where the typical home sold in less than three weeks.
- New listings surged at year end in Miami (58.3%) and Fort Lauderdale (26.9%), where sellers see demand from vacation homebuyers. New for-sale listings were up 80.4% in Miami from a year ago; sellers put more properties on the market in December than in any other month of 2015. Inventory in Miami is up 11.3% year over year.
To read the full report, complete with data and charts, please visit the following link: https://www.redfin.com/blog/2016/01/december-national-housing-market-tracker.html.
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Redfin (www.redfin.com) is a next-generation real estate brokerage that represents people buying and selling homes. Founded by technologists, Redfin employs a team of experienced, full-service real estate agents who are advocates, not salespeople, earning customer-satisfaction bonuses, not just commissions. Redfin.com features all the broker-listed homes for sale, as well as for-sale-by-owner properties that don't pay brokers a commission. Redfin also offers online tools, built by its own software engineers, that make the entire process of buying or selling a home easier and more fun. The company serves major markets across the U.S. and has closed nearly $20 billion in home sales. In 2012, Redfin was named one of The DIGITAL 100: World's Most Valuable Private Tech Companies by Business Insider.
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