Real Estate Information Archive

Existing-home sales rose again in December, closing out a record-breaking year in real estate amid a pandemic, a recession and historic unemployment levels.

According to the latest report from the National Association of Realtors, total existing-home sales in December rose 22.2% year over year. Looking at the entire year of 2020, sales totaled 5.64 million, up 5.6% from 2019, the highest level since before the Great Recession. 

“Home sales rose in December, and for 2020 as a whole, we saw sales perform at their highest levels since 2006, despite the pandemic,” said NAR Chief Economist Lawrence Yun in a press release. “What’s even better is that this momentum is likely to carry into the new year, with more buyers expected to enter the market.”

Although mortgage rates are projected to increase, Yun said they will continue to hover near record lows at around 3%. “Moreover, expect economic conditions to improve with additional stimulus forthcoming and vaccine distribution already underway,” he added.

Each of the four major regions of the country recorded double-digit year-over-year growth in December.

In the Northeast, existing-home sales rose 4.5% in December, a 27.4% increase from a year ago. The median price in the Northeast was $362,100, up 19% from December 2019.

Amid the demand, total housing inventory at the end of December fell 16.4% from November and 23% year over year.  Unsold inventory now sits at a 1.9-month supply, down from 2.3 months in November and 3.0-months a year ago.

“To their credit, home builders and construction companies have increased efforts to build, with housing starts hitting an annual rate of near 1.7 million in December, with more focus on single-family homes,” Yun said. “However, it will take vigorous new home construction in 2021 and in 2022 to adequately furnish the market to properly meet the demand.”

First-time buyers were responsible for 31% of sales in December, unchanged from the same time in 2019, but down from 32% in November 2020

For more information call Greater Boston Realty 617-347-5589.

The Greater Boston area is a wonderful place to live, so it comes as no surprise that the area is experiencing population growth year after year. Current residents are sticking around, and new Boston residents need places to live, so it’s logical that this increase in demand for homes is causing real estate prices to rise.

In fact, house prices in Greater Boston have been rising steadily over the last five years, with prices currently over 10% higher than they were at this point in 2016. And the trend is predicted to continue into 2018 – prices are still trending upward, with an expected climb of an additional 4-6% in the upcoming year. With listing prices currently high and getting higher in the Boston area, now is the perfect time to talk to a real estate professional about buying or selling a home. Here in West Roxbury, home prices are averaging right around $550k, and is expected to rise at a similar pace to the rest of the Boston Metro area.

And if you’re looking to buy or sell a home in the Boston area, make sure that you contact Greater Boston Realty at 617-469-4040. If you’re buying, one of our experienced real estate agents will listen to your needs and can show you homes in the area that will be perfect for your lifestyle. For sellers, we will put our marketing skills to work making sure to get top dollar for your home in this seller’s market. Don’t wait any longer to take advantage of the rising home prices – contact us today to schedule an appointment.