Trend in home sales in the U.S. has been observed to take a turn at the end of the last year as compared to the norm for the last two years. In fact, statistics highlight that the trends had started to change from the September of 2014 itself. Sales increased by a hefty 14.4 % from November to December in 2014 and 3.9% as compared to the same time of the previous year. Home prices in December 2014 had also increased from the previous year’s prices.
Although most of 2014 recorded lower sales in the real estate industry as compared to 2013, the trend altered slightly during the last few months of the year. The comparisons are made between equivalent months of the previous years. Apart from this, home prices have also been recorded to surge in the same period. In December 2014, a surge of 5.9% in home prices was noticed, as compared to the prices of December 2013.
However, inventory remained constrained, and a drop of 10.7% was marked in the availability of homes for sale as compared to December 2013. This urged the Months Supply of inventory to rise to the 5.7 mark. This indicates a shortage of supply versus demand because the scale mark 6.0 established harmony between buyers and sellers in the market.
Seeing the year end change the real-estate industry’s scenario, REMAX’s CEO, Dave Liniger, issued a positive comment. He said that although the year started off sluggishly, it ended on a better note. He also highlighted that the increase in the number of home buyers in the winter season showed their confidence. In addition, there was a significant increase in the number within a one-month period. He also explained that the buyers do not feel priced out because there is a slower increase in the home prices as compared to the previous year. This also assists sellers to raise their equity, he said.