The February the market delivered a solid performance.
In February 2023, average sales prices were around $439.000, down on 2022, but around $8,000 UP when compared to February 2021. So far this year, values have been flat, but we expect that to change.
Don’t let this graph fool you. January and February 2023 sales volumes are at pre Covid norms. We expect sales volume to climb in March, as we enter the traditional spring market.
Days on Market
Average days on market in February 2023 was 52 compared to 40 last year and 46 in 2021. This may suggest a little hesitancy on the part of home buyers, perhaps in light of interest rate increases, but really nothing to worry about.
We are now trading with less than 4 months of supply. I believe that many home owners who are enjoying low interest rate mortgages, are reluctant to move until interest rates come down.
This is impacting supply of single-family resale product. If this situation continues, as we enter the spring market, values will go UP.
In general, anything less than four months of supply is considered a sellers’ market. Four to six months is balanced and anything above six months of supply is considered a buyers’ market.
For the first quarter of 2023, home sellers should consider pricing lower than for the same period last year. However, as we move into the spring selling season, sales prices should ascend in line with seasonal norms. Or we might be in for a big surprise. I am hearing stories of bidding wars and multiple offer situations more and more. There is a possibility that we move back into a state of ‘irrational exuberance” such as we saw in 2023.
Look for my March 2023 report during the first week of February. Thank you.
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