RE/MAX National Housing Report for December 2021

DENVER, January 19, 2022 /PRNewswire/ — Nearly record-breaking home sales in December cemented 2021 as the busiest year for home sales in the report’s 14-year history, while also setting records for the smallest inventory and highest average home prices. On an annual basis, 2021 ended with nearly 10% more home sales than the previous record year of 2020.

In the 51 metro areas of the report December 2021 Home sales were the second-highest for the month in report history, only behind December 2020. Despite strong home sales, December sales defied recent monthly moves. December 2021 Home sales were down 0.8% from November, an unusually large amount. In contrast, the average change from November to December for the five-year period from 2015 to 2019 was a 3.5% increase.

“December has been a fantastic year for home sales. After a busy 2020, we expected 2021 to be even better – and it was,” he said Nick Bailey, President and CEO, RE/MAX, LLC. “Buyers shrugged off all sorts of obstacles — high prices, record-low inventories, fierce competition for available deals — and kept things going year-round.”

“The story of housing construction in 2021 has been one of high demand, which led to a significant increase in sales despite extremely low supply. What’s promising for 2022 is that many of the factors that led to record sales in 2021 will remain in place. Interest rates are still attractive, job flexibility continues and many homeowners are left with a mountain of equity. As more of them become sellers, there is every reason to believe that the hot streak will continue. The last two years have proven that buyers are out there and ready to go.”

December property transactions could have been even stronger had it not been for record low inventories. 2021 ended with the lowest number of homes for sale in the report’s 14-year history. Inventories in December were down 23.6% from November – the previous record low – and down 33.3% year-on-year. The 10 months with the lowest inventory levels in reporting history are all in 2021.

December’s 1.2 month inventory was an all-time low, beating the set reporting record May 2021. A year ago there was two months supply of inventory. Properties spent an average of 31 days on the market in December – two more than in November, but seven fewer than a year ago.

At the same time, December median selling price of $335,000 rose 1.4% over November and 11.5% yoy. The November-December increase is slightly above the 1.2% average for the five-year period 2015-2019. While the highest average selling price of the year is usually reached in early or mid-summer, it’s October $340,000 was the highest in 2021 and in the history of the report.

Highlights and leading local markets for various metrics in December include:

Completed Transactions
Of the 51 metropolitan areas surveyed in December 2021, the average total number of home sales fell compared to 0.8% November 2021, and by 6.9% compared to December 2020. The markets with the largest year-over-year sales decline were San Francisco, CA at -21.9%, Manchester, NH at -17.6% and Atlanta, GA at -17.1%. Leading the percentage increase in sales year-over-year Wilmington/Dover, DE at +8.9%, Settlements, MT at +8.3% and Boise, I.D at +8.2%.

Completed Transactions:

5 markets with the biggest year-over-year declines

market

December 2021

transactions

December 2020

transactions

year for year
Year %
change

San Francisco, CA

4,612

5,903

-21.9%

Manchester, NH

519

630

-17.6%

Atlanta, GA

7,906

9,539

-17.1%

San Diego, CA

2,904

3,472

-16.4%

Augusta, ME

653

755

-13.5%

Median selling price – Median of 51 Metro median prices
In December 2021, which was the median of all 51 subway median retail prices $335,000, up 1.4% compared to November 2021, and up to 11.5% of December 2020. No metro area saw a year-over-year decline in median sales price, while 32 metro areas increased by double-digit percentages year-on-year, led by Phoenix, AZ at +28.4%, Tampa, FL at +25.7% and Raleigh-Durham, NC at +25.3%.

