The year finished with nearly 10% more home sales than the previous record year of 2020
The data is in and strong December home sales crowned 2021 as the busiest year for homebuying in the 14-year history of the RE/MAX National Housing Report. According to the latest report, which measured 51 metro areas, December 2021 home sales were the second-highest for the month in report history, trailing only December 2020. In fact, there’s evidence to suggest December home transactions could have been even stronger had it not been for record-low inventory.
Contributing to the craze, the year 2021 ended with the smallest number of homes for sale in the 14-year history of the report. The 10 months with the lowest inventory in report history all occurred in 2021. Based on the rate of home sales in December 2021, the Months Supply of Inventory decreased to 1.2 compared to 1.4 in November 2021, and decreased compared to 2.0 in December 2020. For context, a six months supply indicates a market balanced equally between buyers and sellers.
The ups and downs of the housing market since the onset of the pandemic in early 2020 have proven one thing: homebuyers are resilient – and those who are able to get in the game have wasted no time. Nick Bailey, President and Chief Executive Officer of RE/MAX, LLC, thinks the hot streak is likely to continue into 2022 but is hopeful more sellers come off the fence to alleviate some of the challenges buyers have been facing for years.
“December capped a fantastic year for home sales. After a busy 2020, we expected 2021 to be even better – and it was. Buyers shrugged off all sorts of potential obstacles – high prices, record-low inventory, stiff competition for available listings – and kept things rolling the entire year.”
Adds Bailey, “The story of housing in 2021 was centred around high demand that led to a substantial increase in sales despite ultra-low supply. What’s promising for 2022 is that many of the factors which drove record sales in 2021 remain in place. Interest rates are still attractive, workplace flexibility continues, and many homeowners are sitting on a mountain of equity. If more of them become sellers, there’s ample reason to think the hot streak will continue. The past two years have proven that buyers are out there and ready to go.”
Courtesy RE/MAX Canada