With only one month left in 2021, it’s time to start looking ahead to housing market predictions for 2022. Using data from Redfin, including sales-to-list price ratios, median sale prices, days on market, and for-sale inventory from October 2016 to October 2021, we’ve determined which cities have the hottest housing markets going into 2022. Read on to find out which cities made the list.
Bellevue is a large suburb of Seattle and frequently voted as one of the best places to live. And Bellevue’s housing numbers support this claim. Over the last five years, the median sale price in Bellevue has risen by nearly 80%, from $735,000 in October 2016, to $1.32 million in October 2021. Meanwhile, homes are getting sold for more than their listing price: Bellevue’s average sale to list price ratio was 107.8% in October 2021, up 6.1% from October 2020 when it was 101.5%. Not surprisingly, the number of available homes is dwindling, with for-sale inventory down 77.5% from last year: From 267 available homes for sale in October 2020, down to just 60 in October 2021.
Cary, North Carolina
Many metropolitan centers across the U.S. South have come into their own over the last decade. Cary is particularly hot these days, with its median sale price up 26.7% since last year, from $405,000 in October 2020, to $513,250 in October 2021. Available inventory has fallen in Cary year over year, declining from 711 homes for sale in October 2016, down to 234 homes for sale in October 2021, a 67.1% decrease in five years. From 2020 to 2021 alone, Cary’s available inventory was cut in half, from 476 in October 2020 to 234 in October 2021. At the same time, the average sale to list price ratio has reached a new high of 105.6% in October 2021, where in October 2020 and 2019 the ratio never exceeded 100%.
Buffalo, New York
A notable victim of de-industrialization that has racked the U.S. economy since the 1960s-1970s, Buffalo housing has been making a comeback as of late. Available for-sale inventory stood at 1,211 homes in October 2019, before falling by almost 61% over five years, to reach a new low of 473 in October 2021. Over this same period, the average number of days on market for a home for sale dropped from 50 days to just 10 days. Meanwhile, homes have increasingly sold for more than their listed price, with the average sale to list ratio reaching an impressive 107.8% in October 2021, up massively from October 2016’s 97%. The median sale price in Buffalo is comparatively affordable at $205,000 in October 2021, but that’s notably up 70.8% from five years ago, when it was $120,000 in October 2016.
San Jose, California
The heart of Silicon Valley has been a hot housing market for some time, but San Jose’s housing market will continue this trend into 2022. The average number of days on market for a home for sale is as low as 11 days as of October 2021, down 45% from the previous year and down 72.5% from two years ago. Inventory has dropped substantially in the past year, falling from 1,064 available homes for sale in October 2020, down to only 530 homes in October 2021. Not coincidentally, San Jose homes are increasingly going for more than their listing price, with the average sale to list ratio reaching 107% in October 2021, up from 102.8% last October. As for home prices, the median sale price in San Jose stands now at $1.25 million, an increase of 11.6% over the last year.
A large suburb in the Dallas-Fort Worth metro area, McKinney is also one of the hottest housing markets going into 2022. Prices are up by nearly a quarter year over year, from a median sale price of $366,000 in October 2020, up to $450,250 in October 2021. Over the same period, available inventory has been slashed in half, from 503 homes for sale in October 2020, down to 245 homes for sale in October 2021. At the same time, more McKinney homes are selling for more than their listing price. In October 2016, 2019, and 2020, the average sale to list price ratio never exceeded 100%; now, it’s reached 103.9% in October 2021.