2022 Year End Market Update
What a rollercoaster we have been on in the real estate market over the last few years, over the last 6 months we have seen he market start to correct itself and hopefully some info will help you understand where we started this year and where we ended.
Inventory
Since summer we have seen the inventory of homes outpace the demand, meaning we have had the highest number of homes for sale at one time in the last 3 years. Not only does this mean more options for buyers but, more competition for sellers.
* Inventory
- 16,135 (Dec) Now
- 17,835 (Sep) 3 Months Ago
- 9,450 (June) 6 Months Ago
- 4,600 (March) 9 Months Ago
- 5,201 (Jan) 12 Months Ago
* Appreciation for 2022 - Long story short we are looking at breaking even for the year, we had about a 15% increase from January to May. Appreciation has been slowing down, losing that initial gain over the last 5 to 6 months. Pricing is becoming more inline with January 2022 and we’re expecting to see another slight drop as we go into 2023.
* Median Sales Price
- $430,000 (Dec)
- $460,000 (Sep) 3 Months Ago
- $495,000 (June) 6 Months Ago
- $481,000 (March) 9 Months Ago
- $450,000 (Jan) 12 Months Ago
* Demand - We’ve had a decline in home buyers month over month the last 5 months due mainly due to increasing interest rates affecting people’s buying power and pushing them out of the market. According to Zillow we have a ton of people on the sidelines waiting for interest rates to drop.
*Homes Selling
- 4,688 (Dec)
- 6,838 (Sep) 3 Months Ago
- 7,750 (June) 6 Months Ago
- 10,912 (March) 9 Months Ago
- 8,920 (Jan) 12 Months Ago
Final Thoughts…
The number of people buying homes has continuously dropped month over month for the last 6 months. Meanwhile the number of homes for sale have continued to increase during this time. Pricing peaked in June and has been steadily dropping as more home buyers continue to sit on the sidelines. The amount of homes for sale is almost tripled the amount it was a year ago
What’s going to happen next year? Buyers have more choices and a larger selection of homes now. For the 1st time in nearly 3 years, buyers have more negotiating leverage. Opportunities are opening up for the creative and persistent buyers and will continue until competition jumps into the market. For those who need or who are thinking of selling their home, now is not the time for short cuts. Clean up that yard, paint the house, handle those projects you’ve been putting off. Make your home more desirable than the rest of your neighbors who have their house up for sale, you only have one chance for a first impression. Think big picture… if you have owned your home for more than a couple years, chances are you’re still coming out ahead.
