It’s been another big year for the US housing market and it doesn’t look like it’ll be slowing down in 2022. As housing inventory continues to dwindle, home prices are still rising and buyers in most markets across the country are feeling the pressure. So how have states in Ribbon’s markets fared this year and what does this mean for buyers, sellers, and agents in 2022? Let’s dive in.
Home prices in North Carolina continue to climb amid a limited inventory.
In October, there were only 4,067 homes for sale in Charlotte. This is a 37.3% decrease from the same period last year. Meanwhile, the average home price has increased since 2020, by 9.7%. Homes are now selling for an average of $388,987 and they’re selling quick—34.6% faster. This means the typical home is only on the market for 17 days before its sale, down from 26 in 2019.
Similar trends are seen north, according to the Triangle MLS. The average home price for the entire region is up 18% year-over-year with homes selling for an average of $413,803. Homes are only sitting on the market for 10 days before sale and housing inventory has plummeted — down 38.5% since last October with only 0.8 months of supply.
Meanwhile, South Carolina’s home sales have experienced a slight cooling in recent months, although they’re still well above the national average. Affordability has been the biggest cause for concern among buyers. Median home prices were also up 11.5% at $282,000.
The state’s yearly closed sales were up nearly 15% over 2020. The coastal regions, which typically lead in sales, have started to decline while the Greater Columbia area has seen an increase of 11% in sales. This slight decrease might be because there isn’t much left to sell. Inventory also shrank 31%, pending sales are down 13.1%, and new listings were down 1.4% compared to September 2020.
Texas has seen similar market trends this year. Statewide, the median price has gone up 16.9% in the third quarter to $310,000. There is now only 1.6 months of inventory compared to 2.3 in the third quarter of 2020. However, there’s also been some market cooling. Closed sales are down 3.5% and active listings are down 18.2%. The typical home sits on the market for 26 days with 39 days to close. This makes 65 total days on market, 24 days less than the same quarter last year.
Tennessee is experiencing affordability and a lack of inventory issues, similar to South Carolina. The average sales price is $254,415, up 15.5% compared to the previous year. But as of November, there were only 1,150 houses on the market, down 22.4% since 2020.
This has led to the market cooling as the number of closed sales and new listings have gone down in recent months. There were only 741 closed sales in November, down 4.3%, and 686 new listings, down 4.9% compared to last year.
The average home has been selling at $483,685 in October, a 12.9% increase from the year before. Approximately 8,256 of home transactions were paid with cash, up 25.4%. It’s a difficult market, especially since there’s been a huge decline in inventory. There are only 1.3 months of housing inventory, down 38.1%. Pending sales and new inventory are down 3.6% and 3.5%, respectively. As of now, there are only 36,943 active listings, down 29.9% compared to last year.
In the state of Alabama, home sales decreased 7.8% in October year-over-year from 6,889 to 6,350 closed transactions. Following seasonal trends, sales went down 8.8% from September but increased 11.4% compared to last year. October listings have gone down 4.5% from September and 24.8% year-over-year. Even so, Alabama’s housing inventory has been improving slightly. At the current pace, there are 1.7 months of inventory in October, up from 1.6 in September. This is still well below a “healthy” inventory. So statewide median sales price have also gone up. October was $221,909, an increase of 11.3% from 2020 and an increase of 0.9% from September.
Georgia’s housing market remained hot well into the fall. New listings and inventory saw declines while home prices surged. New listings were down slightly, decreasing 5% to 15,898 while pending sales increased by 1% to 14,475. The average sales price increased 15% to $365,158 from 2020. Inventory levels shrank massively, down 24% to 20,511 units and October’s supply of inventory was down 30% to 1.4 months.
While there have been small signs of cooling, its been unable to make a dent in the historic increases we’re seeing across the country. High demand for housing and limited inventory continue to push up the average price of housing, making affordability a big challenge for buyers, especially first-timers.
The 2022 housing market will likely remain competitive as new sellers enter the market and we regain inventory. This means buyers need to make their offers stand out to win their dream home. Ribbon can help.
Our RibbonCash Offer is a non-contingent offer backed by Ribbon’s cash. So buyers can pay all cash in multiple offer situations. Sellers can also take advantage of Ribbon’s buy before you sell program, allowing you to buy your dream home before selling your current home. A win for everyone in such a hot market.