Sina US Stock, January 18 — According to Redfin, low interest rates and the tightest supply in history drove US housing prices to their biggest increase in 19 months in December.

The broker said in a report on Friday that housing prices rose 6.9% year over year, reaching a median value of $312,500, the biggest increase since May 2018. Of the 85 largest metropolitan areas tracked by Redfin, only two prices fell: New York fell 2.4% and San Francisco fell 1.7%.

Low interest rates and a strong economy attracted buyers to the market, increasing competition for scarce supply. Redfin chief economist Daryl Fairweather said the rise in housing prices in West Bank regions such as Seattle and Los Angeles “indicates that the slowdown in these markets in 2019 has officially ended.”

In Redfin's study, some of the cheapest cities saw the biggest increases, with Memphis, Tennessee leading the way, with a 16% increase.

The national inventory of houses available for sale fell 15% compared to the same period last year. According to the broker, the number of properties available for sale last month was the lowest since at least 2012/12.

“A lot of homeowners have taken advantage of lower interest rates to refinance their mortgages, so they want to wait,” Fairweather said. “The lack of homes for sale will increase competition and price increases in 2020.”