A MESSAGE FROM PRESIDENT, JESSICA DEVORE
“Spring Housing Market is Strong”
March 28, 2022
2022 started off with a bang and February is continuing the trend. We are thrilled to see the units of new construction are up 145.5% from last year. Even as the builders have been met with supply chain delays and increasing prices they are pushing through and making it happen.
Resale homes reflect a lower unit percentage of -3.2% from last year due to a lack of available inventory but the average price is 5.9% which shows a healthy market for sellers. The spring market starts off the busy time in real estate. We expect to see more resale housing inventory released due to optimal seller market conditions that will assist with the current lack of homes.
The total housing volume reflects a 12.8% increase from 2021 which is a positive sign that buyers are finding homes. In addition, more properties are being built in anticipation of increased activity in the housing market and strong economic growth.
MIRA Platinum Affiliate Partner, Rebecca Stiles-Bergquist of Waterstone Mortgage said “Mortgage rates have risen slightly in early 2022 but, all things considered, they are still low – meaning that homeownership can be attainable for many families and individuals. As we move into the spring and summer buying and selling season, we anticipate that the market will continue to be volatile. This makes it riskier for borrowers to wait when it comes to locking in their interest rate. While the local market has been opening up slightly, in terms of inventory, we hope to see more progress with this in the coming months.”
On the national front, NAR’s Chief Economist, Lawrence Yun, says jobs are playing a huge role in changes to the real estate industry. He forecasts, “More housing inventory will show up later in the year because jobs in residential construction and for general contractors have been steadily rising. There are 314,000 more workers now compared to March 2020. It is a different story in commercial real estate, however, as there are 136,000 fewer workers in the sector and office buildings remain mostly empty. It appears many Americans took early retirement, as the labor force participation rate is a full one percentage point below what it was before COVID.”
We expect to continue to see positive numbers for the housing market and inventory to improve as we move along into peak housing season. Contact a REALTOR® today to assist you with your buying and selling needs.
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