January 2022 Housing Market Update

Hey, it's Andy with the Mandel Team at RE/MAX and I'm here to bring you your January 2022 Housing Market Update.

Normally, when we do these videos, we like to look month-over-month, but since we're at the beginning of the new year, I want to look at what happened in 2021 compared to 2020 so you get a real good picture as far as the entire year what really happened. So when we do these videos, we're talking about Boca, Parkland and Coral Springs. Those are the areas where our team does the predominant amount of our business. And we're talking about single family homes only. No condos, no townhouses, no 55 and over and no country clubs. So let's get into it.

The first stat we like to look at is the number of new listings hitting the market. This is what we would call the supply. On average, that is down 3% in 2021 compared to 2020. So supply wasn't as big of a deal as we had originally thought. It's really only down 3%. At the same time, the number of pending sales, the number of buyers who are taking homes and putting them under contract, is up to 3%. So slightly fewer homes hitting the market, more homes going under contract and selling. Obviously, that's a supply and demand imbalance. So that's what's kind of led to these spiking prices. So less homes hitting the market, more demand, the number of homes selling is increasing. That's a supply and demand imbalance.

The second stat we will look at is the number of days on market. This is how long it takes from when a home is listed to when it goes under contract. So when you accept an offer on this property. As you can imagine, with fewer listings and more buyers, that number has decreased substantially. In 2021, it was only 10 days on market and that feels really, really long. If you were looking for a home this year, I'm sure you saw it. The good homes, the well-priced homes, a lot of times, they were one, two days on the market before they went under contract and they were gone forever, 10 days was the average. But I think it's really a lot less for the really good well-priced homes. If you compare that to 2020, that number was 25 days. So homes are selling much, much faster now than they were in 2020.

The third stat we like to look at is the closed sales price to list price. What percentage of the seller's asking price are they getting, and on average, this year in 2021, that was 99.8%. Keep in mind, this is an average there are a lot of homes that are selling above the asking price and a lot of them that were probably overpriced that ended up selling less than the asking price. But on average, sellers were getting almost 100% of their asking price in 2021.

The fourth stat we like to look at is the number of months supply of inventory. So what this means, if it was a balanced market, there would be about six months of inventory. Anything less is a sellers market. Anything more is a buyers market. So the number of months supply of inventory, what that means is that at the current pace of sales, how quickly would it take for all of the homes on the market to go under contract. That number is .73 months of inventory right now. We are less than one month of inventory. We are still really, really low in inventory. That's really where we've been the whole year. We're somewhere about one to one and a quarter months of inventory. So right now, right after the holidays, the beginning of the year, obviously, there's gonna be a little bit less inventory. People haven't put their home on the market yet in 2021, but we do expect more homes to be hitting the market in the next couple weeks as people get over their new year's hangover and they get ready for the 2022 spring housing market.

So in all, what all these stats led to was, on average, a 24% increase in prices for homes for sale in our area. Less supply, more demand, bidding wars, multiple offers on every property has really bend the price up, and on average, home prices have gone up 24% in 2021 compared to 2020. So it was a really good time if you were a seller. If you were a buyer, obviously, it was very difficult, but let's talk about what this means for you and what we can do going into 2022.

So as a seller, with less than one month of inventory, it is still a really good time to be putting your home on the market. If you've been putting off selling, the spring market is already here. There's little competition and putting your home on the market will be getting those multiple offers and you will be getting a very good price in the next 30 to 45 days here. Buyers, what does this mean for you? Well, like we've been saying the entire year, you really gotta be ready and prepared for this market and you can't be waiting on listings, and oh, we'll see it tomorrow or the next day. You have to be one of the first people in these listings, especially if they're an updated property in a good neighborhood and it's priced correctly. It is flying off the market and you gotta be fully pre-approved, underwritten and able to write a cash offer. All of these things, we can help you do to achieve your goals of home ownership in 2022.

So if you have any questions about the housing market here in our local South Florida area, if you're looking to move to South Florida, make sure you give us a call or shoot us a text or send us an email. Remember, we got your back when moving to South Florida.