The 2021 housing market was one for the history books. After three consecutive months of increases recently, existing home sales are on pace to hit their highest level in 15 years, with an estimated six million homes sold in 2021, according to the National Association of REALTORS®. Sales prices reached new heights, inventory hit rock bottom, and homes sold in record time, often for well above the asking price. 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.
New listings decreased five percent for residential homes and 14.8 percent for townhouse/condo homes. Pending sales decreased six percent for residential homes and 1.6 percent for townhouse/condo homes. Inventory decreased 27.4 percent for residential homes and 40.6 percent for townhouse/condo homes.
Median sales price increased 7.7 percent to $251,051 for residential homes and 6.7 percent to $189,900 for townhouse/condo homes. Days on market decreased 25 percent for residential homes but increased 4.9 percent for townhouse/condo homes. Months supply of inventory decreased 28.6 percent for residential homes and 47.4 percent for townhouse/condo homes.
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.