Here’s what buyers and sellers need to know about our market.
Today, we’ll be discussing the February 2023 real estate market, which is undergoing significant changes. There are currently 20,422 homes available for sale this year, compared to 11,822 last year, representing a 72.7% increase in active inventory. However, new homes on the market have decreased by 17% this year, with 7,595 homes listed compared to 9,135 last year.
Homes sold have also decreased by 28.9%, with 5,687 homes sold this year compared to 7,993 last year. The months’ supply of inventory has increased to 3.59 months in February 2023 compared to 1.48 months this time last year; that’s a 242% increase in inventory in just one year.
While active inventory has risen significantly, new inventory has dropped due to some sellers opting to keep their homes due to the low interest rates they locked in. Homes sold have also decreased, as some sellers are not in a hurry to move. However, this trend cannot continue indefinitely, as life circumstances may eventually necessitate a move.
The supply of inventory is still below six months, which indicates we are still in a seller’s market. However, this can vary by price point, location, and type of property. While sellers are still reducing their prices, buyers are also becoming more active in the market as they want to lock in interest rates before they rise.
Although rates are still historically low at around 7%, they are not as low as the 3% rates we had last year. It’s worth noting that when someone sells a home in this market, they have more options to choose from when buying a new home. This is because the market is currently more balanced, and there are fewer bidding wars compared to last year.
If you know anyone looking to buy or sell a home or are considering doing so yourself, please don’t hesitate to contact me. You can reach me at (602) 738-9943 or send me an email. Have a great day!