Realtor.com® December Housing Report: 2021 Homebuying Frenzy Concludes with Double-Digit Price Growth

Rhea-AI Summary

Realtor.com's December 2021 Housing Report reveals that U.S. home listing prices surged back into double-digit growth, reaching a median of $375,000. This marks a 10% increase from December 2020. Buyer competition is intensifying as mortgage rate hikes loom, pushing buyers to act quickly despite a 26.8% decrease in active listings year-over-year. The report highlights significant price increases in hot markets like Las Vegas and Austin, while overall inventory challenges persisted, signaling possible affordability issues in 2022.

Positive

• Annual listing price growth hit 10%, reaching a median of $375,000.
• More than one-quarter of large markets reported double-digit yearly home price gains.
• Increased competition among buyers due to anticipated mortgage rate hikes.

Negative

• Active listings declined by 26.8% year-over-year, indicating a significant inventory shortage.
• New listings fell by 6.1% compared to last year, exacerbating supply issues.
• Yearly growth in the share of sellers reducing prices remained minimal at +0.1%.

SANTA CLARA, Calif., Jan. 6, 2022 /PRNewswire/ -- Colder weather may be settling in, but new housing data suggests the winter market is heating up, as looming mortgage rate hikes motivate more buyers to search for a home despite limited options. U.S. listing price growth renewed its momentum in December, with the annual pace returning to the double-digit territory seen throughout the past year's ultra-competitive spring and summer seasons, according to the Realtor.com^® Monthly Housing Report released today.

"December data offers a fitting finish to the frenzy of the past year. Annual listing price growth hit double-digits again nationwide and in many of the hottest markets, after four months of single-digit pace this fall," said Realtor.com^® Chief Economist Danielle Hale. "Despite buyer challenges like rising prices, limited inventory and fast-paced sales, real estate activity maintained a brisk pace throughout 2021 as factors like low mortgage rates enabled home shoppers to persist. With rate hikes now on the horizon, buyers may be trying to get ahead of higher monthly housing costs, in turn driving up competition and prices. Our 2022 Forecast anticipates affordability challenges this year, but also that trends like rising incomes and workplace flexibility could offer some Americans a better shot at finding a home. For those who weren't successful in 2021, we expect better luck in the coming months as more sellers plan to enter the market – and if December's listings are an indication, with high asking prices in mind."

December 2021 Housing Metrics – National

Metric	Change Over Dec. 2020	Change Over Dec. 2019
Active Listing Count	-26.8%	-57.1%
New listings	-6.1%	-6.9%
Median Listing Price	10.0% (to $375,000)	25.0%
Median Listing Price Per Square Foot	13.3%	32.4%
Median Days on Market	-11 days (to 54 days)	-26 days
Price Adjusted Share1	0.1%	-0.4%

Seller's market gains fresh momentum as annual home price growth hits double-digits
The mismatch between demand and the limited for-sale home supply continues to be a major factor in rising home prices. Buyers remained active throughout 2021 despite months of yearly inventory declines, while home price growth moderated through November. December's larger advance in the typical home asking price may be partly driven by increased competition as home shoppers attempt to get ahead of projected mortgage rate increases. Realtor.com^® forecasts rising affordability challenges in 2022 with December data showing an even bigger price gain for a typical 2,000 square-foot single family home. 

• The U.S. median home listing price reached $375,000 in December as the annual growth pace (+10.0%) accelerated over last month (+8.6%) and further over 2019 levels (+25.0%). Home prices of a typical 2,000 square foot single-family home increased at an even faster pace, up 18.6% year-over-year.
• In further evidence of the still-hot market, yearly growth in the share of sellers making price adjustments¹ slipped in December (+0.1%) from earlier improvements.
• Relative to the national rate, the annual pace of home price growth was lower in the 50 largest metros (+5.4%), on average, but varied significantly across the country. The southern (+10.1%) and western (+8.3%) regions posted the biggest annual gains, while December prices were flat in the northeast (+0.7%) and declined in the midwest (-2.8%).
• More than one-quarter (13) of large markets posted double-digit yearly home price gains, up by more than 20% in Las Vegas, Austin, Tampa and Orlando.

