In 2019, a strong economy and low interest rates fueled the housing market here in the Holy City and across the nation. With increased wages and unemployment at a 50-year low, buyer activity was strong, but inventory issues plagued the market. Down 17.1% at year end, inventory is tight and buyers are turning to off market properties to find what they need.
New construction builder activity grew in 2019 versus levels seen in 2018, though the total units being built remain lower than needed for long-term supply. 18,576 transactions were completed last year, up 2.1% from 2018, for an average price of $365,989 (+1.6%). Homes are staying on market for an average of 55 days, up from 52 days in 2018. Sellers are receiving an average of 96.2% of original list price, proving it is still a great time to sell your home.
As we look into 2020, we see continued low mortgage rates and a healthy economy giving a great start to housing in the new year. With a presidential election year upon us, we sometimes see a softening of activity that may temper the market in the second half of the year. Though what’s ahead is always uncertain, it is encouraging to see continued low unemployment, wage increases, and low interest rates paving the way for a healthy market for sellers and buyers alike.