Wednesday, March 9, 2022 / by Crescent Louise
February 2022 Update: Housing Supply is Increasing in Upper End of Market
The U.S. real estate market remains hot ahead of the spring selling season, with existing home sales up 6.7% as of last measure, according to the National Association of REALTORS® (NAR). Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher. Mortgage rates have increased almost a full percentage point since December, with the average 30-year fixed-rate mortgage briefly exceeding 4% in February, the highest level since May 2019.
New listings decreased 21.1% for single family homes and 14% for townhouse-condo homes.
Pending sales decreased 40.4% for single family homes and 45.5% for townhouse-condo homes.
Inventory decreased 32.3% for single family homes and 26.5% for townhouse-condo homes. Months supply of inventory decreased 33.3% for single family homes and 33.3% for townhouse-condo homes.
Median Sales Price
Median sales price increased 17% to $1,000,000 for single family homes and 18.9% to $642K for townhouse-condo homes.
Days on Market
Days on market decreased 29.6% for single family homes and 46.9% for townhouse-condo homes.
Inventory was at an all-time low of 860K as February began, down 17% from a year ago and equivalent to 1.6 months supply. According to Lawrence Yun, Chief Economist at NAR, much of the current housing supply is concentrated at the upper end of the market, where inventory is increasing, while homes priced at the lower end of the market are quickly disappearing, leaving many first-time buyers behind. The shortage of homes is boosting demand even further, and with bidding wars common in many markets, it’s no surprise sales prices continue to soar.
[This report was provided by the Pacific Association of REALTORS® (PWR)]