Still-eager buyers drive home sales at breakneck speed for the 10th straight month
Time on market remains historically-low so far this winter, despite typical seasonal cooling giving home shoppers a few more days to make decisions than in the spring and summer. As buyer activity continued to outmatch limited inventory in December, the typical U.S. home hit a 10-month streak of selling faster than in any month before 2021 – building on the trend reported in October. Additionally, homes sold more quickly than last year in all but two of the 50 largest U.S. metros in December.

• Nationally, homes sold in a median of 54 days in December, moderating over the previous month (+7 days) in line with seasonal norms. However, the gap in time on market continued to widen over December of both 2020 (-11 days) and 2019 (-26 days).
• Compared to national pace, time on market was lower in the 50 largest U.S. metros, at an average of 48 days in December, but posted a smaller yearly decline (-7 days).
• The south (-9 days) saw December's fastest home sales relative to 2020, among both the four primary U.S. regions and the 50 largest metros, led by Miami (-31 days), Orlando (-19 days) and Raleigh (-18 days).
• Even in the market where time on market increased over last year – Hartford (+5 days) – homes still sold more quickly than in December 2016-2020. In the Washington, D.C. area homes sold equally as fast as in December 2020.

Inventory falls short as buyer activity continues to outpace sellers entering the market
With buyers still quickly snatching up active listings and fewer new sellers entering the market, the inventory gap from last year continues to widen. December marked the third straight month of bigger annual declines in the U.S. supply of active listings, in a further setback from improvements seen over the summer and fall. Some relief may be on the horizon, with inventory expected to begin recovering from 2021's steep declines in 2022, and buyers in certain markets could see their persistence pay off sooner. In fact, December data shows more new sellers entered the market than last year in one-in-five of the 50 largest U.S. metros.

• In December, the U.S. inventory of active listings declined 26.8% year-over-year, representing 177,000 fewer for-sale homes. The western region (-32.1%) saw the country's widest gap in the supply of listings compared to 2020.
• For the fourth consecutive month, fewer new sellers entered the national market than in 2020 (-6.1%). With homeowners staying put while buyers remain active, newly-listed homes continue to lag behind typical 2017-2019 levels (-12.9%).
• New listings declined across the four primary U.S. regions in December, with the biggest drop registered in the west (-13.1%).
• However, new seller activity picked-up in 10 of the largest metros, led by Memphis (+22.0%), Pittsburgh (+10.9%) and Philadelphia (+10.8%).

