2016 HOUSING DATA

2016 was the best year for existing home sales in the past decade, according to the National Association of Realtors®.

Previously, 2015 had the best year in the past decade for existing home sales with 5.25 million, but 2016 saw sales of 5.45 million, the highest it has been since sales hit 6.48 million in 2006. Sales slipped a bit in December 2016, but still saw an increase of .7 percent from December 2015.

The median existing-home price in December 2016 was $232,200, an increase of 4 percent from December 2015’s average of $223,200.

“Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market,” he said. “However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December,” said Lawrence Yun, NAR’s chief economist. “While a lack of listings and fast rising home prices was a headwind all year, the surge in rates since early November ultimately caught some prospective buyers off guard and dimmed their appetite or ability to buy a home as 2016 came to an end.”

Housing inventory continues to remain an issue. In December, inventory fell to 1.65 million, a decrease of 10.8 percent from November,and the lowest NAR has seen since it began the reports in 1999. Properties were on the market for an average of 52 days, representing an increase of nine days compared to November, but a decrease of six days from December 2015.

Throughout 2016, nearly one-third of buyers were first-time homebuyers, a number that remained consistent throughout the past two years.

Region-wise, in the Northeast, the median price was $245,900 in December 2016, a 3.8 percent decrease from December 2015. Additionally, sales slipped 6.2 percent in December to an annual rate of 760,000, an increase of 2.7 percent, compared to 2015.