DENVER, Jan. 19, 2021 /PRNewswire/ -- December home
sales increased 6.2% over November and 21.9% year-over-year,
capping a record-breaking second half of 2020 that set new overall
monthly benchmarks for most sales, highest price, lowest inventory
and quickest closings.
Although December is typically a month with fewer sales,
December 2020 ranked 5th
in highest number of home sales for the year – and its sales
exceeded all but two months of 2019.
"The very strong sales total in December – over 20% higher than
a year earlier – reflects just how frenzied the market was as we
entered 2021. And when you look at the entire last half of the
year, you see sky-high demand for housing across the country," said
Adam Contos, CEO of RE/MAX
Holdings, Inc. "Buyers are dismissing the potential constraints
of rising prices and limited inventory to boldly move ahead with
their plans to purchase and own a home. We think that says a lot
about the lasting appeal of homeownership.
"Many people want to own their home, not rent, and the low
interest rate environment is helping them do it. We expect to see
more sellers enter the market this year as they take advantage of
the favorable conditions and the greater mobility of working
remotely. That, along with gains in construction, would help create
more options for buyers, leading to what could be a very big year
for sales."
Down 17.9% from November 2020 and
33.0% from December 2019,
December 2020 established a record
low for inventory in the 13-year history of the report. It also set
multiple new December records:
- Average Days on Market of 37, over two weeks less than the 53
days a year ago.
- Median Sales Price of $290,000 –
up 9.4% year-over-year.
- Months of Supply of Inventory at 1.8, which was less than half
of December 2019's 3.9.
After the pandemic's initial impact on the housing market last
spring and early summer, 2020 ultimately posted a number of
highlights in the report's history:
- Home Sales: 5 of the top 10 months of sales since 2008
occurred in 2020 – July (the new record), August, September,
October and December
- Inventory: 7 of the top 10 months with the lowest
inventory; August through December became the five lowest months in
report history, with each month's inventory lower than the previous
month's
- Days on Market: 5 of the top 10 months with the
report's fewest Days on Market; September through December comprise
the four months with the fastest average time for listing to
sale
- Median Sales Price: 9 of the top 10 months with the
highest Median Sales Price; at $290,000, August, November and December tied with
the highest mark in report history
Highlights and the local markets leading various metrics for
December 2020 include:
Closed Transactions
Of the 53 metro areas
surveyed in December 2020, the
overall average number of home sales is up 6.2% compared to
November 2020, and up 21.9% compared
to December 2019. Leading the year-over-year sales percentage
increase were Los Angeles, CA at
+42.7%, New York, NY at +40.6%,
and Hartford, CT at +39.0%.
Median Sales Price – Median of 53 metro median
prices
In December 2020, the
median of all 53 metro Median Sales Prices was $290,000, flat from November 2020, and up 9.4% from December 2019. None of the metro areas saw a
year-over-year decrease in Median Sales Price. Thirty-six metro
areas increased year-over-year by double-digit percentages, led by
Augusta, ME at +26.6%,
Boise, ID at +23.8%, and
Detroit, MI at +19.2%.
Days on Market – Average of 53 metro areas
The average
Days on Market for homes sold in December
2020 was 37, up one day from the average in November 2020 and down 16 days from the average
in December 2019. The metro areas
with the lowest Days on Market were Omaha, NE at 17, and a two-way tie between
Boise, ID and Cincinnati, OH at 19. The highest Days on
Market averages were in Des Moines,
IA at 93, Miami, FL at 84,
and New York, NY at 71. Days on
Market is the number of days between when a home is first listed in
an MLS and a sales contract is signed.
Months Supply of Inventory – Average of 53 metro
areas
The number of homes for sale in December 2020 was down 17.9% from November 2020 and down 33.0% from December 2019. Based on the rate of home sales in
December 2020, the Months Supply of
Inventory decreased to 1.8 compared to 2.1 in November 2020 and decreased compared to 3.9 in
December 2019. A six months supply
indicates a market balanced equally between buyers and sellers. In
December 2020, of the 53 metro areas
surveyed, two metro areas, Miami,
FL and Indianapolis, IN
reported a months supply at or over six, which is typically
considered a buyer's market. The markets with the lowest Months
Supply of Inventory were a two-way tie between Albuquerque, NM and Boise, ID at 0.6, and Salt Lake City, UT at 0.7.
For specific data in this report or to request an interview,
please contact mediarelations@remax.com.
About the RE/MAX Network
As one of the leading global
real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX
Holdings (NYSE: RMAX) with over 135,000 agents in more than 110
countries and territories. Nobody in the world sells more real
estate than RE/MAX, as measured by residential transaction sides.
RE/MAX was founded in 1973 by David and
Gail Liniger, with an innovative, entrepreneurial culture
affording its agents and franchisees the flexibility to operate
their businesses with great independence. RE/MAX agents have lived,
worked and served in their local communities for decades, raising
millions of dollars every year for Children's Miracle Network
Hospitals® and other charities. To learn more about
RE/MAX, to search home listings or find an agent in your community,
please visit www.remax.com. For the latest news about RE/MAX,
please visit news.remax.com.
Description
The RE/MAX National Housing Report is
distributed each month on or about the 15th. The first
Report was distributed in August 2008. The Report is based on
MLS data in approximately 53 metropolitan areas, includes all
residential property types, and is not annualized. For maximum
representation, many of the largest metro areas in the country are
represented, and an attempt is made to include at least one metro
from each state. Metro area definitions include the specific
counties established by the U.S. Government's Office of Management
and Budget, with some exceptions.
Definitions
Transactions are the total number of
closed residential transactions during the given month. Months
Supply of Inventory is the total number of residential properties
listed for sale at the end of the month (current inventory) divided
by the number of sales contracts signed (pended) during the
month. Where "pended" data is unavailable, this calculation is
made using closed transactions. Days on Market is the number of
days that pass from the time a property is listed until the
property goes under contract for all residential properties sold
during the month. Median Sales Price is the median of the
median sales prices in each of the metro areas included in the
survey.
MLS data is provided by contracted data aggregators, RE/MAX
brokerages and regional offices. While MLS data is believed to be
accurate, it cannot be guaranteed. MLS data is constantly
being updated, making any analysis a snapshot at a particular time.
Every month the RE/MAX National Housing Report re-calculates the
previous period's data to ensure accuracy over time. All raw data
remains the intellectual property of each local MLS
organization.
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SOURCE RE/MAX, LLC