Early 2023 Data Suggests Buyers Are Back
Across the US, Americans have been buying homes this winter resulting in the availability of single-family homes declining this week. There are more immediate sales since the beginning of the year. The question is not whether or not people are buying homes, because they are. The right question to ask is, will this soft landing last.
OUR SELLER IS NOW IN CONTRACT
ONLY 8 DAYS ON MARKET
77 Townsend #931 | 170 Off Third | South Beach
2 Bedrooms | 2 Baths | 1,143 Sq Ft | Panoramic City Views
Found the Buyer after one weekend of open houses. Click here for listing details.
Despite layoffs in tech, early 2023 data suggest buyers are now back:
- Inflation has dropped substantially since June 2022.
- Mortgage interest rates also have been improving since November 2022.
- The stock market is up 8% (S&P) to 15% (Nasdaq) YTD as of February 3rd.
- Open house traffic has jumped
- Buyers are requesting listing disclosure packages
- Anecdotally there are increasing reports of multiple offers and over bidding.
PENDING SALES ARE UP
THE NUMBER OF ACTIVE LISTINGS IS UP
WHEN STOCK MARKETS ARE UP, DEMAND STRENGTHENS
MORTGAGE RATES IMPROVE
During the long high-tech and pandemic housing boom – which peaked in April/May 2022 – as each year began, the classic dynamic was for buyers to jump back into the market much more quickly than sellers, creating an immediate imbalance between supply and demand. The quantity of motivated buyers versus fewer new listings led to bidding wars and considerable home price gains virtually every spring. It is too early to conclude, after the general price declines and steep drops in market activity seen in the 2nd half of 2022, that a sustained recovery in market conditions is now underway, and if it is, how quickly it will develop and its impact on prices in 2023. If economic conditions continue to improve, it will provide a foundation for the recovery in real estate.