MNI DATA IMPACT: US Dec Existing Home Sales Up 3.6% To 5.54Mln

By Ryan Hauser

     WASHINGTON (MNI) - Existing home sales jumped 3.6% in December to 5.54

million annualized pace and are up 10.8% from one year ago, according to data

released Wednesday by the National Association of Realtors. The increase was the

highest since February 2018.

     However, for all of 2019, existing home sales totaled 5.34 million,

unchanged from 2018. "Home sellers are positioned well, but prospective buyers

aren't as fortunate. Low inventory remains a problem, with first-time buyers

affected the most," NAR chief economist Lawrence Yun told reporters. 

     The median existing-home price for all home types in December came in at

$274,500, a 7.8% year-over-year increase marking 94 straight months of growth,

according to the NAR. This was the strongest year-over-year growth since January

2019. "Price appreciation has rapidly accelerated, and areas that are relatively

unaffordable or declining in affordability are starting to experience slower job

growth," Yun said.

     Given the sharp price increases, the NAR will be monitoring the internal

migration of Americans moving from less-affordable to more-affordable living

areas, something Yun said was "worth watching" in 2020.

     Regionally, month-over-month, seasonally adjusted sales increased in the

the Northeast (5.7%), the South (5.4%), and the West (4.6%) while declining in

the Midwest (-1.5%). However, the Midwest region did see the strongest regional

price gain of $208,500, a 9.2% year-over-year jump.

     Despite the decline in sales last month, Yun said the Midwest is still "the

most affordable region of the country," though its housing market is overall

"more dependent on jobs rather than interest rates," and job creation was

relatively lighter in this area.

     The following are the other key points from the report:

     -Distress sales comprise only 2% of transactions in the latest data, Yun

said. Conditions for buying are favorable and should continue into 2020.

     -Single-family home sales increased by 2.7% in December coming in at 4.92

million, up 10.6% from a year ago.

     -Condominium and co-op sales "soared" by 10.7% month-over-month, which Yun

said may be due to a shift in FHA rules.

     -Yun said individual investors or second-home buyers are "stepping up

modestly," comprising 17% of total sales compared in December compared to 15%

one year ago. All-cash sales made up 20% of December transactions, unchanged

from November.

--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

[TOPICS: MAUDR$,MAUDS$,M$U$$$,MT$$$$]