Less 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.
To see more Ann Arbor Area housing statistics, view the December 2016 Statistics Report.