Watching the Market

Like so many other things in our lives, right now a lot of us are simply watching. Watching Covid numbers, watching mortgage rates, and watching home prices. Sometimes the numbers dip, sometimes they spike, but they are ever changing. Here’s a look at the market for the end of February. 

According to the National Association of Realtors, home sales in January 2022 jumped up almost 7% from December 2021. However, that number (6.5 million home sales) is still down 2% from this same time last year. This isn’t because of lack of buyers but is due to lack of inventory. 

The indicators of a healthy market usually mean 6 months of inventory. January, however, saw a record low number of unsold homes. Just 1.6 months of inventory. This generally means homes sell in a matter of days, if not hours, usually to the tune of bidding wars. 

That’s exactly what Chief Economists are reporting, too. The median home price surged because of this imbalance. Average cost of buying now? You’re looking at upwards of $350,000: a 15% jump. However, the National Association of Realtors is reporting a robust selection of homes above the $500,000 threshold that are ready and waiting for buyers. 

The thing is… most buyers, especially first time home buyers, simply do not fall in that price point. Time will tell if these price upticks will stay or if they will level out along with mortgage rates and inflation. Guess we’ll just have to keep watching.