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Goodbye 2022 and Hello 2023

The New Year is about to begin and hard to believe it is 2023! Some years feel like a blink of an eye and others seem to drag on. 2022 had a bit of both.

As we emerged from the depths of COVID lockdowns and craziness and starting coming back to “normal”. Still some of the COVID craziness to be had, but it feels like it will be sticking around like that annoying gnat buzzing in your ear that doesn’t quite go away when all you want to do is sit and enjoy a glass of wine on a warm summer day.

Real Estate in 2022 is a tale of 2 markets

The first half of the year was very similar to 2021 with low interest rates hovering in the 3% range, inventory still on the low side, multiple offers, overbidding. If you bought or sold during this time, you know that is was a busy time. Great for sellers and often frustrating for buyers.

The second half has been a slightly different story with higher interest rates, inventory still low, but seeing home sit on the market and sell closer to the list price not unusual. It also seemed like everyone and their brother decided to travel the summer of 2022 and real estate was not totally on the brain for many. Don’t get me wrong, there is not one story that fits for every property. Even in the hay day for sellers, some properties sat, and even now there are properties selling quickly with multiple offers well over list. Location, Condition, Pricing are the trifecta that help determine a properties outcome.

What does this mean for 2023?

There is no real way to predict the future (if I could I would buy a lottery ticket and would be retired sitting on the beach 🙂 )

There are trends in the market and a seasonality to it that has been historically true. Covid times blew any of these norms out of the water, but we do seem to be headed back to the more historical norms with the summer and winter months slower for activity and the Spring still the busiest time in the market.

The trifecta I mentioned earlier (Location, Condition, Pricing) all play into what I am about to say and the one thing I can say based on the 15+ years in this line of work, not everything will fit into the general parameters.

Interest rates will likely level off. There may be a dip as well, but likely not back to the 3%. Keep in mind if you look at the history of rates, rates now are still pretty low! Check out the graphs below to see how rates to compare historically.

Pricing

Pricing will likely continue to level off and there will be more of “normal” market where properties sell closer to the list price or a more common overage seen in our market area of 10%-25%, instead of the 50-60% over list we saw in the Spring market.

Inventory

Inventory likely to still stay on the lower side. If you don’t need to sell, or if you purchased a couple of years ago, you likely are going to hang tight. Situations always change, and there will still be properties on the market.

The reality is we all need a place to live and either you pay rent, or you pay a mortgage. Unless you are lucky enough to have family/friends that are providing a place for you to stay, you need to pay someone.

Questions? Let us know!

If you have any questions about a specific market area, home or looking for more details about the home buying or selling process,  let us know and we can help answer your questions.

Interest Rates 2016 to Now

Historical Interest Rates

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