End of the Year 2022
Lately, when people find out that I am a realtor they most often will ask, with a scared look on their face, how is the market doing? So if you are nervous or just curious, I am happy to report that the market is normalizing. In the last two years with the rise in home equity, many buyers decided to jump into the market out of a “want” mentality. Homeowners used that incredible equity to move into homes that fulfilled more of their wants. Features like extra square footage, multiple garages, primary suites, second floor laundry, and upgraded kitchens were reasons that people chose to move. Add that group to the typical group of people who buy/sell out of necessity: changing jobs or locations and the need to upsize or downsize based on a variety of reasons, which is one of the reasons that the inventory of homes was so low creating a competition in the market different from any market in recent history. For your reference, here is graphic from Trendgraphix computed from our area:
Essentially what this graph tells you is that inventory in our area has almost doubled, which is good for both buyers and sellers in my opinion as this indicates a more normalized market. As a rule of thumb, an inventory level of less than three months indicates a strong seller’s market while an inventory level greater than six indicates a buyer's market.
Now the important part: what does a normalized market mean for you as a buyer or seller?
The benefit of increased inventory for buyers is that you don’t have to make one of the biggest decisions of your life in ten minutes. Homes are staying on the market a little bit longer, so you can look at what is available and make a well-informed decision. It has also become more common for sellers to offer concessions by paying closing costs and buying down your interest rate, which lowers your out of pocket costs at closing and could help with the higher interest rates. For sellers, it is important to get your home in the best shape possible. This will help with a quick sale and also help to get you the most money for your home. Additionally, you get to take advantage of the phenomenal growth in equity from the last two years.
This past year in real estate has truly been amazing. Thank you for trusting me to be your real estate professional and for all of your referrals this year. I am happy to announce that I hit my goal for 2022. I appreciate you all beyond words. I hope this holiday season offers you a chance to regroup and reflect. If you ever have questions about the market conditions or how to become an investor or just want to catch up, please reach out.
Your favorite realtor,