Another Month on the Upswing

The REAL Trends Housing Market Report for December 2014 shows that housing sales increased 8.7 percent from the same month a year ago. The annual rate of new and existing home sales for December 2014 was 6.395 million units up from a rate of 5.884 million in December 2013.



Housing prices rose an average of 1.8 percent from December 2013, continuing the slow decline of year over year price increases in housing sales. Price increases have now settled to a mid-single–digit growth rate for the past five months.

“The December housing data indicates that housing has a great deal of room to run. The unit sales increase was far stronger than anticipated while housing price increases were very moderate,” says Steve Murray, editor of the REAL Trends Housing Market Report. “Mortgage rates continue to be attractive and both employment and incomes are up from a year ago. The weakness in housing price increases bodes well for affordability in the months ahead particularly given the decline of mortgage rates. The more moderate weather of December 2014 versus the early winter of 2013 likely had some impact as well,” Murray added.

Housing unit sales for December 2014 increased 12.2 percent in the South, the best performance in all regions. Northeast sales were up 7.5 percent, the Western region saw unit sales increase by 6.2 percent, and the Midwestern region saw unit sales increase by 5.9 percent.

The average price of homes sold in December 2014 in the South region increased by 4.4 percent, the best result in the nation. The Western region saw average prices increase 3.4 percent, average prices in the Midwestern region were up 2.2 percent, and the Northeast had an average price decrease of 2.6 percent.

 

“As employment and incomes continue to improve housing sales should also continue to increase. All indicators at this time point to a continuation of the housing market rebound that started in the third quarter of 2011,” says Murray.”

REAL Trends December/ November Housing Market Report
(Versus same month a year ago)


  December
2014
December
2014
November
2014
November
2014
   Closed Sales
 Average Price
Closed Sales
 Average Price
 National  +8.7%  +1.8%  -0.4%  +5.6%
 Regional Report
     
 Northeast  +7.5%  -2.6%  -1.8%  +1.8%
 South  +12.2%  +4.4%  +1.9%  +7.4%
 Midwest  +5.9%  +2.2%  -5.2%  +7.3%
 West  +6.2%  +3.4%  +1.5%  +4.8%
 
                                             

 

This article originally appears in the February 2015 issue of the REAL Trends Newsletter and is reprinted with permission of REAL Trends Inc. Copyright 2015

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