December 2021 Housing Metrics – 50 Largest U.S. Metros

Metro	Median Listing Price	Median Listing Price YoY	Active Listing Count YoY	New Listing Count YoY	Median Days on Market	Median Days on Market YoY	Price Reduced Share	Price Reduced Share YoY
Atlanta-Sandy Springs-Roswell, Ga.	$390,000	9.9%	-20.3%	0.3%	43	-10	13.8%	1.4%
Austin-Round Rock, Texas	$544,000	28.8%	-10.4%	1.6%	42	-14	14.9%	3.4%
Baltimore-Columbia-Towson, Md.	$311,000	-4.2%	-12.5%	-2.0%	50	-4	17.5%	1.0%
Birmingham-Hoover, Ala.	$272,000	4.3%	-31.3%	-7.2%	53	-10	12.8%	-1.8%
Boston-Cambridge-Newton, Mass.-N.H.	$695,000	7.0%	-32.3%	-13.4%	52	-8	9.8%	-2.0%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	$217,000	3.8%	-8.8%	-14.0%	65	-7	12.7%	2.1%
Charlotte-Concord-Gastonia, N.C.-S.C.	$395,000	5.5%	-27.1%	4.0%	40	-11	14.2%	1.5%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	$313,000	-4.2%	-26.3%	-13.7%	54	-6	13.6%	0.8%
Cincinnati, Ohio-Ky.-Ind.	$298,000	-0.7%	-19.1%	-9.9%	50	-5	15.3%	-2.2%
Cleveland-Elyria, Ohio	$184,000	-8.1%	-12.8%	-3.3%	55	-3	18.0%	0.5%
Columbus, Ohio	$292,000	-2.6%	-14.1%	3.0%	43	-6	15.1%	-4.1%
Dallas-Fort Worth-Arlington, Texas	$400,000	13.0%	-33.4%	-0.1%	43	-10	11.9%	-3.6%
Denver-Aurora-Lakewood, Colo.	$630,000	17.5%	-36.3%	-16.0%	46	-9	12.5%	-0.1%
Detroit-Warren-Dearborn, Mich.	$217,000	-14.2%	-7.0%	-0.4%	44	-7	17.2%	1.5%
Hartford-West Hartford-East Hartford, Conn.	$349,000	16.4%	-62.1%	-26.6%	59	5	10.7%	0.6%
Houston-The Woodlands-Sugar Land, Texas	$360,000	7.6%	-23.8%	-1.4%	52	-4	15.6%	0.6%
Indianapolis-Carmel-Anderson, Ind.	$276,000	5.2%	-29.9%	-4.8%	45	-9	19.2%	-2.8%
Jacksonville, Fla.	$376,000	18.2%	-36.2%	-7.4%	50	-8	14.7%	-0.5%
Kansas City, Mo.-Kan.	$347,000	6.9%	-12.0%	-7.8%	57	-1	13.1%	-1.3%
Las Vegas-Henderson-Paradise, Nev.	$450,000	32.4%	-37.0%	-18.3%	38	-13	11.9%	-1.7%
Los Angeles-Long Beach-Anaheim, Calif.	$897,000	-10.2%	-40.0%	-18.5%	45	-7	8.7%	-2.5%
Louisville/Jefferson County, Ky.-Ind.	$253,000	5.3%	-13.6%	-5.5%	41	-2	18.9%	-0.6%
Memphis, Tenn.-Miss.-Ark.	$242,000	-3.9%	-14.7%	22.2%	45	-7	14.1%	0.2%
Miami-Fort Lauderdale-West Palm Beach, Fla.	$495,000	19.3%	-53.1%	-18.8%	60	-31	9.3%	-2.6%
Milwaukee-Waukesha-West Allis, Wis.	$257,000	-11.1%	-8.1%	1.7%	53	-3	16.4%	0.7%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	$354,000	2.9%	-12.0%	-16.2%	50	-2	11.7%	0.0%
Nashville-Davidson--Murfreesboro--Franklin, Tenn.	$460,000	16.2%	-46.0%	-23.4%	31	-6	12.0%	-0.9%
New Orleans-Metairie, La.	$345,000	3.0%	-26.5%	-14.3%	63	-6	13.4%	-2.0%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	$664,000	2.2%	-18.2%	-6.4%	68	-7	8.5%	-2.9%
Oklahoma City, Okla.	$282,000	5.7%	-23.8%	-10.9%	49	-3	14.7%	-0.9%
Orlando-Kissimmee-Sanford, Fla.	$389,000	21.7%	-51.4%	-8.9%	46	-19	11.1%	-4.9%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	$300,000	-8.3%	-8.1%	10.8%	58	-3	15.9%	-0.1%
Phoenix-Mesa-Scottsdale, Ariz.	$486,000	17.8%	-8.7%	5.4%	38	-5	16.3%	-2.1%
Pittsburgh, Pa.	$210,000	-12.1%	-10.8%	10.9%	65	-8	17.5%	3.2%
Portland-Vancouver-Hillsboro, Ore.-Wash.	$549,000	3.6%	-19.2%	-1.0%	47	-9	34.9%	13.3%
Providence-Warwick, R.I.-Mass.	$420,000	1.8%	-23.2%	-0.4%	49	-3	9.6%	0.5%
Raleigh, N.C.	$420,000	9.1%	-50.1%	-24.1%	33	-18	9.3%	0.0%
Richmond, Va.	$358,000	-1.7%	-31.9%	-12.8%	50	-5	8.2%	-3.2%
Riverside-San Bernardino-Ontario, Calif.	$549,000	11.8%	-13.1%	-6.5%	43	-4	11.6%	2.0%
Rochester, N.Y.	$199,000	-14.4%	-28.9%	8.8%	39	-10	8.2%	-2.8%
Sacramento--Roseville--Arden-Arcade, Calif.	$599,000	9.0%	-12.8%	-16.1%	42	-1	12.4%	2.0%
San Antonio-New Braunfels, Texas	$350,000	17.7%	-24.1%	-2.8%	50	-5	15.6%	-0.2%
San Diego-Carlsbad, Calif.	$824,000	3.0%	-42.3%	-12.3%	36	-7	8.3%	-3.1%
San Francisco-Oakland-Hayward, Calif.	$954,000	-4.5%	-41.0%	-27.6%	44	-7	6.6%	-3.1%
San Jose-Sunnyvale-Santa Clara, Calif.	$1,239,000	4.4%	-55.6%	-22.9%	39	-3	4.8%	-6.2%
Seattle-Tacoma-Bellevue, Wash.	$670,000	6.8%	-47.2%	-10.7%	41	-10	7.7%	-3.8%
St. Louis, Mo.-Ill.	$245,000	3.2%	-26.7%	-5.4%	58	-13	13.5%	-1.5%
Tampa-St. Petersburg-Clearwater, Fla.	$376,000	25.4%	-42.8%	-7.9%	42	-11	15.2%	-5.0%
Virginia Beach-Norfolk-Newport News, Va.-N.C.	$313,000	1.6%	-27.0%	-16.0%	36	-7	10.6%	0.9%
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	$500,000	0.6%	-14.0%	-14.0%	48	0	13.8%	-0.3%

