Home Prices Continue to Rise
I would like to take a moment to talk about home prices in our area. I am looking at our Canopy MLS Local Market Update for October 2021. (The November update is not published yet.) In October 2020 we had 156 new listings in Haywood County. This year we only had 145 new listings. In October 2020 our inventory of homes for sale was 302. This year our inventory of homes for sale dropped to 206. That is almost 32% fewer homes on the market. This shortage of homes for sale has driven prices upwards. In October 2020 the median sale price of homes sold was $257,000. This year the median price of homes sold in October had risen to $325,000, a 26.5% increase in one year. Last year the average list price on homes on the market was $353,292. This year the average list price in October had risen to $429,042.
The above numbers reflect the fact that home prices are simply based on supply and demand. When demand is strong and supply is dwindling, prices will invariably rise. I have clients who keep asking where are home prices headed? In my opinion, home prices will continue to rise as long as supply remains tight. I would hope that prices rise at a more reasonable rate next year. Of course, there are many factors at play here. The pandemic, politics, war, natural disasters and other unknows cannot be predicted.