We hope that 2021 was very good to you, and we wish you a happy 2022. Today we wanted to take some time to look back at our 2021 market and predict what might happen in 2022.
There were 15,607 home sales in 2021 compared to 2020, where we saw just over 15,000. 2017 is the only year that exceeded 15,000 homes sold, but the median price was only $285,000.
In 2021, the median sales price was $438,000. It’s crazy to think that’s only a four-year difference. That’s number is up 18% from 2020, when the median sales price was only $370,000. Prices have increased so much that Freddie Mac and Fannie Mae had to raise their loan limits substantially.
We saw an average of 10 days on market. That number measures the time from when a home hits the market until it goes under contract. Sellers were also expecting much more than the asking price in 2021. The sale-to-list-price ratio was 103.2%. Not only did the average sales price go up, but the sale-to-list price ratio went up significantly too.
What do we expect from 2022? Well, in the first week of 2022, we’re already getting phone calls for appointments and showings. The market is starting off hot. All of the people who stayed out of the market during the holidays are jumping in now. That’s pretty common, but it usually happens around February.
In the end, we’ll probably see more of the same: lower days on market, a similar sales-to-list price ratio, and an increase in median sales price. We’ll also probably see interest rates increase. This increase wouldn’t be that large, but even a small jump can significantly affect a buyer’s buying power. If you have any questions about our 2021 or 2022 markets, feel free to call or email us.