December is normally one of the slowest months of the year but strong buyer demand across most segments of the market, buoyed by near-record low interest rates, continue to drive a healthy sales pace in the face of a new wave of COVID-19 infections and a softening jobs market.
Closed Sales increased 18.4 percent for existing homes and 18.1 percent for new homes. Pending Sales increased 31.8 percent for existing homes and 40.6 percent for new homes. Inventory decreased 52.4 percent for existing homes and 43.5 percent for new homes.
The Median Sales Price was up 11.8 percent to $225,000 for existing homes and 3.9 percent to $405,000 for new homes. Days on Market decreased 39.5 percent for existing homes and 27.2 percent for new homes. Supply decreased 55.6 percent for existing homes and 54.1 percent for new homes.
With low mortgage rates and strong buyer demand in most market segments, the housing market of early 2021 looks to continue the trends we saw in the second half of 2020. Low inventory and multiple offers on in-demand properties and market segments are likely to remain common while the market waits and hopes for a boost in new construction and a surge in home sellers to help provide more balance to the market.