Millennials are entering the housing market at a record pace, fueling demand and driving sales prices higher amid an epic housing shortage. Currently, millennials represent 22% of the U.S. population but make up 43% of the current market share, according to a survey by the National Association of REALTORS®. With nearly a quarter of the population approaching their peak earning years over the next two decades, this new generation of homebuyers are expected to have a big impact on the economy—and on the housing market—in the years to come.
Q1 2022 Market Snapshot
Sales: In the first quarter of 2022, pending sales decreased -27.1 percent, rounding out the quarter with 1,688 pending sales. Closed sales were down -22.4 percent to end the quarter at 1,397.
Listings: Comparing Q1 2022 to Q1 2021, the number of new listings entering the market was lower by -14.5 percent, amounting to 1,846 new listings at the end of Q1.
Prices: Prices were up compared to last year. The overall median sales price increased +22.0 percent to $469,750 (homes and villas) for the quarter. The median sales price for homes amounted to $799,000, an increase of +6.5 percent compared to Q1 2021. The median sales price for condos was $399,000, which increased +2.3 percent over Q1 2021.
List Price Received: Sellers received, on average, 100.1 percent of their original list price at sale, an improvement of +1.8 percent compared to Q1 2021.
The 2022 first-quarter housing market was once again strong both locally and nationally. Inventory shortages and high buyer demand continued to push home prices higher - with multiple offers on a limited number of homes the common theme in most market segments.
Across the country, consumers are feeling the bite of inflation and surging mortgage interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising +1.4 percent since January and the highest rate in more than three years. As we head into the second quarter, housing affordability will remain an important factor to watch.
Posted by Paige Rose on
Leave A Comment