Methodology
Realtor.com^® housing data as of December 2021. Listings include active inventory of existing single-family homes and condos/townhomes for the given level of geography; new construction is excluded unless listed via an MLS.

¹In this release, price adjustments are defined as home listings that had their price reduced in December 2021. Listings that had their prices increased during the month are excluded.

Note: With the release of its November 2021 housing trends report, Realtor.com^® incorporated a new and improved methodology for capturing and reporting housing inventory trends and metrics. As a result of these changes, this release is not directly comparable with previous data releases and reports. However, future data releases, including historical data, will consistently apply the new methodology. See more details on the methodology changes here.

About Realtor.com^®
Realtor.com^® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com^® pioneered the world of digital real estate more than 25 years ago, and today through its website and mobile apps offers a marketplace where people can learn about their options, trust in the transparency of information provided to them, and get services and resources that are personalized to their needs. Using proprietary data science and machine learning technology, Realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com^® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com^®.

Media Contact
rachel.conner@move.com 

View original content:https://www.prnewswire.com/news-releases/realtorcom-december-housing-report-2021-homebuying-frenzy-concludes-with-double-digit-price-growth-301455145.html

SOURCE Realtor.com

FAQ

What are the key findings of the December 2021 Housing Report by Realtor.com?

The report shows a 10% increase in home listing prices, with significant inventory challenges due to a 26.8% drop in active listings.

How did home prices change in December 2021 according to Realtor.com?

Home prices rose by 10% year-over-year, reaching a median of $375,000.

What is the expected impact of mortgage rate hikes on home buyers in 2022?

Anticipated mortgage rate hikes may motivate buyers to act quickly, potentially driving prices even higher.

Which markets experienced the highest home price gains in December 2021?

Las Vegas, Austin, Tampa, and Orlando reported double-digit yearly home price gains.

What is the current status of the housing market's inventory?

The housing inventory continues to decline, with a 26.8% reduction in active listings year-over-year.