U.S. home-sale prices increased nearly 7 percent year-over- year in December to a median of $312,500, according to a report from Redfin.
The company said home prices in December also were up 1.1 percent month-over-month on a seasonally-adjusted basis, the largest increase since February 2018.
“Low mortgage rates and a strong economy fueled homebuyer demand in December, which boosted both home sales and prices,” Redfin Chief Economist Daryl Fairweather said in a release. “Prices heated up in West Coast metros like Seattle and Los Angeles, which indicates the slowdown of 2019 has officially ended in these markets.”
According to the report, year-over-year price increases in December were the largest in Memphis (median price $190,000, up 15.9 percent); Camden, N.J. ($195,000, +14.7 percent); and Cincinnati ($187,000, +14.4 percent)
In the metro areas Redfin tracks, New York (down 2.4 percent) and San Francisco (down 1.7 percent) where the only places with year-over-year price decreases in December.
Nationwide, home sales increased 6.8 percent year-over-year in December, and were up 1 percent from November on a seasonally adjusted basis.
The report identified the markets with the biggest yearly increases in home sales in December as Anaheim, Calif. (37.7 percent); North Port, Fla. (35.8 percent); and New Haven, Conn. (23 percent).
Redfin said the supply of homes for sale in December fell 14.9 percent year-over-year, the biggest decline since March 2013.
“Many homeowners have refinanced their mortgages to take advantage of low interest rates and therefore feel committed to staying put,” Fairweather said. “The lack of homes for sale is going to fuel competition and price growth in 2020.”