In this month’s edition of the Lewis County Market Report for February 2022, we’ll consider all the major factors that contribute to a market. Then we’ll analyze the findings and predict what we’ll find in the next market update.
New listings are up nearly 12% from January. However, available homes went down by about 14%. Currently, there are 246 units available. It literally has never been lower in history of record keeping which started in 2006. I said the same thing last month as well.
Buyer demand is still higher than new listings each month. This is one of the reasons why our inventory supply is decreasing month after month. In January, 87 units went pending. In February, 115 units when pending. I do expect buyer demand to decrease slightly starting in March as interest rates start to creep upward.
Average sales price based on a 12 month rolling average increased approximately $2,500. That currently represents a 7.5% annual return on investment. For comparison, the Dow Jones Industrial average is down 6.2% for the year.
There is no change to the information I posted last month. However, it is important to repeat.
Interest rates are more devastating to your buying power than any market crash. After many rumors of interest rates increasing, the fed recently stated they were going to raise them three times just this year. This may not have a quick turnaround on buyer demand per se, but it will make things much more expensive even if prices start trending downward. This could in time reduce buyer demand and subsequently ease the massive price increases we are seeing each month. However, because inventory is so low, I do not see prices going down, only the gains being less.
Lewis County Market Report February 2022 Summary
In February 2006, near the height of the market at that time, there were 452 New Homes / Pending Sales / Closed Sales. In February 2022, there are 442 New Homes / Pending Sales / Closed Sales. The demand is there, but it may start to wane. However, inventory is still incredibly low. Prices will continue pushing upward, although the gains may be smaller.