Fewer listings, more sales and higher prices were the themes for 2016 in residential real estate sales. December 2016 was no exception.
Sale prices for single family residential properties rose 4 percent in December from the year before, according to the Ann Arbor Area Board of REALTORS®. 291 single family homes were sold in December, compared to 280 a year ago. The number of new listings continues to fall, with 165 new residential listings coming on the market in December, compared to 194 in December 2015, a drop of 15 percent. Year-to-date numbers for all of 2016 show new listings down by 6.1 percent and sales up by 4.3 percent.
Prices continue to climb—the average list price for single family residential was $284,611 in December, an increase of 4.6 percent over the December 2015 average listing price of $272,050. The average sale price shows a similar trend at $278,991 for December 2016, a jump of 5.6 percent from a year ago, at $264,182. Year-to-date numbers tell a similar story, with an average list price of $290,367, a 4.8 percent increase over the 2015 average list price of $276,999. The average sale price for 2016 was $285,108, compared to the 2015 average sale price of $271,815, an increase of 4.9 percent.
Sales in 2017 are forecast to grow by about 2 percent nationally, with the national median home price rising by 4 percent. Home buyers will also see higher mortgage rates in the new year. Still, a majority of more than 2,700 households surveyed by the National Association of REALTORS® say now is a good time to buy a home, but consumer confidence has retreated significantly among renters. Fifty-seven percent of renters say now is a good time to buy, down from 68 percent a year ago. Meanwhile, 78 percent of homeowners say now is a good time to make a home purchase.
Source: Ann Arbor Area Board of REALTORS®
