At the end of 2017, we were able to look at the past year and see that existing-home sales were up 1.1% from 2016—and it was the best year for sales since 2006. January 2018 looked a little bit different, though. Existing-home sales are 4.8% below levels from a year ago and are at the slowest pace since last September.
We also saw a dip in the amount of first-time homebuyers—they went from 32% in December 2017 to 29% in January 2018. Median home prices increased in the Northeast by $7,700 between December and January, but decreased in every other region, with differences ranging between $3,400 and $13,000.
Millennials—those born between 1980 and 1999—are continuing to buy homes around the country. The data team at realtor.com recently released the results of a study in which they sought to find the hottest markets for each generation. When it came to millennials, they’re flocking to some of the country’s biggest cities (especially the tech hubs). If you’re an agent in any of these areas, be on the lookout for more millennial buyers:
- San Francisco
- Washington, DC
- Ann Arbor, MI
- State College, PA
Realtor.com notes that many millennials are looking for hot job markets, lively nightlife, and hip bars/eateries. And the more they go out and post on Instagram about how much fun they’re having, the more it attracts other millennial to move to these areas.
Homes are selling faster than last year—which is great news for sellers—but it’s taking longer for potential home buyers to find a home due to higher than expected home prices on limited inventory. In a survey from the National Association of Home Builders, 42% of those surveyed said prices for the homes they wanted to be in were not anything they could afford to buy.
It’s going to be an interesting year with a lot of different factors to watch. Check back next month—we’ll have February’s data and a new infographic for you.