The median home price in December was $209,500, according to the National Association of Realtors. This was 1.1% above the previous month and 6.0% above the previous year. This was the first time home prices increased month over month since June 2014.
The seasonally adjusted annualized rate of home sales increased year-over-year for a third consecutive month in December to reach 5.04 million homes. The pace of sales increased 2.4% above last month's sales pace, and was 3.5% above the same month of the previous year. The current accommodative interest rates will likely continue to support strong sales in the near future.
The number of homes available decreased 13.7% compared to the same month of the previous year, with 1.9 million homes available for sale in December. This translated to 4.4 months of supply, with the increase in the pace of sales creating a tightening in inventory conditions. Inventory will likely remain low during the cooler months of the year and then loosen as the weather warms.
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