2017 ended as a seller’s market, with rising home prices and low housing inventory greeting homebuyers across the nation.
According to the latest RE/MAX’s National Housing Report, home prices are hitting record highs in December 2017. The median home price rose 8.1 percent compared to December 2016 to $232,500. In fact, home prices accumulated from each month in 2017 were higher than the previous year’s prices. Sales as a whole dropped 3.3 percent year-over-year and 2.5 percent month-over-month.
“We see the median sales price of homes across the country rising every month, year-over-year, but the days on market and the supply of homes for sale hit record lows in December,” Adam Contos, co-CEO of RE/MAX, said in a press release. Based on the report, homes stayed on the market for an average of 57 days in December — as for 2017 as a whole, it took about 52.5 days for a home to sell.
As a result, the average number of home sales for December decreased about 2.5 percent compared to the previous month. Compared to the previous year, it decreased about 3.3 percent. These deficiencies were due in part to the number of available homes decreasing by 14 percent from the previous month’s inventory, making it increasingly difficult for homebuyers to find suitable properties.
When asked about his outlook for 2018’s market, Contos is keeping a close eye on the low inventory spreading across the country and how it’ll influence homebuyers.
“If inventory keeps getting tighter across the country it’ll be interesting to see how it might affect sales,” said Contos.