December Declines Accentuate
Year of Transition Toward Balanced Market
The housing market decelerated throughout 2022 creating more opportunities for homebuyers, in stark reversal of the frenzied seller’s market of the previous year. The year’s most telling stats were punctuated in December: Home sales were down 38% from a year ago while the number of homes for sale was up 69% in the report’s 53 metro areas.
Sales in every month of 2022 fell short of the previous year, with the percentage of decline starting out in single digits during the first quarter before topping 30% in the fourth quarter. The Median Sales Price of $385,000 was 1.3% higher year over year in December, compared to 13.9% higher year over year last January.
As in October and November, the average Close-to-List Price Ratio in December was 98%, meaning that homes sold, on average, for 2% less than the asking price. The ratio peaked at 103% in April and May compared to 100% in December 2021.
December inventory was down 12.2% from November but grew month-to-month in six of the last nine months.
Other notable metrics include:
• New listings recorded 2022’s largest month-to-month decline of 25.2% and finished 15.1% lower than a year ago.
• Homes sold in December were on the market for an average of 47 days. That was 10 more days than one year ago.
• December’s 2.5 months supply of inventory was unchanged from November but more than double the 1.2 of one year ago.
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