It is official, Punxsutawney Phil has seen his shadow and we are looking down the scope of what is expected to be a long winter in the CSRA. Unfortunately for us, this rings true for real estate as well.
I know we all hoped for a reprieve from the crazy market, but today’s statistics continue to be heavy-handed against buyers. The first big hit was an interest rate hike for the VA and FHA loan products. We are seeing these rates starting to hit over 4%.
I have compiled a little historical comparison of the January 1 – February 3 stats over the last 3 years to help the buyers and sellers see why there is a race to buy just about any home that is priced right.
First off, here are the statistics for how many NEW LISTINGS hit the market. This is every type of property, everywhere in the CSRA.
+ January 1, 2020 – February 3, 2020 – 1251 properties hit the market.
+ January 1, 2021 – February 3, 2021 – 1160 properties hit the market.
+ January 1, 2022 – February 3, 2022 – 716 properties hit the market.
Looks like we are short on inventory from housing, to groceries and everything in between!
Now on to pending sales. 2022 has me flabbergasted!
+ January 1, 2020 – February 3, 2020 – 794 properties went pending sale.
+ January 1, 2021 – February 3, 2021 – 1001 properties went pending sale.
+ January 1, 2022 – February 3, 2022 – 907 properties went pending sale. *** Notice this shift to more than have listed ***
Please note, that you have not missed the “bubble” and I honestly think “bubble” is an inaccurate description of what is happening here in our Real Estate market. I think maybe we should consider it an economic “boom.”
For reference, here is an online definition I found to describe an economic boom. “Booms also run the risk of high inflation. That happens when demand outstrips supply, allowing companies to raise prices. A boom starts when economic output, as measured by GDP, turns positive. … They are buoyed by better jobs, rising home prices, and a good return on their investments.”
It may be time to stop thinking we are in a bubble that will soon pop, and start planning for a boom that could benefit some, but definitely not all.
In conclusion, I will leave you with the closed statistics.
+ January 1, 2020 – February 3, 2020 – 674 properties closed.
+ January 1, 2021 – February 3, 2021 – 840 properties closed.
+ January 1, 2022 – February 3, 2022 – 928 properties closed.