DENVER, Jan. 19, 2022 /PRNewswire/ -- Near-record
December home sales cemented 2021 as the busiest year for home
buying in the 14-year history of the report, while also setting
records for smallest inventory and highest average home prices. On
an annual basis, 2021 finished with nearly 10% more home sales than
the previous record year of 2020.
Across the 51 metro areas in the report, December 2021 home sales were the second highest
for the month in report history, trailing only December 2020. Despite the strength in home
sales, December sales defied recent month-over-month moves.
December 2021 home sales were
actually down 0.8% from November, which had an unusually high
total. In contrast, the November-to-December average change for the
five-year period from 2015-2019 was an increase of 3.5%.
"December capped a fantastic year for home sales. After a busy
2020, we expected 2021 to be even better – and it was," said
Nick Bailey, President and CEO,
RE/MAX, LLC. "Buyers shrugged off all sorts of potential obstacles
– high prices, record-low inventory, stiff competition for
available listings – and kept things rolling the entire year."
"The story of housing in 2021 was centered around high demand
that led to a substantial increase in sales despite ultra-low
supply. What's promising for 2022 is that many of the factors which
drove record sales in 2021 remain in place. Interest rates are
still attractive, workplace flexibility continues, and many
homeowners are sitting on a mountain of equity. If more of them
become sellers, there's ample reason to think the hot streak will
continue. The past two years have proven that buyers are out there
and ready to go."
December home transactions could have been even stronger had it
not been for record-low inventory. The year 2021 ended with the
smallest number of homes for sale in the 14-year history of the
report. December inventory dropped 23.6% from November – the
previous record low – and 33.3% year over year. The 10 months with
the lowest inventory in report history all occurred in 2021.
December's 1.2 Months Supply of Inventory was an all-time
low and tied the report record set in May
2021. There were two months supply of inventory a year ago.
Homes spent an average of 31 days on the market in December – two
more than November, but seven less than a year ago.
At the same time, December's Median Sales Price of $335,000 was up 1.4% over November and 11.5% year
over year. The November-to-December increase is slightly higher
than the 1.2% average for the five-year period from 2015-2019.
While the highest average sale price of the year typically is
reached in early or mid-summer, October's $340,000 was the highest in 2021 and in report
history.
Highlights and the local markets leading various metrics for
December include:
Closed Transactions
Of the 51 metro areas
surveyed in December 2021, the
overall average number of home sales is down 0.8% compared to
November 2021, and down 6.9% compared
to December 2020. The markets with
the biggest decrease in year-over-year sales percentage were
San Francisco, CA at -21.9%,
Manchester, NH at -17.6%, and
Atlanta, GA at -17.1%. Leading the
year-over-year sales percentage increase were Wilmington/Dover,
DE at +8.9%, Billings, MT
at +8.3%, and Boise, ID at
+8.2%.
Closed
Transactions:
5 Markets with the Biggest YoY
Decrease
|
Market
|
Dec
2021
Transactions
|
Dec
2020
Transactions
|
Year-over-
Year %
Change
|
San Francisco,
CA
|
4,612
|
5,903
|
-21.9%
|
Manchester,
NH
|
519
|
630
|
-17.6%
|
Atlanta,
GA
|
7,906
|
9,539
|
-17.1%
|
San Diego,
CA
|
2,904
|
3,472
|
-16.4%
|
Augusta,
ME
|
653
|
755
|
-13.5%
|
Median Sales Price – Median of 51 metro median
prices
In December 2021, the
median of all 51 metro Median Sales Prices was $335,000, up 1.4% compared to November 2021, and up 11.5% from December 2020. No metro areas saw a
year-over-year decrease in Median Sales Price while 32 metro areas
increased year-over-year by double-digit percentages, led by
Phoenix, AZ at +28.4%,
Tampa, FL at +25.7%, and
Raleigh-Durham, NC at +25.3%.
Median Sales
Price:
5 Markets with the Biggest YoY
Increase
|
Market
|
Dec
2021
Median Sales
Price
|
Dec
2020
Median Sales
Price
|
Year-over-
Year %
Change
|
Phoenix,
AZ
|
$430,000
|
$335,000
|
+28.4%
|
Tampa, FL
|
$335,000
|
$266,490
|
+25.7%
|
Raleigh-Durham,
NC
|
$390,900
|
$312,000
|
+25.3%
|
Las Vegas,
NV
|
$399,800
|
$320,000
|
+24.9%
|
Salt Lake City,
UT
|
$494,500
|
$398,942
|
+24.0%
|
Days on Market – Average of 51 metro areas
The average
Days on Market for homes sold in December
2021 was 31, up two days from the average in November 2021, and down seven days from the
average in December 2020. The metro
areas with the lowest Days on Market were Nashville, TN at 13, Cincinnati, OH at 16, and Omaha, NE at 18. The highest Days on Market
averages were in Des Moines, IA at
92, Miami, FL at 76, and
New York, NY at 71. Days on Market
is the number of days between when a home is first listed in an MLS
and a sales contract is signed.
