Friday , January 15 2021

Current home sales are 3-year low as housing market stumps

Digits: The sale of the existing home ran at an annual rate of 4.99 million seasonally adjusted in December, said Tuesday by the National Association of Realtors. It was the lowest since November 2015. Month sales went down 6.4%, and 10.3% less than a year earlier.

what happened: Sales of previously owned homes had fallen in December, which included weak years for housing. For the year 2018, sales of the entire year have become 5.34 million, the worst year since 2015, when the newly-released housing recovery mortgage regulation was closed by a change.

MarketWatch predicts unanimity for sales speculation at 5.10 million at the pace of sales in December.

Big picture: Housing market was badly flooded last year. Now, to determine whether all eyes are on a decisive spring sale season, 2018 was the beginning or end of the cycle.

In spite of the decline in sales in December, the inventory also did. At the current pace of sale, it will take 3.7 months to complete the supply available under 3.9 months in November. Properties in December for 42 days in December, the average market for 46 days.

But the demand is declining: the average sale price of $ 253,600 in December was just 2.9% higher than a year ago. In December there was no increase in sales in the sector and for the first time buyers had raised 32% in all transactions in the month, which has no major way.

Read: Market Improvement or Medium Speed ​​Bump? Here's what real estate agents say about housing

What they say: In December, the domestic performance was 7.2% less than a year ago, indicating that the fifth decrease annually. The company's data comes from 1.2 million active listings, which subscribe to its services. "TimeMeM said in a statement that" compared to record numbers registered at the same time last year, buyers' traffic in all areas of the US is lower. "" This is probably a good news for buyers, who are seeing less competition in the market. "

Economists of Bank of America Merrill Lynch said, "In very near-term, we think we can see strong housing data for a short period of time."

"Reduction in mortgage rates is a very good time ahead of the spring sales season. We suspect that potential homeowners who may be afraid of the market during the falling rates in the fall can see them as a chance to jump back. Moreover, the labor market is currently in large quantity. With the beginning of employment, it is very strong and the pressure over the wages. "

Market reaction: 10-Year Treasury Note

TMUBMUSD10Y, -1.23%

, Which is usually a fixed-rate mortgage track, has spoken in recent weeks, which has helped homeowners become more affordable for borrowers.

Read: 3 exterior-the-box options for home buyers in the rigid housing market

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