Happy holidays from all of us here at Van Poole Properties Group! With the year winding down, lets take a look at some current trends, and what we may have in store for 2022.
As you can see in the charts below, new homes on the market, contracts written, and inventory are all continuing to trend downward. As we’ve mentioned in past market updates, at a glance, these trends align with what we typically see around this time of year.
While the effects of seasonality are present, another key consideration that has the potential to create change in our market is affordability. It’s no secret that prices have increased dramatically over the past 12 months. From January to June, our market saw a greater increase in average price per square foot than it had experienced in the previous two years combined.
Over this 6 month period, the average price per square foot was increasing by an average of $5.20 per month. On a 2,500 square foot home, that’s an average increase of $13,000 per month!
Without a similar jump in wages, issues regarding affordability were inevitable. Recently though, price growth has slowed, a welcomed sight to many.
In the recent months of July through October, we’ve seen growth slow down to an average increase of $1 per square foot each month. Looking ahead to 2022, CoreLogic Deputy Chief Economist Selma Hepp was quoted in an article published today by The Dallas Morning News saying the following:
“There is still low availability of for-sale homes, which continues to drive price growth, but the competition has faded and assuaged some of the bidding war intensity,” she said. “Overall, home price growth is likely to continue slowing over the next year.”
Could 2022 bring a more balanced market? Are we already be seeing the shift? Only time will tell. We’ll keep you posted on any key market trends or potential shifts in the months ahead. If you have specific questions about buying or selling, our team is standing by to assist you!
Have a great holiday season!