2022 had some interesting twists and turns. The numbers show it was a wild year.
2022 is a wrap, and we want to give you a quick rundown on how things are looking in the real estate market. So we compared all of 2022 to all of 2021. Here’s what we came up with overall.
Home sales were down about 12% year over year, and the number of homes coming on the market was also down about 3% year over year. However, the one thing that was interesting was that home prices were still up. Home prices for the year were up about 10% from 2021 to 2022. We feel that’s a function of fewer homes coming on the market and fewer homes selling. We also saw a lot of changes in the real estate market in 2022, the biggest one being the jump in interest rates.
So we want to compare the end of the year 2022 compared to the end of 2021, and we found similar trends, just more exaggerated. So there are fewer home sales, but home sales were down about 27% year over year for the fourth quarter. We also saw fewer homes coming on the market. About 11% fewer homes came on the market in the fourth quarter of 2022 compared to 2021. We saw home prices were still on the rise. Home prices for the fourth quarter were up about 8% year over year.
“We compared all of 2022 to all of 2021.”
That being said, the average days on market jumped up significantly at the end of 2021. The average is about 18 days on the market to sell a house. In the last three months of 2022, it was about 26 days. So still very fast. Historically, that’s nearly a 44% jump in the number of days to sell a home. The other thing we saw was that homes sold for about 1% less than the price they were listed for. That is not a huge drop in prices or anything, but definitely a change in trend to see homes selling slightly less than they were listed for. It’s important to note that even though homes are selling for slightly less than they were listed for, home prices overall were up 8% in the fourth quarter and 10% for the year. So home prices are still on the rise.
How do we interpret all this? Well, home prices are still on the rise, and homes are still selling really quickly. It still looks like we’re in a seller’s market, and the real estate market is still looking really robust. If you have any questions about any of this, please shoot me an email or text. I’d be happy to help you with your real estate needs.