Wow, 2022 was a year for the record books. This has given us some interesting things to look at. I’m going to split this update into two sections. First, an overview of the year, and second the surprising results of December.

What Happended in 2022?

We started Jan & Feb of 2022 on fire with some of the largest increases on record, continuing the upward trend that started in September 2021… and then the music stopped. The next 6 months saw us give back all of the housing gains that happened in the Sept 2021 – Feb 2022 increase. I remember that 6-month increase as an unsustainable ride up so just like what happened in 2017, it all went away, just as fast. The difference this time is that interest rates have gone up instead of down, so since August, we have moved mainly sideways for most housing types and locations.

2022 saw 75,610 total sales, which is a decrease of 38.2% from the record highs of 2021 (121,639). The end of 2022 saw one of our slowest December since 2008, however, a change that we started to see in November has continued…

What Do We See For 2023?

Everyone is asking where the market is going. What do we see for 2023? Are prices going to decrease or increase?

If I were to characterize our market right now, I would say that we are currently in a Balanced Market close to the Buyer’s Market border. We’ve been here since August.

The interesting thing is that though sales volumes are down, so are the number of listings. Let’s take December for example. December 2022 was one of the lowest volume Decembers in a long time, however, when we look at which direction the market was moving, it was moving in the direction of the Seller. In some markets and housing types, more homes sold than were listed in the month. This means that we were “eating up” the existing inventory in the market.

What Kind of Market?

Don’t get me wrong, I’m not saying we’re moving to a Seller’s Market anytime soon. What this suggests is that we are moving more into the middle of a Balanced Market which is likely where we’ll stay for the next year or so. I’ll continue to watch the numbers and stats and interpret them for you, as this can change on us as the year goes on. This is, however, an interesting and somewhat unexpected result coming out of last year.

Happy New Year, I wish you the best in 2023 and as always if you’d like to get in touch I’m only a phone call, text, or email away.

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