By the Numbers
“December saw sales retreat, but the pull back was more a sign of supply constraints than an indication of a weakened demand for housing.” — NAR chief economist Lawrence Yun
While multifamily starts surged 13.7% compared to November, the pace of new single-family housing construction slid 2.3%, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
“While lean existing home inventory and solid buyer demand are supporting the need for new construction, the combination of ongoing increases for building materials, worsening skilled labor shortages and higher mortgage rates point to declines for housing affordability in 2022.” — NAHB Chairman Chuck Fowke
“MBA expects solid growth in purchase activity this year, as demographic drivers and the strong economy support housing demand,. However, the strength in growth will be dependent on housing inventory growing more rapidly to meet demand.” — Mortgage Bankers Association associate vice president of economic and industry forecasting Joel Kan
At the same time, the average 30-year fixed-rate mortgage rose to 3.33%, its highest level since April 2021, the Mortgage Bankers Association said.
Phoenix, followed by Tampa, Fla., and Miami, claimed the largest price gains among the 20 metro areas in the index. according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
Texas gained more residents than any other state between July 2020 and July 2021, according to recent U.S. Census Bureau data.
“There was less pending home sales action this time around, which I would ascribe to low housing supply, but also to buyers being hesitant about home prices,” National Association of REALTORS® chief economist Lawrence Yun said.
The median sales price of new homes hit a new high of $416,900.
HomeAdvisor recently analyzed real estate listings in 10 of the hottest housing markets in 2021 to determine the top five cities that saw the highest return on investment (ROI) from home renovations.