Summary
Inventory— The combination of strong demand and low inventory left the shelves bare heading into 2022. The number of available listings is down by 33% and the quality of what is available is also limited.
Closed Units—Annual sales were up 9% compared to 2020 and 8% compared to 2019. Although demand remains high, 2022 sales will again be limited by supply.
Values— Both average sale price and price per square foot were up 12% and 9% in 2021. Most of the rise took place in the first half of the year as competing offers and bidding wars caused a jump in prices. Although prices had some settling in the second half of the year, the $207 December price per square foot was up 10% from the previous year.
Summary— Demand remains high and will be fueled by the threat of rising future interest rates. Depleted initial inventory levels and quality will limit sales in the early months of 2022 but expect sales and prices to jump as fresh inventory becomes available. Expect the hot spring market to cool midyear as it did in 2021. Both buyers and sellers would do well to act early in 2022.
Demand Keeps Inventory Tight
Annual 2021 sales were up 11% from 2020 and 10% compared to 2019. Tight inventory coupled with extreme demand also drove values up. Average sale price and price per square foot ended the year up 12% and 13% 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 up early in 2022. As seen below, market times are dropping and will continue to drop through the spring.
