JANUARY 2023 RESIDENTIAL REAL ESTATE STATISTICS
The Multiple Listing Service of Southern Arizona stated:
Change in closed sales all properties – down 45.8%
Change in median sales price all properties – increased 6.1%
Change in homes for sale all properties – increased 53.8%
2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity, with pending home sales and existing-home sales down month-over-month, and falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS®. Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home. New listings decreased 34.5% for single family homes, and 26.7% for townhouse/condo. Pending sales decreased 33.4% for single family and 24.3% for townhouse/condo. Inventory increased 51.4% for single family and 74.2% for townhouse/condo. Median Sales Price increased 7.2% to $370,000 for single family and 20.2% to $252,500 for townhouse/condo. Days on market increased 73.1% for single family and 72.7% for townhouse/condo. Months supply of inventory increased 84.6% for single family and 112.5% for townhouse condo.
Economists predict sales will continue to slow and housing prices will soften over the next 12 months. However, inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to the National Association of REALTORS®.” The percent of list price received is only down 0.6%.
As of January 11, 2023, the Economist for the National Association of REALTORS® stated that we will rebound in 2024. Inflation is starting to move down as it peaked in 2022 at 7.1%. Mortgage rates have peaked and will level out. We now have more jobs than pre-covid with Arizona fairing one of the best markets.
The luxury market withstood the turbulence of 2022. However, in January 2023, I have started to see a lot more luxury listings coming on the market which will start dropping those prices slightly.
The average net worth of a renter today is $8,000. The average net worth of a homeowner today is $320,000.
There is light at the end of this tunnel. If you want/need to become a homeowner, this year will be a good time to do that before the rebound in 2024. Most sellers are willing to give concessions now to help you out with a 2-1 buydown on your mortgage rates. How may I assist you this year?