Extreme buyer demand combined with low inventory in the spring of last year to create bidding wars that drove average price from $256k in January to $319k by June. The market settled over the second half of the year as the arrival of fresh listings slowed and as vaccines kicked in and allowed buyers to return to being busy with the distractions of life.
Expect a similar market pattern of buyer competition and bidding wars this year as inventory levels are roughly 15% lower than last year and carryover buyers who didn’t get what they were looking for last year are committed to not letting another one get away this year. Buyers are also motivated by rising interest rates which are likely to be even higher in the near future. Higher interest rates reduce affordability.
Expect rapid growth in spring prices followed by a similar leveling as seen in the second half of 2021. Anyone who is looking to buy or sell would do well to do so sooner, rather than later.