Every year, we take a look at the numbers to determine how the market performed. In 2019, we’re proud to announce that Murney Associates again eclipsed $1 Billion in closed real estate sales for the year. We don’t normally like to pat ourselves on the back, but it’s only the second time a company has ever done achieved that landmark. The other time was also Murney Associates in 2018.
The real estate market was very strong in 2019, but it wasn’t perfect. The most impactful factor in the market was interest rates. After much debate on what the the Fed would do, rates actually decreased during the year. This gave homebuyers a great opportunity to get locked in at a near record low rate.
Another factor in the market in 2019 was inventory. All across the country inventory was low last year. In Springfield it was no different. This offered buyers less time to deliberate on their choices and fewer options overall during the year.
The best news for sellers was pricing. Prices increased in nearly every range during 2019. We love to see home values continue to appreciate because it means our clients are experiencing gains in their real estate investments, even if it’s just the house in which they reside.
Let’s take a closer look at the key performance indicators for the market in 2019!
Median home prices averaged out at just below $164,000 for the year with a range from $150K to $180K. seasonal factors always impact the market and we saw prices increase during the warmer months and cool off with the weather. Overall, sellers experienced very good conditions in 2019.
Inventory was low for most of 2019. We measure this by the total months of supply we’d have if no new homes came on the market. For most of the year, the number was below 3 months! This made it a competitive market for buyers, requiring them to act fast to secure the home they wanted, and a very quick, active market for sellers.
Interest rates were a bright spot of the housing market in 2019. By the end of the year, rates were back down below 4%, making them some of the lowest rates we’ve ever experienced. Now is a fantastic time to secure a mortgage historically speaking. Rumblings of a change in rates are sure to continue in 2020, but for now, they’re in great shape!
As of January 1, 2020, rates are still well below 4% for 30-year fixed rate mortgages. Rates hit lows in September when they reached 3.49%. Refinancing was a popular discussion during that time and could still be an option for existing mortgages.
It was a seller’s market out there in 2019. Homes sold fast for nearly the entire year. If you listed your home, you could count on it being sold in well under two months in most cases.