In 2021, existing-home sales rose 8.5% during 2020, the highest level since 2006 as supplies of homes for sale fell to an all-time low of 910,000, equivalent to 1.8 months of available inventory.In
Decreasing Demand or Supply Constraints?
Dated: April 27 2022
Views: 64
In 2021, existing-home sales rose 8.5% during 2020, the highest level since 2006 as supplies of homes for sale fell to an all-time low of 910,000, equivalent to 1.8 months of available inventory.
In December 2021, housing sales declined 7.1% over December 2020. The National Association of REALTORS (NAR) explained that the dip was likely due to supply constraints over decreasing demand from homebuyers. Employment in December rose by nearly 200,000 and the unemployment rate was 3.9%. Also favoring homebuyers, salaries rose 4.7% year-over-year, even while those gains were countered by the highest rate of inflation since 1982, a 7% increase from 2020.
The cost of housing, including owner-occupied and rented homes, rose 4.1%, the fastest rate since 2007. Meanwhile, the U.S. Bureau of Labor Statistics reported that building costs rose nearly 19% in 2021 which slowed construction, along with materials and labor shortages. For these reasons, the housing industry is unlikely to increase supplies of new homes by only 2% in 2022, which will make existing homes more coveted.
Homeownership is an excellent hedge against inflation, primarily because buying a home at a fixed price and interest rate where it applies. While home prices and interest rates continue to rise, the cost of housing decreases as long as the homeowner retains the property.
With signs positive that housing demand will continue, NAR predicts that mortgage interest rates will stay under 4% and that home prices will rise 3% to 5% by the end of 2022.
Latest Blog Posts
Well, spring is upon us. In my line of work, that means one thing: people are about to get serious about real estate.Buying a house is an exciting event, but a lot of people are struggling to find
There's a lot going on in real estate these days, as you've probably noticed.If you're a homeowner and you've been watching real estate news you may be considering selling your property. Now is a
Whether you’re looking to buy or sell, we can offer the highest levels in real estate expertise and professionalism. Don't hesitate to contact us to help guide you through the process.Now is a
The data relating to real estate for sale on this website comes in part from the IDX Program of Garden State Multiple Listing Service, L.L.C. and Berkshire Hathaway HomeServices Signature Properties. Real estate listings held by other brokerage firms are marked as IDX listing. Information deemed reliable but not guaranteed. Copyright © 2022 Garden State Multiple Listing Service, L.L.C. All rights reserved. This information is being provided for Consumer's personal, non-commercial use and may
The data relating to real estate for sale on this web-site comes in part from the Internet Listing Display database of the CENTRAL JERSEY MULTIPLE LISTING SYSTEM, INC. Real estate listings held by brokerage firms other than this site-owner are marked with the ILD logo. The CENTRAL JERSEY MULTIPLE LISTING SYSTEM, INC. does not warrant the accuracy, quality, reliability, suitability, completeness, usefulness or effectiveness of any information provided.
The information being provided is for consumers'
All information is believed to be accurate but is not guaranteed. Protected by Copyright© 2022 and is owned either by the Monmouth County Association of REALTORS; or by the developers of the software, Kunversion, LLC. All rights reserved. Each office independently owned and operated.
The New Jersey Real Estate Commission requires every licensed broker or salesperson with whom you list your property to give you a copy of this notice. The purpose is to help you comply with the New Jersey Law
