TAMPA, Fla. (WFLA) – A study of the year-end and New Year housing market by real estate firm Redfin said that despite a record stock of homes for sale, the average price of a home had increased, as did the number of buyers.
In early 2022, Redfin reported that the number of active listings in the United States had fallen 27% from the previous year.
“We are starting another year with a large number of home buyers who have been looking for homes for months, and they are more excited than ever,” said Daryl Fairweather, chief economist at Redfin. “This month the stage will be set for the 2022 housing market, and we’ll be watching closely if prices rise as they usually do in January or start high and stagnate.”
Fairweather said the company is monitoring hot markets like Austin, Texas, where prices are rising and supply is tight, and homeowners’ interest in sales is increasing.
He also said that data reviewed by Redfin for various housing markets showed that home selling prices rose 14% over the past month, as did asking prices for new listings.
According to Redfin, the median home selling price rose to $ 358,460, while new homes started at $ 341,200. On top of that, the number of homes for sale fell 10%, but the company’s listing agents believe the number of listings could be set to rise.
The boiling real estate market is also accelerating home sales, with 29% of homes under contract accepting an offer to purchase in just the first two weeks, according to data from Redfin. At the start of 2022, mortgage applications were down 4%, according to Mortgage Bankers Association data.
At the same time, Freddie Mac, one of two federally backed mortgage companies, said interest rates had risen to 3.11% on 30-year home loans. the the company said rates would rise to 3.22% this week.
The interest rate hike in 2022 accompanies both the Federal Reserve accelerating the decline in pandemic stimulus buying and a series of previously announced interest rate hikes for the new year. What’s more, the rate on 15-year fixed-rate mortgages also rose from 2.33% to 2.43% this week.
As housing markets in the United States continue to see rent and mortgage prices rise, the latest formulas from the Federal Housing Finance Agency show an increase in loan size approval for potential buyers.
the FHFA loan limits for 2022 increased to mortgages of up to $ 647,000 for a single-family home, such as a single-family home. However, in higher cost markets, such as Los Angeles, the limit could be as high as $ 970,800. The most expensive markets represent about 100 of the country’s approximately 3,000 counties.
Higher prices are driving more mortgages as inflation and supply chain issues continue to push homeownership beyond the reach of early U.S. buyers. The cost increases are exacerbated by an expected increase in the cost of lumber, a basic material for building houses.
According to National Association of Home Builders, lumber prices are set to rise, pushing up the cost of lumber for the construction of a new single-family home by nearly $ 20,000. The organization has said in recent months that lumber prices have nearly tripled thanks to inflation and lingering supply chain problems.
NAHB said that “the price hikes have pushed up the average price of a new single-family home by more than $ 18,600,” resulting in “price hikes” that are hurting affordability and “disrupting the housing market.” .
The FHFA also announced higher fees on high balance loans and second mortgages starting in April 2022. Increased fees on deliveries and acquisitions are expected to “minimize disruption to the market and pipelines” .