2022 was a year of two halves. The first part of the year it was all about the sellers. Pent-up demand from the pandemic continued to drive the market and buyers could not move fast enough to secure a home. There were lines around the block for Open Houses, multiple offers, inspections and contingencies waved, homes going under offer in a matter of days and selling for up to 20% over the list price. There were even incentives being offered to sellers – our favorite was a buyer who offered to take on the donkeys that lived on the property in order to seal the deal.
Then interest rates began to rise and, combined with buyer frustration at the lack of available property, things started to slow down. The second half of the year saw a return to a more normalized market – fewer multiple offers, inspections back, homes taking longer to sell. However there was no sign of the housing market “crash” predicted by some. Prices remained strong and, although the situation improved for buyers, the general shortage of inventory meant that overall homes were still selling for at or above the list price.
Looking at the year as a whole, there are many positives to bring into 2023. In our office towns, despite the slowdown, house prices were up on the previous year – which itself was a record year – and days on market were also fewer than in 2021. Heading into 2023 we expect this normalization to continue, as buyers who were unable to find the right home last year are still in the market. Already we have experienced a very busy Open House weekend for the first of the new year, proving a continued interest in real estate in this area, Mortgage rates have stabilized and are forecast to drop below 6% in the first half of the year.* What happens for the rest of the year is hard to predict, but with continued buyer interest and flattening mortgage rates, we could be in for an early spring market.
As always, if you want to know more about the market in your particular neighborhood, you should talk to an experienced realtor. Our agents are carefully watching the market trends, and seek opinion from their fellow Barrett Sotheby’s International Realty agents to ensure homes are priced accurately and marketed to the widest possible audience. Get in touch today to start a conversation.
*Mortgage Rate Forecast: Rates Will Drop Below 6% in 2023 | Money
