Where Are All the Listings? Maybe 2021 Knows

Mar 02, 2022

The 2022 real estate market has started off with a bang. Multiple offers are the norm, rather than the exception, which feels very much like 2021. In fact, our most recent Market Expectations Survey found that 47.9% of agents thought the spring market feels just like spring 2021.

The most common question we hear from buyers is, "Where are the listings?" Well, maybe 2021 can provide some insight! We looked back to see when most listings came on the market in 2021 and were surprised to see just how few came on in January and February.

In February 2021, only 2775 listings hit the market. In March, that number jumped to 4505, then to 5022 in April, 5671 in June, with a peak of 5671 in July. If 2022 behaves the same as 2021, we'll see roughly twice the number of listings hit the market each month from Mar-July that we saw in February. In February 2022, we saw 2783 listings hit the market, which is incredibly close to 2021.

What about Sold Price and Competition?

The Average Sold Price in the Metro Area saw a huge gain of +30.9% in 2021. The biggest increase was the jump in Q1 at roughly +14.3%; Almost half of the annual gains. The first half of the year saw +21.5% gains. This means that the increase in prices happened largely in the first half of the year, with less dramatic increases the second half.

Inventory remained low (and firmly in seller territory) throughout the year, but it was at its absolutely lowest during the "busy months" from March to August. This seems counterintuitive because these are the months where more units hit the market, right? These are also the months with the highest buyer activity, so while the new units were entering the market, the buyers gobbled them up just as quickly.

What does this mean if I'm a buyer?

January and February are always really frustrating for buyers. Motivated buyers typically enter the market right after Christmas, but sellers are usually a couple of months behind with their new listings. Especially in this market, sellers are under very little pressure, and it's more convenient for them to list when they leave for Spring Break or after school is out. Buyers will see more units hit the market, which means more options, but it will still be heavily competitive. If 2022 behaves the same as 2021, we'll continue to see prices climb the first half of the year before calming somewhat the second half of the year.

What if I'm a seller?

You're in a great position right now. It's certainly a great time to list right now, but (barring any unexpected catastrophe) you'll be in great shape a month from now or later in the year. This time of the year is the most fun to be a seller because of the low inventory and high demand, so your experience will be excellent in the spring and early summer. However, you can still sell in the summer and expect to see great prices, but possibly with less (or without) multiple offers.

Always bear in mind that real estate is hyperlocal and hyper-situational so please reach out to us if you have questions over your specific market or situation. We’d absolutely love to help!