December existing home sales hit the 5+ million seasonally adjusted annualized sales rate (SAAR) for the sixth time in the past seven months as reported by the National Association of Realtors® (NAR). Sales were up 3.5 percent in December 2014 when compared to the same month a year earlier. Sequentially, sales were up 2.4 percent from November. Total sales in 2014 were 4.93 million, down 3.1 percent from in 2013.
The median price of a U.S. existing home rose to $208,500, up 5.97 percent from a year ago to the highest level seen since the burst of the housing bubble. Average price ended 2014 at $255,800.
The following table shows the actual monthly sales and a year-over-year comparison for 2013 and 2014. Monthly home sales increased three of the four last months of the year on a monthly basis, while seasonally adjusted annualized sales rose all of three of the last months of 2014. Hence 2014, which started out significantly behind in sales, finished up strong carrying momentum into 2015.
The following graph shows the monthly existing home sales – not the seasonally adjusted annualized rate — comparing 2014 to 2013. Note the strong increase at year end when compared to a year ago. December 2014 sales were at the best year-end volume since 2006.
Other details in the release included:
- Investors bought 17 percent of properties sold in December, down from 21 percent a year ago
- First time home buyers completed three of every ten transactions (29 percent) unchanged from a year ago but down from a prior norm of 40 percent
- All-cash transactions were seen 26 percent of the time versus 32 percent a year ago
- Investors paid all-cash 63 percent of the time
- Median home prices have now risen 34 consecutive months on a year-over-year basis and were up 6 percent in the latest 12 months
- Distressed sales – foreclosures and short sales – rose slightly to 11 percent of all sales compared to 9 percent the prior month but down from the 14 percent a year ago
- 8 percent of December sales were foreclosures and 3 percent short sales
- Foreclosures sold for 15 percent less than non-distressed real estate sales while short sales were discounted 12 percent
- 31 percent of December home sales were on the market less than one month
- The typical residential property closed in December 2014 was on the market for 66 days, with short sales the most at 98 days, foreclosures 61 days and non-distressed sales 66 days
To read the entire NAR press release click http://www.realtor.org/news-releases/2015/01/existing-home-sales-rebound-in-december-2014-total-sales-finish-3-percent-below-2013
While severe or challenging weather from December 2013 through April 2014 curtailed sales in the first half of 2014, the year ended up on a very positive trend with rising home sales which should carry into 2015.
Again, the housing recovery maintains a positive trajectory boding well for 2015.
Ted