Housing supply hits new December low with homes selling fast

According to Remax, four new records were set for the property market during a historic December.

The number of properties for sale fell 17.9% month-over-month and 33% year-over-year, hitting a new December low that has not been hit since Remax’s National Housing Report began in 2007. National inventories decreased to 1.8 months in December from 2.1 in November and 3.9 months in the previous year. Of the 53 largest subway areas, Boise, Idaho continues to have the lowest inventory at 0.6 months. After a draw with Albuquerque, New Mexico, Salt Lake City followed with 0.7 months. A 6-month delivery defines the market equilibrium.

Homes were flying off the market at breakneck speed, with the average time to sale falling to its lowest ever in December. Homes were on the market for 37 days in the final month of 2020, up from 36 in November but down from 53 a year earlier. Omaha, Neb., Had the fewest days at 17, followed by Boise and Cincinnati, both at 19. Des Moines, Iowa, Miami, and New York had the slowest churn averaging 93, 84 and 71 market days, respectively.

Secondary and tertiary markets like Boise remain high on these lists due to the influx of consumers.

“It is only since July that we have had this onslaught of 500% more outsiders than we are used to, and there is no human way of how the builders can catch up. They were well behind 10,000 units since the last recession, ”said Suzi Boyle, loan specialist and branch manager at Castle & Cooke Mortgage in Boise, in an interview.

Prices continue to rise, driven by demand driven by historically low inventory levels and tiny mortgage rates. The median sales price reached $ 290,000 in October and was stable from November, while increasing 9.4% annually. Augusta, Maine led all markets with price growth of 26.6% as of December 2019. Boise followed in second place, up 23.8%, and Detroits in third place, up 19.2%. In the meantime, none of the 53 largest real estate markets has declined year on year.

“The coastal cities across California, Seattle and Portland have become so expensive that someone who makes $ 100,000 a year can no longer afford to live there. But Boise is close enough to the Pacific Northwest or an hour and a half flight from anywhere in California, ”Boyle said. “Many millennials couldn’t imagine ever realizing their dreams of great home ownership where they were. Combined with COVID, this has accelerated as people everywhere have the option to work from home, making it accessible to the middle class, young people and retirees. “

Closed sales increased 6.2% in December versus November and 21.9% year over year. Los Angeles saw all metro sales grow 42.7% annually, followed by 40.6% in New York and 39% in Hartford, Connecticut. December was typically a quieter month of sales, posting the fifth highest volume for 2020, two months in 2019.

“A lot of people want to own their home, not rent it, and the low interest rate environment helps them do that,” said Adam Contos, CEO of Remax, in the report. “We expect more salespeople to enter the market this year as they take advantage of the favorable conditions and greater mobility of remote work. This, along with the growth in construction, would help create more options for buyers, which would result in a potentially very big year of sales. “