Summary
As seen in the chart above, both prices and sales were shot out of a cannon last spring. With more than half of all sales receiving multiple offers, average sale price jumped 17% from $265k in the first quarter to $309k in the second. Just as suddenly as the market took off, it settled in June. Buyers who had been hyper-focused on buying homes were distracted when they were suddenly able to resume the traditional life activities they had missed over the prior year. Although they tailed off slightly in the second half of the year, fourth quarter prices and demand remained strong as they carried over into 2022.
Demand Keeps Inventory Tight
Annual 2021 sales were up 6% from 2020 and 7% compared to 2019. Tight inventory coupled with extreme demand drove prices up. Average sale price and price per square foot ended the year up 13% and 14% compared to 2020. Inventory shortages and a high level of carryover demand from buyers who couldn’t purchase a home last year have showing and new pending numbers running high early in 2022.
