Spoiler alert: It’s a great time to sell.
The housing market is still red hot — and economists say it could remain that way for years to come. Here’s a look at the latest housing data and what it means for you:
By the numbers:
The median price of an American home in 2021 was $346,900, up nearly 17 percent from the year before. That’s the highest increase since 1999, and still, more than 6 million existing homes were sold last year — the most since 2006, according to data published by the National Association of Realtors. Meanwhile, inventory has hit an all-time low.
Housing experts say these conditions — rampant demand and paltry supply — are likely to continue for some time, meaning home prices will continue to tick up.
“It’s not a bubble, it really is about the fundamentals,” Jenny Schuetz, a housing researcher at the Brookings Institution, told the New York Times.
What that means for first-time buyers:
It’s not good news. Although rising mortgage rates and more housing construction could help slow the rise in home prices, first-time buyers will still find it “very, very difficult to get a home in the next two, three years,” Mark Zandi, the chief economist at Moody’s, told the NYT.
The forecast is especially grim for working-class families, who may be priced out for another five to 10 years, another economist said.
Buyers may have more luck snatching up a home that’s already built. Data from the end of 2021 shows that while the median price of existing homes was up by 13.9 percent last year compared to the year prior, new construction houses saw an even bigger spike in price at 19 percent.
What this means for homeowners:
In just one year, from 2020 to 2021, the typical American homeowner saw their property appreciate by $50,200.
“That is a sizable wealth gain for homeowners across the country,” NAR’s chief economist Lawrence Yun told CNN.
If you’re looking to cash in on all that equity, this could be a great year to do it. Inventory on the market is even tighter now than it was heading into spring 2021, meaning your property likely won’t face a ton of competition from other sellers. And considering that the market was so hot last summer that buyers were paying hundreds of thousands of dollars over asking (even as much as $1 million!), you could stand to make a pretty penny if you’re in the place to sell. If unloading your home is in your plans for 2022, this guide from real estate company Redfin lays out everything you’ll need to do to make a great deal.
