Homebuyers are kicking-off 2022 ready to compete, according to realtor.com’s Weekly Data Report, which shows listing prices continue to rise at a double-digit pace and time-on-market remains historically low.
Key findings:
- The U.S. median listing price increased 11.7% over last year, making the sixth straight week of double-digit gains and the highest annual growth rate since July 2021. Prices continue to rise largely due to the mismatch between supply and demand, as winter buyers continue to eagerly search the short supply of existing and new construction listings in hopes of finding the right home.
- New listings – a measure of sellers putting homes up for sale—were down 8% year-over-year. New listings have trended below historical levels for eight of the past 10 weeks. The limited availability of for-sale homes is an ongoing challenge to buyers successfully finding and closing on a home—including the 65% of prospective sellers looking to make a move this winter. As a result of the tight for-sale home supply, potentially compounded by omicron uncertainties, homeowners may be hesitating to enter the market.
- Active inventory was down 28% from a year ago. Fewer new sellers—which is typical for this time of year—combined with unseasonably active home shoppers, means inventory continues to fall short of prior years’ levels. While this represents a significant challenge for winter buyers, there may be some relief on the horizon for those with more flexible timelines: realtor.com® forecasts that inventory will recover from 2021’s steep declines by the end of the year.
- Time on market was down 10 days from last year, holding within the 9-10 day range for the past four weeks. So far in 2022, the yearly pace of home sales remains near the rate seen in December (-11 days), when buyers snatched up the limited inventory of for-sale homes at a faster pace than in any prior year’s fastest month.
The takeaway:
“Real estate markets remain active so far this winter. Data shows buyers continued searching the still-limited for sale home supply last week, which declined again along with new listings,” said realtor.com® Chief Economist Danielle Hale. “Despite—and perhaps even because of—rising mortgage rates, buyers have entered the 2022 housing market ready to compete. Between looming rate hikes, rising home prices and surging rents, today’s home shoppers have plenty of motivation to close while monthly costs might still be affordable. New sellers will be key to buyers’ success, and while more homeowners plan to list this winter, it’s important to remember that the majority of sellers also face the challenge of finding their next home. These supply and demand dynamics create a ‘chicken and egg’-type dilemma, and one that will be important to watch heading into the spring when competition typically picks up even further.”
You can read the full Housing Trends report here.
