Most signs point to a declining or stagnant market moving forward.
As we approach the end of the first quarter, it’s time to look at our market statistics and what we can expect from the Summer market. Obviously, we can’t predict the future with 100% accuracy, but we can give you a good idea of the market’s current state and get an impression of where it might head from here.
As interest rates increased again in February, we’ve begun to see the median sales price in our market creep down. Our peak median sales price had been just over $400,000 in June of 2022. Today, we’re back down to around $367,000.
Average days on market is another area where we’ve seen a change. You can no longer expect to see five offers after putting a sign in your yard. We’re currently hovering around 55 days on market, with incorrectly priced homes sitting for much longer.
“The future of our market depends on interest rates. ”
Right now, the average listing receives about 96% of their list price in the final sales price. This is in contrast to the market of May 2022, where numbers more than 100% of list price were common. A reason for this could be incorrect pricing, as people are using comps from six or eight months ago when conditions were different.
Finally, looking at the average sold price per square foot, we haven’t seen much change. In April 2022, we saw around $202 per square foot, and we’re seeing exactly that coming out of January 2023.
Overall, the numbers tend to indicate a stagnant market, with some indicators pointing to a very slight decline. Much of that will depend on the interest rate; if that changes, we could see a swing in either direction.
Hopefully, this was helpful to you as you make plans for the future. If you have any questions about this topic or real estate in general, please feel free to call or email me. I would love to be a resource for all of your real estate needs.