In 2019 home prices were up again in most markets. Buyer demand continues to be strong but with tepid seller activity still in many locations, total sales are lower than they would normally be in a more balanced market. While up from their recent lows a few months ago, mortgage rates end the year close to three-quarters of a percent lower than a year ago, helping to improve affordability and offset rising home prices.
New Listings increased 23.5 percent for Single Family homes and 32.4 percent for Townhouse-Condo homes. Pending Sales increased 10.1 percent for Single Family homes but decreased 7.1 percent for Townhouse-Condo homes. Inventory decreased 1.6 percent for Single Family homes and 19.3 percent for Townhouse-Condo Homes.
With low mortgage rates, low unemployment, and continued wage growth, home buyer activity is expected to remain healthy into the new year. New construction has been on the rise in 2019 and is expected to continue into 2020, but many experts note that the country is still not building enough new units to quench demand. It remains to be seen whether existing homeowners will be enticed to sell by higher home prices, which could finally bring the overall housing market into greater balance.
