The important stats you need to know about the 2022 housing market.
2022 has officially wrapped up, and what a crazy year it was. We saw things like historically low interest rates, houses selling for well over the appraised value, inspections being waived, homes getting multiple offers, and so much more. The real estate industry was a very different ball game! To help make sense of it all, I am going to break down the months for you.
January, February, and March were more neutral months, where days on market ranged from five to 14 days, the median sales price was around $170,000, and the sales-to-list-price ratio was 99% to 101%. In April, things started to pick up as days on market decreased, the median sales price jumped to over $199,000, and the sales-to-list-price ratio was over 103%.
May and June were the hottest months, where the average number of days on market was between five and seven days, the median sales price was between $205,000 and $217,000, and the sales-to-list-price ratio was 104%.
“The game has changed, so you need to know how to explain that information to your clients.”
This is when the market shift started to occur. Interest rates rose over 5% (and over 7% by the end of the year), days on market went up, and the median sales price and sales-to-list-price ratio went down. If you would like to see a full month-by-month breakdown of the stats in 2023, as well as the trends in mortgage rates over the years, you can access that by clicking here.
As we enter 2023, a lot of agents are wondering where things will go from here. You should know that it is very important in today’s climate to educate your buyers and sellers. For example, they should know that interest rates aren’t as low as they were recently, but they are still below the average rate since 1971, which is just over 7%.
The game has changed, so you need to know how to explain that information to your clients. I’ll explain how to do that in my next video. Until then, know that you can call or email me with any questions that you have. I look forward to hearing from you!