Market Insights :: 2022 Year in Review
In summary, the supply of active listings or the number of available homes for sale in 2022 was atypical of historic market dynamics.
Generally, the number of available homes for sale begins to build in January and February, usually reaching an apex by July or August. That didn't happen in 2022, as you can see from the graph displayed above. The supply of available homes for sale declined in February, rebounded some in March yet, plummeted in April and May. The spring real estate market was made especially difficult for homebuyers during this period of time as many competed with perhaps as many as 20-40 offers presented to sellers simultaneously.
Throughout the year, mortgage interest rates were climbing while home buyers feverishly attempted to navigate through an extraordinary sellers market.
The number of pending sales each month followed what I describe as a "typical" year.
The number of pending sales grew in the first part of 2022, with an apex in June. Typically, the apex of the Capital Region real estate market does not reach its apex until July or August.
As mortgage interest rates climbed through the year in 2022, home buyer activity began to level off early in June which then followed a more seasonal buying pattern.
In 2022, there were 15% fewer closed sales (8,245) compared with 2021 (9,662). Obviously, the rise in mortgage interest rates throughout 2022 had an impact on those totals.
"When is the Best Time of Year to Sell a Home?"
If you are a home seller, from a purely statistical point of view, the concise answer is December and January. The rationale behind the answer is there are fewer houses for sale during that period of time, therefore, less competition between sellers, the greater potential for a higher sale price. While there may be fewer buyers looking for a home during that period of time, there are always people who must buy a home due to leases maturing, people who recently sold their present homes and relocating employees who begin their new employment during the first part of the year.
For decades, the real estate industry has perpetuated the myth that the Spring is the best time of year for sellers to sell their home. Statistically, not so. Generally, there is a sharp increase in the number of houses for sale in the Spring, thus, increasing the competition between home sellers.
When is Best Time to Buy a Home?
From a home buyers point of view, generally, the Spring and early Summer months. This is the period of time when there is a swell of homes which enter the market as seen in the graph to the left above. Buyers will have a greater number of houses from which to choose with, generally, lessening competition for houses during that time.
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