The 2022 real estate market begins where 2021 left off, in which existing home sales reached their highest level since 2006. The National Association of REALTORS® reported sales were up 8.5% compared to the previous year as homebuyers rushed to
take advantage of historically low mortgage rates. Home sales would’ve been even greater were it not for soaring sales prices and a shortage of homes for sale, forcing many buyers to temporarily put their home purchase plans on hold.
take advantage of historically low mortgage rates. Home sales would’ve been even greater were it not for soaring sales prices and a shortage of homes for sale, forcing many buyers to temporarily put their home purchase plans on hold.
Compared with last January:
- New Listings: Decreased 12.9%
- Pending Sales: Decreased 5.3%
- Inventory: Decreased 43.9%
- Median Sales Price: Increased 22.7% to $349,700
- Months Supply of Homes for Sale: Decreased 50%
For many buyers, 2022 marks a new opportunity to make their home purchase dreams a reality. But it won’t be without its challenges. Inventory of existing homes is at the lowest level recorded since 1999 and competition remains fierce. Affordability continues to decline, as inflation, soaring sales prices, and surging mortgage interest rates reduce purchasing power. The sudden increase in rates and home prices means buyers are paying significantly more per month compared to this time last year, which may cause sales to slow as more buyers become priced out of the market.
Click HERE for a full copy of the monthly report.
Source: Canopy Realtor Association