RE/MAX: ‘Record-Setting December for Housing Market
RE/MAX, Denver, said December home sales increased more than 20% year-over-year amid record-low housing inventories.
The company’s monthly National Housing Report said December home sales increased by 21.9%, defying past seasonal slowdowns. The month also set multiple December report records, including average days on market (37, more than two weeks less than the 53 days a year ago); median sales price ($290,000, up 9.4% year over year); and months’ supply (1.8 months, less than half of the 3.9 months a year ago).
“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,” said RE/MAX Holdings CEO Adam Contos. “And when you look at the entire last half of the year, you see sky-high demand for housing across the country. “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.
Contos added 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,” he said. “That, along with gains in construction, would help create more options for buyers, leading to what could be a very big year for sales.”
After the pandemic’s initial impact on the housing market last spring and early summer, 2020 ended up seeing the following report highlights since the first report in 2008:
The report said July August, September, October and December 2020 make up 5 of the top 10 months of sales. August through December became the five lowest months of inventory in report history, with each month’s inventory lower than the previous month’s and seven of the top 10 months with the lowest inventory occurring in 2020.
Additionally, the report September through December comprise the four months with the fastest average time for a listing to sell; and August, November and December tied with the highest mark for median sales price in report history.
Of the 53 metro areas surveyed in December, the overall average number of home sales rose by 6.2% compared to November. Coastal metros saw an uptick in their local markets as year-over-year sales percentage increases were led by Los Angeles at 42.7%, New York at 40.6%, and Hartford, Conn. at 39%.
