In the article, "Strong Year for Home Sales," Economic Outlook specifies "that sales for all of 2021 still were 8.5% higher than in 2020," even though there was an unexpected dip in December, inventory levels were down 14%, well below the 6-month supply which is considered a healthy balance between buyers and sellers, and a record low level. The median existing-home price was 16% higher than last year at this time at $358,000.
Also notable, the mix of homes currently selling has been changing. Sales of homes priced between $100,000 and $250,000 were 23% lower than a year ago. Rising prices and competition from investors have made it more difficult for buyers to find affordable homes, especially at the lower end of the market. By contrast, sales of homes priced between $750,000 and $1,000,000 jumped 32% during that period.
Investors have been watching the monthly reports on housing starts closely, as well as closely following any news on the omicron variant, and after the shortage of available homes in many areas, the most recent data was encouraging. Building permits, a leading indicator of future activity, also beat the consensus forecast, rising to the best level since January 2021. Though higher prices and shortages for land, materials, and skilled labor remained obstacles to a faster pace of construction.