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® reporting sales were up 8.5 percent 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 11.0 percent for Residential homes but increased 5.0 percent for Townhouse/Condo homes. Pending Sales decreased 9.3 percent for Residential homes but increased 16.9 percent for Townhouse/Condo homes. Inventory decreased 26.0 percent for Residential homes and 42.3 percent for Townhouse/Condo homes. Median Sales Price increased 8.0 percent to $243,000 for Residential homes and 10.0 percent to $190,175 for Townhouse/Condo homes. Days on Market decreased 17.5 percent for Residential homes and 4.8 percent for Townhouse/Condo homes. Months Supply of Inventory decreased 30.8 percent for Residential homes and 50.0 percent 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 910,000 at the start of the new year, the lowest level recorded since 1999, according to the National Association of REALTORS®, 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.
