For 2020, The National Association of REALTORS® Chief Economist Lawrence Yun sees good news for home prices. “National median home price growth is in no danger of falling due to inventory shortages and will rise by 4 percent,” the long-term NAR economist predicts. He is also expecting the new-home construction market sales to increase 10 percent. Yun and others would like to see home builders bring more affordable units to market to help ease shortages and slow price gains in that segment.
New listings increased 0.3 percent for residential homes and 1.6 percent for townhouse/condo homes. Pending sales decreased 21.3 percent for residential homes and 18.4 percent for townhouse/condo homes. Inventory decreased 11.0 percent for residential homes and 0.1 percent for townhouse/condo homes.
Median sales price increased 5.7 percent to $198,700 for residential homes and 4.3 percent to $170,000 for townhouse/condo homes. Days on market increased 3.7 percent for residential homes and 17.9 percent for townhouse/condo homes. Months supply of inventory decreased 9.5 percent for residential homes but increased 7.4 percent for townhouse/condo homes.
We start off the year with continued low interest rates, low unemployment, and rising rents nationally. These factors should encourage healthy buyer demand and sets us up for a strong start to the 2020 housing market and a lot of optimism for the coming spring market.