Comparing inventory levels between 2021 and 2022.
Is there more inventory on the market in the first quarter of this year than there was in Q1 of last year? Today we’ll look over the numbers and discuss what they mean for the market.
In January 2021, there were 3,100 active listings in Cuyahoga County, and this year, there are 849 active listings. That’s an 18% drop in inventory. That’s significant because last year, people were scrambling for homes, meaning that this year has been even worse. As of March this year, we have 2,856 homes on the market compared to 2,966 homes last March. That’s a 3.7 % drop, which isn’t that significant, but it’s still lower than it was a year ago.
So what’s going on this year that wasn’t going on in 2021? Last year, we didn’t have increasing interest rates. Rates have gone up from 2.9% to as high as 4.25%, depending on your situation. You might think that rising rates should dampen demand, and you’d be right—it should dampen demand. It hasn’t yet, however, because buyers realize that interest rates might continue to rise, prompting them to jump into the current market with both feet as they try to lock in the lowest rate they can.
To be honest, rates have gone up more than I expected; I thought they’d only reach 4.2% by the end of this year, but they’ve already reached 4.2% in March. That’s a big surprise to me, but so far, it hasn’t hurt demand yet. In fact, it’s created a frenzied seller’s market in which most homes are selling for top dollar.
All in all, this is a very good time to be a seller. Buyers will have a tough time and may need extra tools in their toolboxes to make their offers stand out in the crowd.
Whether you’re looking to buy or sell a home this year, if you have any questions or need assistance, don’t hesitate to give me a call or send me an email. Hope to hear from you soon!