The fourth quarter ended 2021 on a strong note, continuing the trends of the prior months, and closing the book on what was a record-breaking year in residential real estate. In spite of increasing sales prices and higher interest rates, we saw existing home sales increase October through December across the country. Also increasing, but on a somewhat slower pace, were new listings and new home builds. As the supply chain issues are rectified, these new builds will add much needed inventory to an already competitive houseing market, although it is uncertain how much these new homes can shift the trajectory of decline that we have experienced for the last couple of years.
Q4 average sales prices were up compared to last year, increasing 9.4% from $281,189 in 2020 to $307,751 in 2021. Buyer demand continues to increase, and economists feel that all indicators of buyer activity will trend upward. In addition, percentage of original list price received increased in the fourth quarter to 99.5% – up from 98.8% at this time last year.