The 2019 housing market was fueled by the overall
strength of the economy across most of the country. The stock
markets reached new highs throughout the year, improving the
asset bases of millions of Americans. Unemployment rates fell
to 50-year lows, while wages increased, creating new home
buyers. Mortgage rates also declined significantly from 2018,
helping to offset affordability stresses caused by continued
price appreciation nationally.

With a strong economy and low mortgage rates, buyer activity
has been strong. However, most markets are being
constrained by inventory levels that are still below historical
norms. With supply and demand continuing to favor sellers,
prices continue to rise.

With 10 years having now passed since the Great Recession,
the U.S. has been on the longest period of continued
economic expansion on record. The housing market has been
along for much of the ride and continues to benefit greatly
from the overall health of the economy. However, hot
economies eventually cool and with that, hot housing markets
move more towards balance.

Sales:

Pending sales increased 7.3 percent, finishing 2019 at
32,466. Closed sales were up 5.4 percent to end the year at
31,881.

Listings:

Comparing 2019 to the prior year, the number of
homes available for sale was lower by 17.2 percent. There
were 7,602 active listings at the end of 2019. New listings
increased by 0.5 percent to finish the year at 40,814.

Lender-Mediated Properties:

The foreclosure market
continues to be a hint of its former unhealthy peaks. In 2019,
the percentage of closed sales that were either foreclosure or
short sale decreased by 9.3 percent to end the year at 4.7
percent of the market.

New Construction: : Nationally, builder activity grew in 2019
versus levels seen in 2018, though the total units being built
remains lower than needed for long-term supply. Locally, new
construction market share was at 16.2 percent, while months of
supply finished 2019 at 3.7 months. Previously owned homes
have seen months of supply decrease from 4.2 to 2.6 months
over the last five years, and new construction supply has
dropped from 4.2 to 3.7 months.

Prices:

Home prices were up compared to last year. The
overall median sales price increased 5.4 percent to $233,990
for the year. Single Family home prices were up 3.4 percent
compared to last year, and Townhouse-Condo home prices
were up 5.3 percent.

While the Federal Reserve moved to temper the hot economy
with four interest rate hikes in 2018, in 2019 they turned the
heat back up, and reduced rates a total of three times during
the year. The Fed’s rate decreases were due in part to GDP
growth in 2019 that came in notably lower than 2018, showing
the Fed’s alternating efforts to keep our economy at a steady
simmer and not a full boil.

The housing market continues to remain healthy nationwide
with price gains and limited inventory being the most common
threads across markets. Tight inventory continues to constrain
buyer activity in part of the country, while some areas are
seeing increased seller inventory starting to improve buyers’
choices. New construction activity continues to improve, but is
still below levels required to fully supply the market’s needs.

As we look at 2020, we see continued low mortgage rates and
a healthy economy giving a great start to housing in the new
year. But in election years, we sometimes see a softening of
activity that may temper the market in the second half of the
year.