Monthly Market Indicators
For 2020, The National Association of REALTORS® Chief Economist Lawrence Yun sees good news for home prices. “National median home price growth is in no danger of falling due to inventory shortages and will rise by 4%,” the long-term NAR economist predicts. He is also expecting the new-home construction market sales to increase 10%. Yun and others would like to see home builders bring more affordable units to market to help ease shortages and slow price gains in that segment.
New Listings in Harrisburg decreased 18.2 percent to 18. Closed Sales stayed the same at 8. Inventory levels fell 6.0 percent to 47 units.
Prices continued to gain traction. The Median Sales Price increased 11.0 percent to $209,450. Days on Market was up 38.2 percent to 72 days. Sellers were encouraged as Months Supply of Homes for Sale was down 13.7 percent to 3.1 months.
We start off the year with continued low interest rates, low unemployment, and rising rents nationally. These factors should encourage healthy buyer demand and sets us up for a strong start to the 2020 housing market and a lot of optimism for the coming spring market.
Housing Supply Overview
As the cost of renting continues to increase, consumers have more incentive to lock in their housing costs by purchasing a home. The latest CoreLogic Single-Family Rent Index report released this month saw the cost of renting single-family homes, including condos, up 3% in November 2019 versus November 2018. According to CoreLogic’s data, single-family rents started climbing in 2010 and have stabilized around an annualized rate of 3% since early 2019.
The overall Average Sales Price was up 16.8 percent to $221,375.
Market-wide, inventory levels were down 6.0 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 11.1 percent. That amounts to 2.9 months supply for Single-Family homes and 3.5 months supply for Condos.