Days on
Market:
5 Markets with the Biggest YoY
Increase
|
Market
|
Dec
2021
Days on
Market
|
Dec
2020
Days on
Market
|
Year-over-
Year %
Change
|
Boise, ID
|
35
|
19
|
+84.2%
|
Washington,
DC
|
27
|
25
|
+8.0%
|
Wichita,
KS
|
27
|
25
|
+7.7%
|
Burlington,
VT
|
39
|
38
|
+1.3%
|
New York,
NY
|
71
|
71
|
0.0%
|
Months Supply of Inventory – Average of 51 metro
areas
The number of homes for sale in December 2021 was down 23.6% from November 2021 and down 33.3% from December 2020. Based on the rate of home sales in
December 2021, the Months Supply of
Inventory decreased to 1.2 compared to 1.4 in November 2021, and decreased compared to 2.0 in
December 2020. A six months supply
indicates a market balanced equally between buyers and sellers. In
December 2021, of the 51 metro areas
surveyed, zero metro areas reported a months supply at or over six,
which is typically considered a buyer's market. The markets with
the lowest Months Supply of Inventory were Salt Lake City, UT at 0.4, and a three-way tie
between Albuquerque, NM,
Denver, CO, and Seattle, WA at 0.5.
Months Supply of
Inventory:
5 Markets with the Biggest YoY
Decrease
|
Market
|
Dec
2021
Months
Supply of
Inventory
|
Dec
2020
Months
Supply of
Inventory
|
Year-over-
Year %
Change
|
Albuquerque,
NM
|
0.5
|
1.6
|
-68.8%
|
Miami, FL
|
1.9
|
5.8
|
-67.2%
|
Hartford,
CT
|
0.8
|
2.2
|
-63.6%
|
Providence,
RI
|
1.1
|
2.9
|
-62.1%
|
Orlando,
FL
|
0.9
|
2.2
|
-59.1%
|
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mediarelations@remax.com.
About the RE/MAX Network
As one of the leading global
real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX
Holdings (NYSE: RMAX) with more than 140,000 agents in over 8,600
offices across more than 110 countries and territories. Nobody in
the world sells more real estate than RE/MAX, as measured by
residential transaction sides. RE/MAX was founded in 1973 by
Dave and Gail Liniger, with an
innovative, entrepreneurial culture affording its agents and
franchisees the flexibility to operate their businesses with great
independence. RE/MAX agents have lived, worked and served in their
local communities for decades, raising millions of dollars every
year for Children's Miracle Network Hospitals® and other charities.
To learn more about RE/MAX, to search home listings or find an
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Description
The RE/MAX National Housing Report is
distributed each month on or about the 15th. The first
Report was distributed in August 2008. The Report is based on
MLS data in approximately 51 metropolitan areas, includes all
residential property types, and is not annualized. For maximum
representation, many of the largest metro areas in the country are
represented, and an attempt is made to include at least one metro
from each state. Metro area definitions include the specific
counties established by the U.S. Government's Office of Management
and Budget, with some exceptions.
Definitions
Transactions are the total number of
closed residential transactions during the given month. Months
Supply of Inventory is the total number of residential properties
listed for sale at the end of the month (current inventory) divided
by the number of sales contracts signed (pended) during the
month. Where "pended" data is unavailable, this calculation is
made using closed transactions. Days on Market is the number of
days that pass from the time a property is listed until the
property goes under contract for all residential properties sold
during the month. Median Sales Price is the median of the
median sales prices in each of the metro areas included in the
survey.
MLS data is provided by contracted data aggregators, RE/MAX
brokerages and regional offices. While MLS data is believed to be
accurate, it cannot be guaranteed. MLS data is constantly
being updated, making any analysis a snapshot at a particular time.
Every month the RE/MAX National Housing Report re-calculates the
previous period's data to ensure accuracy over time. All raw data
remains the intellectual property of each local MLS
organization.
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SOURCE RE/MAX, LLC