Kelly Hager Group

The 2022 real estate market begins where 2021 left off, in which existing home sales reached their highest level since 2006, with the National Association of REALTORS® reporting sales were up 8.5 percent compared to the previous year as homebuyers rushed to take advantage of historically low mortgage rates. Home sales would’ve been even greater were it not for soaring sales prices and a shortage of homes for sale in many markets, forcing a multitude of buyers to temporarily put their home purchase plans on hold.

New Listings decreased 11.0 percent for Residential homes but increased 5.0 percent for Townhouse/Condo homes. Pending Sales decreased 9.3 percent for Residential homes but increased 16.9 percent for Townhouse/Condo homes. Inventory decreased 26.0 percent for Residential homes and 42.3 percent for Townhouse/Condo homes. Median Sales Price increased 8.0 percent to $243,000 for Residential homes and 10.0 percent to $190,175 for Townhouse/Condo homes. Days on Market decreased 17.5 percent for Residential homes and 4.8 percent for Townhouse/Condo homes. Months Supply of Inventory decreased 30.8 percent for Residential homes and 50.0 percent for Townhouse/Condo homes.

For many buyers, 2022 marks a new opportunity to make their home purchase dreams a reality. But it won’t be without its challenges. Inventory of existing homes was at 910,000 at the start of the new year, the lowest level recorded since 1999, according to the National Association of REALTORS®, and competition remains fierce. Affordability continues to decline, as inflation, soaring sales prices, and surging mortgage interest rates reduce purchasing power. The sudden increase in rates and home prices means buyers are paying significantly more per month compared to this time last year, which may cause sales to slow as more buyers become priced out of the market.

Mortgage rates have increased significantly since the beginning of the year. Each Thursday, Freddie Mac releases its Primary Mortgage Market Survey. According to the latest survey, the average 30-year fixed-rate mortgage has risen from 3.22% at the start of the year to 3.55% as of last week. This is important to note because any increase in mortgage rates changes what a purchaser can afford. To give you an idea of how rising mortgage rates impact your purchasing power, see the table below...

https://www.stlouisareahomesearch.com/blog/the-top-indicator-if-you-want-to-know-where-mortgage-rates-are-heading/

*Buying a home and wondering if your inspection is necessary? While some buyers may decide to waive their inspection, it’s risky decision.
*Your home inspection is a crucial step in the homebuying process. It assesses the condition of the home you plan to purchase, so you can avoid costly surprises down the road.
*Let’s connect so you have expert advice and a trusted professional who will keep your interests top of mind.

If you’re thinking about selling your house in 2022, you truly have a once-in-a-lifetime opportunity at your fingertips. When selling anything, you always hope for strong demand for the item coupled with a limited supply. That maximizes your leverage when you’re negotiating the sale. Home sellers are in that exact situation right now. Here’s why...

Why Right Now Is a Once-in-a-Lifetime Opportunity for Sellers | St. Louis, St. Charles and Jefferson County Real Estate :: Kelly Hager Group | TdD Premier Real Estate If you’re thinking about selling your house in 2022, you truly have a once-in-a-lifetime opportunity at your fingertips. When selling anything, you always hope for strong demand for the item coupled with a limited supply.