Countering the numbers reported for the month of December 2021, existing-home sales saw a fair increase of 6.7%, while new-home sales saw a decline of 4.5%. While reports of mortgage rates and low inventory continue to dominate headline news, we have a more thorough review of sales numbers reviewed below. Keep reading to see some quick takeaways and vital statistics!
January’s Existing-Home Sales Bounce Back
Snapping back from a drop of 4.6% in December, January 2022’s existing-home sales saw a month-to-month increase of 6.7%, including in an increase of sales in all regions, according to the latest report coming from the National Association of Realtors. This equated to a seasonally adjusted rate of 6.5 million sales in January. Despite the month-to-month jump, comparatively to the previous year sales actually fell by 2.3% compared to January of 2021.
Inventory remained at historic low numbers throughout the month, ending at 860,000 units. This was a decrease of 2.3% from the previous month and 16.5% from the previous year (1.03m in January 2021). This low inventory continued to drive-up prices for the month, with the median price in January rising to $350,300. Continuing the now established trend of double digit price increases, this is a 15.4% appreciation from the January 2021 average price of $303,600.
Although market activity remained strong for most of the month, interest rates also began seeing substantial increases. According to FreddieMac’s monthly Primary Mortgage Market Survey, average 30 year FRMs increased by 44 base points in the month.
New-Home Sales Decline Slightly
In a not unexpected shift, according to the latest data from the U.S. Census Bureau and Dept. of Housing and Urban Development, new-home sales dropped by 4.5% in January from the previous month to a seasonally adjusted rate of 801,000 units. This also equates to a difference of 192,000 units compared to January of 2021.
Prices remained high for the month, with the median sales price for a new-home $423,300 and the average sales price at $496,900.
The housing market maintains it’s unique behavior for this time of year and after almost two years of the pandemic. Keep your clients engaged and educate them about these market conditions so they can prepare for a winning transaction.