The housing market showed little signs of slowing down as we entered 2022.
According to realtor.com®, homes sold in January faster than the start of any other year. While the pace slowed slightly from December 2021, buyers are still quite eager to find their new homes. The report found that the average home spent 61 days on the market in January, up from 54 days in December. However, compared to January 2021, when homes stayed on the market for 64 days and from Januarys 2017, 2018, 2019 and 2020, when homes stayed on the market an average of 83 days, it shows that limited inventory and hopeful buyers are still a major factor.
And limited inventory continues. Inventory of active listings was down 28.4% from January 2021 and inventory of all unsold homes (which includes pending listings) was down 17.9%. Compared to pre-pandemic levels, active listings were down 60.4%. In January 2022, new listings were down 9.1%.
Median home prices also continue to rise. The median price remained stable at $375,000 from December to January, but marks a 10.3% growth year over year. However, price increases in larger metros across the U.S. saw slower growth compared to other areas, just 6.1%.
Pennsylvania metros bucked some of the trends however. Pittsburgh continues to maintain its reputation as being one of the most affordable places in the U.S. With a median listing price of $210,000, home prices actually fell 13.8% year over year. However, inventory remains an issue, with active listings falling 12.4% and new listings dropping 10.2%. Homes are lasting slightly longer on the market at 79 days, down from 87 days from last January. In the Philadelphia region, home prices also fell below the national average at $300,000, falling 7.4% year over year. Active listings in the city are down 12.6%, while new listings are down 1.1%. Homes are spending about 65 days on the market, compared to 70 days a year ago.
“We’re forecasting a whirlwind year ahead for buyers and, if January housing trends are any indication, 2022 competition is already heating up. Homes sold at a record-fast January pace, suggesting that buyers are more active than usual for this time of year,” said Danielle Hale, realtor.com® chief economist.