The 2021 housing market was one for the history books.
After three consecutive months of increases recently, existing home sales are on pace to hit their highest level in 15 years, with an estimated 6 million homes sold in 2021 according to the National Association of REALTORS®. Sales prices reached new heights, inventory hit rock bottom, and homes sold in record time, often for well above asking price. Mortgage rates, which began the year at historic lows, remain attractive, and homeowners who choose to sell in the coming months can expect to see plenty of buyer activity due to pent up demand during the pandemic.
New listings increased 4.2 percent for Single Family homes but decreased 4.9 percent for Townhouse-Condo homes. Pending Sales increased 17.9 percent for Single Family homes and 43.6 percent for Townhouse-Condo homes. Inventory decreased 11.7 percent for Single Family homes and 46.1 percent for Townhouse-Condo homes.
Month’s Supply of Inventory decreased 15.4 percent for Single Family homes and 59.1 percent for Townhouse-Condo homes.
Median Sales Price increased 11.9 percent to $225,000 for Single Family homes and 31.8 percent to $145,000 for Townhouse-Condo homes.
Days on Market decreased 30.3 percent for Single Family homes and 46.7 percent for TownhouseCondo homes.
Looking ahead, experts anticipate many of the housing market trends of 2021 will continue in 2022, albeit at a more moderate level. Strong buyer demand and inventory shortages are likely to persist over the next year. Home sales are projected to remain strong but will be tempered by the limited supply of homes, higher sales prices, and rising interest rates, with the Federal Reserve planning multiple rate hikes in the new year. Price growth is expected to slow somewhat as a result, but affordability will likely remain a top constraint for some homebuyers.
If you are wondering how current national and global situations might be impacting your property’s value, your neighborhood, or the Real Estate market in general, we are happy to provide more specific information.
If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.
