NVRA Market Reports are sponsored by the North Country Federal Credit Union
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 6 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 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 2.2 percent for single-family homes and 10.5 percent for townhouse-condo properties. Pending Sales remained flat for single-family properties but increased 9.8 percent for townhouse-condo properties. Inventory decreased 46.2 percent for single-family homes and 54.2 percent for townhouse-condo properties.
The Median Sales Price was up 14.3 percent to $400,000 for single-family homes and 29.9 percent to $315,000 for townhouse-condo properties. Days on Market remained flat for single-family homes but increased 2.8 percent for townhouse-condo properties. Months Supply of Inventory decreased 47.1 percent for single-family homes and 55.6 percent for townhouse-condo properties.
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.