Home Price Growth Continues At A Double-Digit Pace, Las Vegas Saw 35.3% Year-Over-Year Growth
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In January 2022, the typical U.S. home sold faster than in any prior January, according to the Realtor.com Monthly Housing Report released recently. The typical U.S. home spent 61 days on market in January 2022, 10 days less than last year and nearly a month (-29 days) faster than the typical 2017-2020 pace.
Demand continues outpaced supply in January, the U.S. median listing price held hear record-highs at $375,000 for the second month in a row and continued to rise at a double-digit annual pace.
Limited inventory creates challenges for buyers and prospective sellers alike
While 2022 is forecasted to be a seller's market, annual home price growth is expected to moderate from the 2021 pace. This is partly due to looming rate hikes, which will cut into buyers' ability to meet high asking prices and have already begun to rise more quickly than anticipated. Listing price data is already showing some loss of momentum, as the acceleration was smaller in January over December compared to December over November. Still, the affordability of monthly housing costs will increasingly challenge buyers – especially first-timers, who typically have less flexible budgets and face the added financial burden of skyrocketing rents.
Las Vegas Saw 35.3% Annual Home Price Increases to an Average Home Median Price of $460,000
Listing prices grew at a double-digit annual pace in the southern (+11.2%) and western (+10.0%) regions, which dominated the top 5 list of markets with the biggest annual home price increases: Las Vegas (+35.3%), Tampa, Fla. (+28.7%), Austin, Texas (+28.2%), Orlando, Fla. (+25.0%) and Miami (+24.8%).
"Homes sold at a record-fast January pace, suggesting that buyers are more active than usual for this time of year," said Realtor.com® Chief Economist Danielle Hale. "But it's a different story on the other side of the closing table, with new seller listings continuing to decline in January. Factors like Omicron uncertainties could be causing sellers to hesitate even when they know housing conditions are favorable. Another key barrier is the inventory 'chicken-and-egg' dilemma that may vex sellers who are also buying: Do you list now when home shoppers are hungry for more options, or do you wait for more inventory to hit the market in the spring? Ultimately, only you know the best time for your family to make a move, but preparation is key to acting quickly when the right opportunity comes along."
Source: Realtor.com
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