Thursday, February 10, 2022 / by Crescent Louise
January 2022 Market Update: Inventory Remains Low as Buyers Put Plans on Hold
The 2022 real estate market begins where 2021 left off, in which existing home sales reached their highest level since 2006, with the National Association of REALTORS® (NAR) reporting 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 in many markets, forcing a multitude of buyers to temporarily put their home purchase plans on hold.
New listings decreased 24.6% for single family homes and 23.1% for townhouse-condo homes.
Pending sales decreased 46% for single family homes and nearly 50% for townhouse-condo homes. Inventory decreased 38.5% for single family homes and 38.2% for townhouse-condo homes.
Median Sales Price
Median sales price increased 17.3% to $950K for single family homes and 20% to $610K for townhouse-condo homes.
Days on the Market
Days on market decreased 23% for single family homes and 38.7% for townhouse-condo homes.
Months supply of inventory decreased 40% for single family homes and 43.8% for townhouse-condo homes.
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 was at 910K at the start of the new year, the lowest level recorded since 1999, according to NAR, 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.
[This report was provided by the Pacific Association of REALTORS® (PWR)]