Some predict that the real estate market in 2022 will be even more competitive than it was last year, which is an encouraging sign.
According to data from Realtor.com, the number of homes sold in the United States reached its highest level ever in January. The average home was on the market for only 61 days, according to the data. This is a reduction of 10 days from the previous month and a reduction of 29 days from the average time spent on the market between 2017 and 2020.
Some of the country’s hottest real estate markets saw homes being snapped up at an alarmingly rapid pace. In Nashville, the average home was on the market for only 29 days in January, according to Zillow.
According to Realtor.com, homes in San Diego, San Jose, and Denver spent an average of 35 days on the market, while homes in Raleigh, North Carolina, spent an average of 36 days on the market.
The Realtor.com Chief Economist Danielle Hale said in a statement that “we’re anticipating a hectic year ahead for buyers and, if January housing patterns are any clue, 2022 competition is already heating up.”
Buyers are more active than typical for this time of year, as evidenced by the record-breaking pace of home sales in the month of January.
Her comments were followed by a mention of how things appear to be different on the sellers’ side, with new listings dropping in January as a result of the coronavirus and delays in the delivery of construction supplies caused by the supply chain issue, among other causes.
When compared to the same month the previous year, the number of active listings fell by 28.4 percent.
As a result of the large flood of interested buyers and the scarcity of available inventory, homes are becoming increasingly difficult to find and increasingly expensive. According to Realtor.com, the typical listing price increased by 10.3 percent on a year-over-year basis in January, reaching $375,000.
As purchasers scramble to lock in their mortgages before interest rates rise, the possibility of rising rates is likely to exacerbate the frenzy, at least in the short term.
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It’s understandable that the majority of Americans are pessimistic about their future. Several recent studies, including one from Fannie Mae, have revealed that 70 percent of Americans believe it is a problem.
That figure increased to 83 percent among millennials and members of Generation Z. Only 25 percent of those polled believe now is a good time to buy a home, which is a record low.