The 2021 housing market was one for the history books.
After 3 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(R).
Sales prices reached new heights, inventory hit rock bottom, and homes sold in record time, often for well above asking price.
In short:
- New listings were down 0.7%
- Pending sales increased 8.3%
- Inventory shrank 40.3%
- Median sales price increased 20% to $350,000.
- Months of supply of homes for sale was down 45.5%, indicating that demand increased relative to supply.
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.
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.
SOURCES:
- Canopy REALTOR® Association, Charlotte Region Monthly Indicators. January 5, 2022.
- Based on information from Canopy MLS for the period January 1, 2021 through December 31, 2021.
- FreddieMac Research & Perspectives Research Division, Primary Mortgage Market Survey® January 13, 2022.
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