New Home Sales Up in January [Infographic]

January 2022 Housing Market Report: What You Need to Know

Hey there, future real estate tycoons, curious homeowners, and everyone just trying to understand what the heck is going on with houses right now! Let’s break down what the housing market looked like as we kicked off 2022 — and don’t worry, we’ll keep it simple, a little fun, and throw in some real talk along the way.

Home Prices: Still Going Up (Because Why Not?)

So, let’s get the big one out of the way: Home prices were still climbing like that one uncle who keeps adding extra layers of cheese to his pizza — it just never stops.

• The median home list price in January 2022 was $379,450.

• That was a 10.33% increase from January 2021.

• Prices dipped slightly from the $380,000 range in late 2021, but nothing major.

What does that mean for you? Well, if you were hoping homes would get cheaper, sorry — not yet. Houses are still expensive. But hey, at least they’re not asking for your firstborn child… yet.

Housing Supply: Where Did All the Houses Go?

Imagine showing up to a party, but all the pizza is already gone. That’s kind of what happened with houses in early 2022.

• There were 882,220 total listings in January 2022.

• That’s down 17.91% from January 2021.

Translation: There weren’t a lot of homes on the market. Supply was tight, which meant if you found a house you liked, you had to act fast — like, ninja-level fast.

New Home Purchases: People Were Still Buying

Even though prices were climbing and there weren’t a ton of houses, people were still buying.

• 811,000 new homes were purchased in December 2021.

• That was up 11.9% from November 2021.

So, while some folks were saying, “Maybe I’ll wait until prices drop,” others were out there buying like it was Black Friday.

Existing Home Sales: A Little Slowdown

On the other hand, sales of existing homes (a.k.a. not brand-new ones) slowed down a bit:

• 6.18 million existing homes were sold in December 2021.

• That was down 4.6% from November 2021.

Why the dip? Could be holiday exhaustion. Could be that people were distracted by Netflix and leftover turkey sandwiches. Who knows?

Homes Selling Faster Than Ever

Here’s a wild one: Homes were flying off the market faster than free donuts at work.

• The median days on market in January 2022 was 61 days.

• That’s 14% faster than the same time in 2021.

In other words, if you found a house you liked and thought, “I’ll sleep on it,” someone else probably put in an offer while you were brushing your teeth.

Mortgage Rates: Going Up, Up, Up

Remember when mortgage rates were so low you could practically borrow money for free? Yeah, those days were starting to fade.

• The 30-year fixed mortgage rate hit 3.69% by early February 2022.

• That was up from the comfortable low 3% range we had gotten used to.

This matters because higher rates = higher monthly payments. If you were on the fence about buying, this was a little nudge to get moving.

What This All Means for You

Let’s be real. All these numbers can make your head spin, so here’s the bottom line:

• If you were buying: You had to move fast. Houses were selling quickly, and rates were creeping up, meaning waiting could cost you more.

• If you were selling: It was a good time to sell. Homes were going fast, and prices were high.

• If you were waiting: You might be kicking yourself. Prices weren’t coming down, and mortgage rates were rising.

Tips to Survive the Market

1. Get pre-approved: Know what you can afford before you fall in love with a house.

2. Move quickly: If you find a house you like, don’t overthink it.

3. Work with a pro: A good real estate agent can make all the difference.

4. Budget for rate increases: Mortgage rates were climbing, so be prepared for a slightly higher payment than you hoped.

5. Don’t panic: Yes, the market was wild, but buying a home is a long-term play. Stay calm and make smart choices.

Looking Ahead

While we don’t have a crystal ball, the signs in early 2022 pointed to more rising interest rates, tight supply, and continued high prices. If you were waiting for things to get cheaper, you might be waiting a while.

So, whether you were buying, selling, or just watching from the sidelines, one thing was clear: The housing market was not slowing down anytime soon.