As the year comes to a close, it’s worthwhile taking a quick look at some key market statistics.
New national data offers an accurate real estate picture with the figures from the National Association of Realtors (NAR) explaining where the market is positioned and why.
Do remember that national numbers do not directly relate to your own circumstances. America is not a single, giant market but thousands of smaller ones where buyer demand and price trends can deviate within neighborhoods.
There are two general points to make as we approach the festive season and perhaps find time to consider our property ambitions for 2023.
Owners should not forget the buying upside when prices dip. Moving up the property ladder can be cheaper in a market like the one we’re experiencing today. So, stay positive!
When caution strikes a market, double down on your research and engagement with your agent. Use the internet to follow price trends for properties similar to yours in size, style and location. And keep your radar primed for great buying opportunities.
Below are some key points from the NAR research, based on October numbers:
For sale
The total number of homes for sale nationally stands at 1.22 million. This is way off the 2 million to 2.5 million that are usually on offer. This lack of supply is helping to fortify values.
Days on market
The number of days on market is 21, up from 18 in September, indicating increased buyer caution. However, selling within three weeks is still lightning fast and also reflects the lack of supply.
Drop in sales
Another sign of caution is a month-on-month drop in sales. October deals fell 5.9% compared with September. They’re down 28.4% on data for the corresponding period last year. Some 4.43 million properties were sold compared with 6.19 million 12 months before.
Median price
The October median price for all housing was $379,100, up 6.6% on the previous 12 months. Don’t read too much into this, as the market peaked several months later in most US regions.
First-home buyers
More than a quarter of purchases (28%) were made by first-time buyers. I’m encouraged by this because it shows the Fed’s interest rate increases haven’t alienated this essential buyer market.
Distressed sales
Only 1% of sales were distressed: a sign that higher rates have not pushed folks, especially those who bought in the boom, beyond their means.
Cash deals
A quarter of deals (26%) were all-cash, possibly due to investors re-entering the market to capitalize on higher rents prevalent in many areas of the US.
Wishing you and your family a safe and happy Holidays. And if I can help you with your property needs, please do not hesitate to contact me.