A lot has changed in our market in the past year, so stay informed.
We're in 2023, can you believe it? As we enter the new year, I’m going to recap 2022, because as I've mentioned before, the year was quite the roller coaster. Peaks rose even further and then the market started to correct, so I am going to share some of the important highlights.
At the beginning of 2022, we were still in a turbulent environment. Everything was going on and off the market in a matter of days, there were multiple offers, and people were overbidding like crazy. Then, that started to subside as interest rates got too high. After that, price points started to go down, and we are currently in a healthier market.
In addition, buyers are going after lower-priced and/or smaller properties more and more. Therefore, the average price per square foot is increasing. The condo market has been doing better—it appreciated 14% year over year, whereas single-family homes finished the year around 9%.
“We are currently in a healthier market.”
Another thing that changed throughout the year was the number of transactions, which came down quite a bit to almost half of what it has been. However, inventory levels haven't increased very much, as there are also fewer sellers putting their homes on the market.
The amount of cash in the market is still pretty strong and healthy at 20% countywide, and in some of the luxury markets, that number is around 40%. This makes sense as many sellers and affluent buyers were reluctant to put their money in the stocks because the stock market has been schizophrenic.
Expectations for property conditions also changed last year. Properties that are fully remodeled and turnkey are still getting a premium price. A lot of buyers are going for that kind of property because they don't have to do anything to it. However, if a buyer is willing to take on that project or just parlay it for a later date, negotiations can be made. Therefore, I recommend buying a house that needs to be remodeled, maybe doing a few small things to it, living in it for a little while, and then taking on the remodel after the market and inflation settle down a little bit.
If you want any more in-depth information, whether or not you're looking to sell or buy in 2023, reach out to me at (619) 200-3236 or on my website by clicking here. I look forward to hearing from you!