Despite slim inventory the number of home sales are up
Cervone Deegan + Associates would like to share that according to a recent report from the National Association of REALTORS® (NAR), even though the number of home sales had dropped during the month of December breaking a 3 month streak of gains, the total overall sales for the year were quite high.
Regardless of each of the four major regions in the United States experiencing a dip in sales at the end of the year, overall sales for all of 2021 had increased by 8.5%.
"December saw sales retreat, but the pull back was more a sign of supply constraints than an indication of a weakened demand for housing," said Lawrence Yun, NAR's chief economist. "Sales for the entire year finished strong, reaching the highest annual level since 2006."
Home Sales Forecast
Yun does feel that the number of home sales may slow a bit with mortgage rate upticks. He expects that mortgage rates will stay under 4% this year with wages holding as we have a tight labor market.
"This year, consumers should prepare to endure some increases in mortgage rates," Yun cautioned. "I also expect home prices to grow more moderately by 3% to 5% in 2022, and then similarly in 2023 as more supply reaches the market."
Total housing inventory was down as 2021 came to an end by comparison to the month before and to the same time last year. Available inventory sits at a 1.8 month supply at the current sales pace which is down from the month before and last year at this time.
Housing prices continue to rise with the median existing-home price for all property types up 15.8% at the end of the year over 2020. This made for the 118th straight month for year-over-year gains - the longest stretch on record.
Days on Market
Homes remained on the market available for sale for an average of 19 days for the month of December which was 2 fewer days than that of 2020. We also saw the majority of the homes at 79% of them being on the market for less than one month.