With inventory dropping significantly year-over-year and buyers looking to lock in low-interest rates, we continued to see a brisk market in Q4. The state's unemployment rate of 5.4% (as of November 2021) was also a contributing factor, adding to the healthy supply of buyers.

For single-family homes, inventory plummeted 41% from the final quarter of 2020. The average selling price, meanwhile, rose 12%.

Condo inventory also experienced a significant drop last quarter, 43%, with average selling price creeping upward by 5%. Condos diverged dramatically from single families, though, in terms of closings (+42%) and pending sales (+36%) compared to 4Q20.

What should sellers and buyers expect for Q1 and the rest of 2022? Inventory is projected to stay tight, pushing prices higher across most of the market — albeit in the form of single-digit increases rather than the double-digit increases of last year. Look for competitive-offer situations to remain common for both single families and condos. 

Interest rates are slowly rising and are anticipated to continue doing so throughout the year. As a result, some buyers will be pushed out of the market. If you're a potential seller, we advise listing your home as soon as possible to take advantage of the scant inventory before rates go any higher. Plus, you should price your home near where you believe it will sell. (In order to help get your home market-ready, Compass Concierge offers decluttering, painting, staging and related services.) 

As for buyers, be sure you're prepared to make an offer. That means a) getting preapproved for a mortgage (if financing), and b) doing your due diligence, including seeing as many properties as possible so you're ready to make an appropriate offer quickly when the right property comes on the market.