2021 was quite the year!
Between August 2020 and August 2021, home prices across the United States and Canada rose to record levels, with the U.S. housing market rising to a record of 19.9% and the Canadian housing market rising to a record 21.4%.
2022 stands to be another strong year for sellers. If you're thinking about selling your home, being aware of the trends in the market will help you understand the strength of the market.
Our 2021 Year in Review market update showcases everything you need to know about local real estate trends as we head into the new year.
Fervent buyer demand, driven by pandemic-induced changes to housing needs and preferences, reached extraordinary levels in 2021. The inventory of homes for sale remained low, as home seller activity did not rise proportionally to meet this demand. New construction activity, while strong, remains limited by a combination of material and labor shortages, rising material costs, and a regulatory and operational environment that makes it difficult to scale quickly. The strong seller’s market of 2020 continued and even strengthened in 2021, with inventory levels remaining low and multiple offer situations common across much of the housing market both locally and nationally. Multiple offers again drove prices significantly higher for the year.
Sales: Pending sales increased 9.4 percent, finishing 2021 at 27,684. Closed sales were up 13.2 percent to end the year at 27,789.
Listings: Comparing 2021 to the prior year, the number of homes available for sale was lower by 26.9 percent. There were 1,963 active listings at the end of 2021. New listings increased by 9.5 percent to finish the year at 29,658.
Bedroom Count: Increases in sales prices occurred across homes of all sizes over the last year. In 2021, properties with 3 bedrooms saw the largest growth at 16.2 percent. The highest percent of original list price received at sale went to properties with 3 bedrooms at 101.2 percent.
Showings: Showing activity in 2021 continued at high levels due to strong buyer demand and low inventory of homes for sale. There were 368,298 total showings reported by participating showing services in the region, with 11 showings before pending, which was up 10.0 percent compared to 2020.
Prices: Home prices were up compared to last year. The overall median sales price increased 14.5 percent to $229,000 for the year. Single Family home prices were up 12.4 percent compared to last year, and Townhouse/Condo home prices were up 16.1 percent.
List Price Received: Sellers received, on average, 100.8 percent of their list price at sale, a year-over-year improvement of 2.2 percent.
The 2021 housing market was once again strong both locally and nationally. Inventory shortages and high buyer demand continued to push home prices higher, with multiple offers on a limited number of homes the common theme in most market segments.
This year looks to continue the trends seen in the last 18 months, pushing home prices higher still. As mortgage rates are likely to continue to rise over the year as well, housing affordability will remain an important factor to watch.
All data from Triad MLS.