Analyzing how the housing market has changed in the last year.
If you’re thinking about making a real estate move anytime soon, you need to be aware of how the market has changed and where it’s headed. To help you determine this, we are here today with a market update. We will be comparing important statistics from March 2022 to March 2023, the most recent data.
First, let’s start with the absorption rates. Absorption rate is a term used in real estate to describe how long it would take to sell off all of the current inventory. In 2022, it was at 0.79 months, but in 2023 it got up to 1.33 months. Therefore, the number almost doubled. A similar phenomenon is displayed in the number of homes sold, which was 1,301 in March 2022 and 1,561 in March 2023.
“The numbers have changed a lot in the past year.”
Another important data to look at is the number of active listings, which went down. In March 2022, there were 1,865 active listings, but in March 2023, there were only 1,296. This is because homes are selling faster, which means sellers shouldn’t be waiting to sell. Another great statistic for sellers is that the average sales price went up, from $280,000 to $295,000. Home values normally increase in real estate, which means sellers can now get more money.
The average days on market in March 2022 was 33 days, and that has gone up dramatically to 47 days. This means that homes are taking longer to sell, which means there is also a data point in favor of buyers, as they now have more time to decide. However, interest rates are now up to 6% and 7%, depending on the type of loan the buyer is getting.
These numbers should give you a good idea of how things have changed in the last year. Lastly, one other thing you should know about real estate is this important quote from Will Rogers: “Don’t wait to buy real estate. Instead, buy real estate and wait.” This is very smart in today’s market. If you have any questions or would like our help buying or selling, don’t hesitate to reach out. You can call or email us anytime, and we look forward to hearing from you.
