With home prices continuing to rise and mortgage rates following the same path, it appears that some buyers are not waiting for the spring to enter the market. Although the increase in home price appreciation appeared to slow down during the fall months, they are beginning to once again move higher. As a matter of fact, home price appreciation rose by 1.2% in November and once again by 1.4% in December 2021.
Inventory constraints continue to impact the market
Most experts agree that the persistently tight inventory of homes for sale combined with the expected rise in mortgage rates is forcing many buyers to accelerate their home search plans. For many of these buyers, waiting too long will result in being completely priced out of the market. For perspective, buyers in December 2021 had 19.5% fewer homes to choose from than a year prior. When comparing this inventory to December 2019, there were 40.5% fewer homes for sale.
Unfortunately, the omicron variant of the coronavirus may also be adding fuel to the inventory constraint fire. Many would be sellers appear to be holding off on listing their homes for sale until infection rates subside. In addition, the uncertainty around long-term working arrangements could also play a part in keeping the housing inventory low.
The median existing-home price for all housing types in December 2021 reached $358,000. This figure is up 16% from the December 2020 ($309,200) median existing-home price. This has resulted in 118 straight months of year-over-year increases and marks the longest-running streak on record, according to the National Association of Realtors®.
The 30-year-fixed rate reached 3.56% for this week, according to Freddie Mac. This is the highest rate since March 2020. Needless to say, it is likely that the spring home buying season will get a head start this year.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!