A critical February market update to guide you with your real estate plans.
The numbers are out for this month! What market trends emerged at the start of the new year? In the first month of 2023, there have been significant changes that could impact buyers, sellers, and agents.
The latest market stats show that there has been a significant increase in the number of active houses on the market to purchase. Specifically, on February 10, 2023, the number of active houses rose by 66.9%, from 2,167 last year to 3,616 this year on that date. While an increase in supply would typically result in downward pressure on price, it’s essential to also understand the demand picture.
In terms of demand, the market has seen a 30.5% decline in the number of houses sold in January 2023 compared to last year. The decline in demand, coupled with the rise in supply, could lead to a softening of prices and more favorable terms for buyers.
“There has been a significant increase in the number of active houses on the market.”
While these trends are noteworthy, it’s crucial to remember that these are just January numbers. As such, it’s difficult to predict long-term trends from these data. The interest rates have stabilized, and there’s more activity, and we’re keen to see what the February numbers look like.
It’s also important to note that the median price of homes is up 5.3%, from $285,000 to $300,000, and the average price is up 11.3% from $325,679 to $362,522. Another important factor to watch is the average days on market. In January 2022, homes were sold on average within 31 days. This year, the average days on market has increased to 49 days. This increase is significant, but it’s worth noting that between 2016 to 2020, the average days on market was 53 or 54. That market was anomalous, and now things are starting to normalize, which is excellent news for everyone.
If you have any questions about February’s market stats or need help with your buying and selling plans, call or email me. I’d love to share with you my insider real estate knowledge.