Average selling price:

5 markets with the largest year-over-year increases

market

December 2021

Average turnover
price

December 2020

Average turnover
price

year for year
Year %
change

Phoenix, AZ

$430,000

$335,000

+28.4%

Tampa, FL

$335,000

$266,490

+25.7%

Raleigh-Durham, NC

$390,900

$312,000

+25.3%

Las Vegas, Nevada

$399,800

$320,000

+24.9%

Salt Lake City, Utah

$494,500

$398,942

+24.0%

Days on Market – average of 51 metro areas
The average days in the market for houses for sale December 2021 was 31, two days higher than the average in November 2021, and seven days less than the average in December 2020. The metro areas with the lowest Days on Market were Nashville, Tennessee with 13, Cincinnati, OH with 16 and Omaha, nope at 18. The highest Days on Market averages were in DesMoines, IA at 92, Miami, Fla with 76 and New York, NY at 71. Days on Market is the number of days between the initial listing of a home in an MLS and the signing of a sales contract.

Days at the market:

5 markets with the largest year-over-year increases

market

December 2021

days on
market

December 2020

days on
market

year for year
Year %
change

Boise, I.D

35

19

+84.2%

Washington, D.C

27

25

+8.0%

Wichita, K.S

27

25

+7.7%

Burlington, VT

39

38

+1.3%

New York, NY

71

71

0.0%

Months of Inventory Supply – Average of 51 metro areas
The number of homes for sale in December 2021 fell by 23.6% November 2021 and down 33.3% from December 2020. Based on the rate of home sales in December 2021, inventories in months decreased to 1.2 versus 1.4 in November 2021, and decreased compared to 2.0 inches December 2020. A six-month supply indicates a market that is evenly balanced between buyers and sellers alike. In December 2021, of the 51 metro areas surveyed, zero metro areas reported a monthly supply of at or above six, which is typically considered a buyer’s market. The markets with the lowest monthly supply of inventory were Salt Lake City, Utah at 0.4 and a three-way tie in between Albuquerque, New Mexico, Denver, CO, and Seattle, WA at 0.5.

Months supply of inventory:

5 markets with the biggest year-over-year declines

market

December 2021

months
supply of
inventory

December 2020

months
supply of
inventory

year for year
Year %
change

Albuquerque, New Mexico

0.5

1.6

-68.8%

Miami, Fla

1.9

5.8

-67.2%

Hartford, Connecticut

0.8

2.2

-63.6%

Providence, R.I

1.1

2.9

-62.1%

Orlando,FL

0.9

2.2

-59.1%

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Via the RE/MAX network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in more than 8,600 offices in more than 110 countries and territories. No one in the world sells more real estate than RE/MAX as measured by residential transaction pages. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture that offers its agents and franchisees the flexibility to conduct their businesses with great independence. RE/MAX agents have lived, worked, and served in their local communities for decades, raising millions of dollars each year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, search housing listings, or find an agent in your community, please visit www.remax.com. For the latest RE/MAX news, visit news.remax.com.

description
The RE/MAX National Housing Report is distributed on or about the 15th of each month. The first report was distributed in August 2008. The report is based on MLS data in approximately 51 metro areas, includes all types of residential property and is not annualized. For maximum representation, many of the largest metro areas in the country are represented, and an attempt is made to include at least one metro from each state. Metro area definitions include the counties designated by the US government’s Office of Management and Budget, with some exceptions.

definitions
Transactions are the total number of residential transactions completed during the specified month. Months Supply of Inventory is the total number of residential properties listed for sale at the end of the month (current inventory) divided by the number of sales contracts signed (pending) during the month. Where “pending” data is not available, this calculation is based on closed transactions. Days on Market is the number of days that elapse from the time a property is listed until the property is under contract for all residential properties sold during the month. The median selling price is the median of the median selling prices in each of the metro areas included in the survey.

MLS data is provided by contracted data aggregators, RE/MAX brokers, and regional offices. Although MLS data is believed to be accurate, this cannot be guaranteed. MLS data is constantly updated, making each analysis a snapshot at a specific point in time. Each month, the RE/MAX National Housing Report recalculates data from the previous period to ensure accuracy over time. All raw data remains the intellectual property of each local MLS organization.

SOURCE RE/MAX, LLC