Bucking seasonal slow-down trends, home-buying competition is heating up as the year comes to a close. According to realtor.com®’s latest Weekly Market report for the week ending Dec. 11, the annual pace of home sales is up even as the inventory gap widens, and listing price growth is close to entering the double digits.
Key findings:
- The U.S. median listing price increased 9.6% year-over-year.
- New listings decreased 6% year-over-year.
- Active inventory decreased 27% from a year ago.
- Days on market decreased 11 days from last year.
The takeaway:
“In a potentially fitting end to the 2021 frenzy, U.S. housing activity is showing signs of a holiday lift in competition. After a mixed start to the month, last week’s metrics signaled an uptick in buyers eagerly searching for the right home—and finding limited options as fewer new sellers entered the market,” said realtor.com® Chief Economist Danielle Hale in a statement. “With a whirlwind housing market ahead and mortgage rates projected to climb in 2022, some home shoppers might be feeling the pressure to close before end-of-year. However, given recent setbacks in inventory and uncertainties around the impact of the Omicron variant, buyers may find relatively better opportunities in the new year.”
“Home shoppers should still be prepared for fierce competition, fast-paced sales and affordability challenges in 2022, but also have plenty to look forward to,” added Hale. “With the for-sale housing supply expected to recover from COVID lows as more sellers plan to enter the market, home sales are forecasted to hit new highs nationwide.”