December 2021
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 were down 9.4 percent to 996. Pending Sales increased 0.8 percent to
1,055. Inventory shrank 15.1 percent to 1,286 units.
Prices moved higher as Median Sales Price was up 15.0 percent to $241,565. Days
on Market decreased 33.3 percent to 26 days. Months Supply of Inventory was
down 25.0 percent to 0.9 months, indicating that demand increased relative to
supply.
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.
Information courtesy of CMLS*
