As we prepare to close out the year, I wanted to share a recent real estate report from the National Association of RealtorsⓇ (NAR). This report is from Dec. 13-16th but provides a glimpse of what we’re facing this week as well. There was a lot of great information shared in the report that can help those looking to buy or sell their home.
First, the report revealed that listings are down, but signed contracts are up compared to one year ago. So although homes are going under contract, housing inventory is still low.
Houses are selling fast! Compared to a year ago, homes are selling in 3 fewer days. The report revealed that houses are on the market for only 17 days, compared to 20 days one year ago. For anyone considering selling their home, now is a good time!
The demand for houses is still high. The NAR report cited that the median existing-home sale price was 14% higher than a year ago. Even though NAR’s Chief Economist expects to see home prices rise in 2022, he expects it will be at a slower pace than what we’ve recently witnessed.
Mortgage rates are still low but slowly climbing. A 30-year fixed-rate mortgage averaged 3.069% as of Dec. 22nd, and a 15-year fixed-rate mortgage fell to 2.254%. For those looking to buy a house, now is an excellent time to lock in a low rate with your lender.
It looks like we’re not earning enough to keep up with increases in mortgage payments. Monthly mortgage payments ($223) averaged more than the increase in monthly wages ($205) compared to a year ago. Time to reevaluate our spending habits so we can afford to pay our mortgages.
There’s good news for anyone willing to move to find a house that’s priced favorably. If you’re looking for a home below the median home price and one that is expected to show strong price appreciation, check out these 10 hidden gems in the southern part of the U.S. I was convinced when I read “strong price appreciation”! For those of you who work from home and want to make a tidy profit, consider living in one of the 10 locations for a couple of years, sell for a profit, then move on and experience another great location.
Thanks to NAR, we have some great insights into what’s happening in the housing market. I look forward to seeing what the housing market has in store for us in 2022. Until then, good tidings to all!