Sales of previously owned homes rose 6.7% from December 2021 to January 2022, though the total supply of homes for sale dropped 16.5% year-over-year to a record low 860,000 listings, according to CNBC. At the current lightning sales pace, that inventory can only satisfy heightened demand for 1.6 months, and without additional seller traffic or new home construction, the median home price will escalate to new highs.
The median price of a home sold in January was $350,300, a 15.4% year-over-year increase exacerbated by rising mortgage rates, investor activity, and limited supply on the lower end of the market. As would-be buyers expand their home searches thanks to remote work flexibility, home sales will likely remain strong throughout 2022.
Sales of previously owned homes in January rose 6.7% from December to a seasonally adjusted annualized rate of 6.5 million units, according to the National Association of Realtors. That exceeded Wall Street expectations significantly. Sales were 2.3% lower compared with January 2021.
“Seller traffic is very very low, implying that inventory is struggling to make the turn. Realtors are indicating multiple bidding wars are still happening,” said Lawrence Yun, chief economist for the Realtors.
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