Home prices rose in December by over 11% year-over-year in the 19 markets tracked by real estate broker Redfin, although they did drop a scant 40 basis points from November.
The likely primary cause of the increase in price is a 33% drop in inventory compared to December 2011, the largest drop in 2012.
For 2012, sales volume increased 9% from 2011. December saw a 4.1% decline from November, but a 3.4% increase over December 2011. The monthly decline in sales volume also was due to the lack of inventory, Redfin said.
Boston had a 24% increase in home sales when compared with December 2011, while California’s Inland Empire region had a 17.3% decline.
But the Inland Empire was one of the fastest-selling markets during December, with 39.2% of homes sold within 14 days of listing. San Jose had a 58.2% rate, followed by San Francisco, 49.5%, Ventura, 45.7%, Los Angeles, 41.7%, and San Diego, 41.2%.