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% 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.
Closed Sales decreased 6.5 percent for existing homes and 10.2 percent for
new homes. Pending Sales increased 0.3 percent for existing homes but
decreased 36.8 percent for new homes. Inventory decreased 38.6 percent for
existing homes and 7.0 percent for new homes.
The Median Sales Price was up 8.0 percent to $235,000 for existing homes
and 17.0 percent to $466,815 for new homes. Days on Market decreased 13.3
percent for existing homes and 16.2 percent for new homes. Supply
decreased 44.4 percent for existing homes but increased 7.7 percent for new
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.