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NOT READY TO
SELL … YET
Home prices rose 6.8 percent in December
2017 as inventory declined 14.5 percent,
according to a report on December home
prices and sales released by brokerage firm
Redfin. For the full year of 2017, home sales
increased 1.7 percent over 2016 while prices
rose 7 percent on a median sales price of
$284,500, the report said.
In 2018, tight inventory is expected to be
the biggest market driver. "Like last year, low
inventory will be the biggest driver of the 2018
real estate market," said Nela Richardson,
Chief Economist at Redfin. "We anticipate
a continuation of the same trends we've been
seeing for the past few years. Price growth
will remain strong as many homeowners will
remain deterred from selling due to the low
mortgage rates they've locked in and the high
price of their would-be move-up home."
e report indicated that home sales
ended a year of fluctuating sales growth
with a decrease of 2.8 percent in December.
e number of homes for sale declined 14.5
percent compared to a year ago, marking 27
consecutive months of inventory decline. e
typical home that sold in December found a
buyer after 49 days on the market, compared
to 54 days in 2016.
e number of newly listed homes for sale
decreased 3 percent in December, the report
said. Additionally, with just 2.6 months of
supply in December, the market was far below
the six months of supply that represent balance
between buyers and sellers.
San Jose lead the cities that faced the most
acute shortage of inventory with only 0.5
months of supply in December. Home prices
in this city climbed 32 percent in December
compared to last year as supply sunk to an
all-time low.
