In this month’s edition of the Lewis County Market Report for March 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 37% from February! However, inventory only increase by 1 unit. Baby steps? Currently, there are 117 units available. We’re 21 units over the historical low and about half as many units currently for sale than there were in September of 2021. Following trends, expect inventory levels to increase throughout the summer and drop again in the winter.
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 February, 115 units when pending. This month 128 units were gobbled up by buyers. I do expect buyer demand to decrease slightly in the coming months as interest rates start to creep upward.
Average sales price based on a 12 month rolling average increased approximately $5,600. That is more than double the increase we experienced last month! That currently represents a 16.59% annual return on investment. For comparison, the Dow Jones Industrial average is down 5.82% 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.
Here’s another interesting article on Interest Rates.
Lewis County Market Report March 2022 Summary
We are beginning to see a slight reprieve in inventory as the peak season for listing is quickly approaching. March was supposed to be the beginning of the end for buyer demand, but so far, it appears to be as strong as ever. With that demand, prices rose AGAIN. As I’ve been mentioning over and over, waiting is not a strategy!
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