Crucial stats about where the housing market is trending in 2023.
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Happy Holidays and Happy New Year! We are already at the last video of the year, which is crazy. For this last installment, I will update you all on what the market is doing as the year comes to a close.
To start, interest rates have been steadily declining from the peak in November of about 7%. Today, the rate for the national average is down to about 6.3%. I will keep an eye on where that number goes as we enter the coming year.
Another thing that I've been following closely is inventory, which is about three times what it was this time last year. Therefore, buyers have a lot more options and things are a bit more competitive for sellers. That being said, inventory is still relatively low, and if rates continue to fall, there's going to be a lot of demand.
The third point that has changed recently is the average number of days that a property will stay on the market, which continues to climb. At the beginning of this year, that statistic was sitting at about one week, but the average days on market is now 30 to 35 days in our area. Therefore, transactions are taking a bit longer, and expectations need to continue to adjust to that.
Overall, the market is in a much healthier place. Things are down from the peak that came earlier this year, but that’s good news for the market. Now buyers don't have to waive all of their inspections and things that protect them from potentially large expenses when they first move into a house. At the same time, sellers are still getting very good prices for their homes.
If interest rates continue to decrease, the market may make some gains in the spring, and I will keep an eye on that. Still, as 2022 comes to a close, the market is looking very good.
Real estate is a very localized industry, and things are different from one neighborhood to the next, so feel free to reach out if you'd like to discuss your specific situation. Call or email anytime. Also, 2022 has been a great year, and I greatly appreciate your support in making that happen! I wish you a great holiday season and a happy New Year.