An overview of the changes we’re seeing in our real estate market.
As we dive into the latest market update, let’s take a moment to compare how we’re faring this year, May 2023, to our performance last year, May 2022.
One notable observation is that homes are selling for higher prices this year than they did last year. However, it’s important to note that the process is taking a bit longer. The absorption rate for this year stands at 1.4 months, compared to last year’s rate of 1.03. For those unfamiliar with the term, the absorption rate signifies the length of time required to sell all existing inventory.
“Opportunity is missed by most people because it wears overalls and looks like work”
Additionally, the average number of days on the market has increased from 22 days last year to 37 days this year. Given the higher absorption rate, this outcome shouldn’t come as a surprise. Moving on to pricing, the median list price has risen from $271,500 last year to $310,000 this year. Similarly, the median sales price has experienced a significant jump from $259,000 to $265,000. These figures indicate an overall upward trend in the real estate market.
Now, let’s shift our attention to interest rates. This year, interest rates have risen to 7.25%, up from 5.5% last year. It’s crucial not to miss the opportunity presented by these rates. If you’re interested, feel free to reach out to me.
It’s clear that home prices have increased significantly. Although the absorption rate and days on the market have also risen, these changes were anticipated given the current market conditions. Now is an opportune time to seize potential benefits in the real estate market. If you’re looking to make a move, don’t hesitate to contact me by phone or email.
