EXISTING HOME SALES FLAT FOR 2019

On a full-year basis, total existing-home sales* ended at 5.34 million, the same level as in 2018, even though existing-home sales grew in December, according to the National Association of Realtors®.  Sales in the South were up 2.2%, offset by declines in the West of 1.8%, declines in the Midwest 1.6%, while the Northeast remained unchanged.

The median existing-home price in December was $274,500, up 7.8% from December 2018. Prices rose in every region. The price increase marks 94 straight months of year-over-year gains.

Lawrence Yun, NAR’s chief economist, said home sales fluctuated a great deal last year. “I view 2019 as a neutral year for housing in terms of sales,” Yun said. “Home sellers are positioned well, but prospective buyers aren’t as fortunate. Low inventory remains a problem.”

Total housing inventory at the end of December totaled 1.4 million units, down 8.5% from one year ago (1.5 million). The drop in inventory accounts for most of the increase in prices as demand increases and supply decreases, prices go up.  There is always a tipping point where the pricing growth may hit a wall and sellers need to be realistic about this when pricing their home for sale this year.

First-time buyers were responsible for 31% of sales in December.  Individual investors or second-home buyers, who account for many cash sales, purchased 17% of homes in December 2019, up 15% year-over-year. All-cash sales were down in December, 20% versus 22% in December 2018.

Yun said conditions for buying are favorable and will likely continue in 2020. “We saw the year come to a close with the economy churning out 2.3 million jobs, mortgage rates below 4% and housing starts ramp up to 1.6 million on an annual basis,” he said. “If these factors are sustained in 2020, we will see a notable pickup in home sales in 2020.” 

On the North Fork, there are very few new homes being built and existing home sales account for most of our sales. With lower inventories, sellers would be smart to list sooner and catch the early-bird buyers!

 *Existing home sales excludes new construction.

 Source: National Association of Realtors, 2019 Existing Home Sales, January 22, 2020,