Amy's 2022 Review & What's About to Happen in 2023!

Happy 2023 From Amy Balewicz Homes! 

As we begin a New Year, I’d like to provide insight into the 2022 real estate market and look to all that 2023 has to offer. The past few years have felt like quite a roller coaster and as the market continues to become more balanced we can celebrate the opportunities that exist for buyers and sellers in this new market.

In Spring of 2022 we continued to see incredibly high demand for limited inventory. Buyers were driven into the market with the desire to be near friends and family, the need for a larger home, and low interest rates. Distance moved from a buyer’s last home increased from 15 miles in 2018 to 50 miles in 2022 as buyers looked to small towns and rural areas.

During the second half of the year, the housing market started a contraction due to higher interest rates and concerns about housing affordability. Housing affordability was a continual theme throughout 2022, first with the rise in home prices, and then the rise in mortgage interest rates which is a result of inflationary pressure.

First-time buyers made up 26% of home buyers, down from last year’s 34%. This is the lowest share of first-time buyers in reported history as buyers face tight inventory, rising home prices, rising rents, and high student debt. The typical first-time buyer was 36 years old this year, rising from 33 last year, while the typical repeat buyer age climbed to 59 years. Both are all-time highs. The largest share of home buyers this year were 55 to 75, accounting for 42% of all buyers.

Throughout the home search process, real estate agents continue to be the most useful information source with 86% of buyers purchasing their home through a real estate agent.

While the home search process has shifted toward digital technology, the need for a trusted real estate agent to help sell a home is still extremely important with 86% choosing to partner with an agent to sell their home.

The typical age of home sellers was 60 this year, an increase from 56 last year. 41% of sellers traded up and purchased a home that was larger in size than what they previously owned, 32% bought a home that was similar in size, and 27% traded down and purchased a home that was smaller.

As we enter 2023, mortgage rates are expected to decline slightly, which will help to increase affordability for home buyers. Lower levels of demand and a resetting of price expectations for homeowners are expected to result in a more balanced and slower market in 2023. We expect home sale prices in the areas we serve to increase slightly in 2023 with the overall level of sales activity decreasing as both buyers and sellers work to adjust to the new reality of the real estate market after the frenetic conditions that existed for the past 2 1/2 years.

Curious to learn more about what is happening in the local real estate market and what that means to you as a homeowner or prospective buyer? If you have questions about your current home value, where the market is heading, or just have general real estate questions, let’s connect! I’d love to discuss your goals and the unique opportunities you have in today’s housing market!

~ Amy

Our Recently Sold Properties

Local Market Stats

We hope this information will give you some clarity about what’s happening in the real estate market so you can make an informed decision that is best for you and your current situation.

We would love to be a local resource for you! If you are considering buying a home, selling your current home, investing, or just have questions or concerns about the real estate market, please don’t hesitate to reach out.

We are here to help and serve!