Greetings:
The housing market continues to lose its value nationwide. In fact, many reports suggest that the housing market downturn could wipe out $2.3 trillion in value over the next 5 years. The US housing market is expected to continue to cool off in 2023 after a 40% boom during the COVID pandemic, according to the National Association of Realtors (NAR). Rising interest rates, the lack of inventory, and the rising affordability index are pricing most buyers out of the market. Nationwide, there is close to a 6-year lag in affordable housing units. Despite this, the housing market will remain robust because people still need a place to live.
THE REAL ESTATE MARKET IN OUR AREA CONTINUES TO REMAIN STRONG, EVEN THOUGH THERE ARE SOME SIGNS OF IT WEAKENING BUT IF YOU WANT TO TAKE ADVANTAGE OF OUR CONINTUED POSTIVE APPRECIATION RATE, ESPECIALLY IF YOU PURCHASED YOUR HOME IN THE PAST 10 YEARS, GIVE US A CALL SO WE CAN HELP YOU! OUR DEMAND FOR HOUSING CONTINUES TO OUTPACE THE SUPPLY.
In our local real estate market, comparing 2023 to 2022 through May, the average sales price has decreased (-7.9%) from $363,500 to $334,800. In the same comparison, the median sales price has decreased (-4.6%) from $325,000 to $310,00. Even though the average sales price is down year-to-date, comparing April to May 2023 the sales price increased by (+19.2%) from $318,000 to $378,900. This is a sign of low inventory and several cash sales. It appears that many buyers relocating to our area are retirees that pay cash for their homes.
New listings for the month of May 2023 have decreased to 193 down from 218 listings in May 2022 or (-11.5%). This follows the same trend for our year-to-date listings down (-21.2%) from 912 in 2022 to 719 in 2023. Currently, there is a 2.7-month supply of listings on the market to sell, which is down from last month when it was 3.6 months. Our inventory continues to be a challenge for most buyers. We are still seeing multiple offers on certain priced properties. There were 31 houses sold last month in the $300,000 to $400,000 price range followed by the $200,000 to $300,000 price range at 28 sold.
Our closed sales increased in May 2023 to 124 compared to April 2023 when there were 83 (+49.4). However, comparing May 2022 to May 2023 our closed sales are down (-27.3%) 682 v 496. Even though closed sales increased slightly over last month, at least the trends are heading in the right direction.
Please keep all the men and women that are serving in the military, health care workers, and our first responders along with their families in your thoughts and prayers. Their service and sacrifice keep us safe and free.
Responses