2021 Year In Review Market Update
The 2021 Housing Market is in the books and a record breaking year it was. Home prices, rental rates, and lumber prices are at record highs while interest rates and housing inventories are at record lows. I don’t know about you, but my year was seeing empty store shelves, waiting until the next Yellowstone and Ted Lasso shows to drop, celebrating the Braves and the Bulldogs national championships, and realizing I just wasted 45 minutes watching TikToK. Anyway, I’m Bonnie Mullinax with the Mullinax Team at Keller Williams and I’m discussing the 2021 housing market and predicting the 2022 market on this episode of House Calls With Bonnie.
Let’s quickly look at the National Market. Last year was the best year on record since 1982. Home sales were brisk and increased 15.1 % to 6.49 Million homes while median home prices shot up a whopping 19.9 % to an average of $404,700. This has been driven by a combination of record low interest rates, low inventory, and home buyers relocating because of the pandemic.
Locally, home sales increased only 4.6% to 1634 homes, however, the median home price increased an incredible 23.4% to $289,900. Not only did we see the low interest rates and inventory driving up prices, but we also saw buyers fleeing higher priced Metro Atlanta for the more attractive priced homes here in Bartow. The Bartow labor market is also growing as many new industries have located here. But one of the main drivers we saw was the large number of homes bought by investors buying homes for cash and outbidding owner occupied buyers. These homes were typically 3, 4, and 5 bedroom homes under $275,000 and are bought to hold long term and rent and not for resale.
With all these driving forces, we are seeing the availability of affordable housing, homes under $200,000 rapidly disappearing. Availability of these homes dropped 46% last year and 62% from just 2 years ago. At the time of this posting, there were NO three bedroom homes that were under $200,000 available to purchase in the entire county that were not either mobile homes or townhomes.
We also saw homes stay on the market for a much shorter period of time. The median days that a home stays on the market dropped from 18 days to just 6 days. Yes you heard me right. Most homes sell in less than a week. The only thing that sells out faster than a home in Bartow County --- is toilet paper!
So what do we see for 2022? We do see much more of the same, just not at the same pace. Prices will continue to rise, inventory will be low and houses will not stay on the market long, just not at the same crazy rate. Things to watch this year that will affect the housing market. Rising interest rates, inflation, and any major disruption in the economy. The Fed has already indicated 3 rate increases and inflation is at a chart topping 7%. This will slow home price increases but will not start a downturn. Don't expect a drop in home prices any time soon as we believe only a major unforeseeable economic hit will be able to drop home prices.
Don’t hesitate to call us to find out what your home could sell for in today’s market and learn about the many different ways we have to sell your home. For more nerdy data, visit our blog at mullinaxteam.com and feel free to like, share, and comment on this video and I look forward to connecting with you soon.
Statistic 2020 2021
Active Listings 182 198
Sold Price - Average $269,970 $307,938
Sold Price - Median $235,000 $289,900
Price/Sq Ft $133 $185
Total Sq Ft - Average 2030 1664
Days to Sell - Average 40 18
Days to Sell - Median 18 6
Months of Inventory 1 1
# of New Listings 1739 1860
# of Sales 1563 1634