We are going into 2023 with a very different real estate market than we have had in both 2021 and 2022. Obviously, the significant rise in interest rates over the past year and the negative effects high inflation has had, have been major contributions to the public pulling back their spending, as they seem to be in a “wait and see what happens from here” mindset towards buying or selling real estate.
By the end of June 2022, we were close to the end of June 2021 numbers but were starting to feel the effects of the economic conditions as mentioned above. The 2nd half of the year we saw a large year over year drop, and by the end of the year we were down to 24% below 2021 in the number of total sales for the year, and 11% in dollar volume. However, prices are holding quite well, overall; down approximately 10%. We are told inflation is slowing which gives us hope the interest rates will stabilize as long as that trend continues.
The other factor that is having quite an impact is that we are at a many year, if not all time low in inventory on market listings. This is good for sellers but certainly not for buyers. It leaves some people hesitant to put their home on the market, as they worry once they sell, they may not be able to find a home.
It has certainly been quite the run, like our market has never seen before. Prices, up 40% since the start of Covid are now backing off a bit – we will keep you updated on what is happening from here.