As we settle into spring, it’s interesting to note that the year-over-year average sales price has increased by 20-21% in both March of ‘21/’22 and April ‘21/’22; the actual average sales price for March was $435,354 and for April was $469,065. An increase of $33,711 from one month to the next indicates that the market remains strong despite the limited inventory and rise in mortgage rates.
In a nutshell, the average days on market went down, the sold-to-list price went up, and the median year-over-year sales price went up. Inventory has increased slightly to 0.21 months, suggesting it took about 6.5 more days to see houses go under contract than in March. The number of homes sold in April reveals that only 52.8% were in the $200k-$499.9k range, with an uptick in the number of homes sold in the $500k+ range. This increase in purchasing higher-priced homes makes sense due to a sharp rise in the number of homes listed in the higher price ranges as well as increased demand for housing, resulting in competition and multiple offers among buyers.
As we look to the next few months, it’s expected that sellers will continue to list using the same strategies we’ve seen over the last year. However, as mortgage rates continue to rise there may be a reprieve in the higher-priced market, since buyers will not be able to afford as much house as when rates were lower. If that’s the case, while homes will still retain their value, we may see inventory rise, slowing and balancing the market a bit.