Housing Market Report - Q1 2023By Ricardo Lavariega
Sales in the first quarter of 2023 have dropped 25.5% from 34,376 sales in 2022 to 25,597, a difference of 8,778.
January sales dropped 35% from 10,385 to 6,801.
February sales dropped 24% from 10,031 to 7,618.
March sales dropped 20% from 13,959 to 11,178.
Interest rates were at an average of 3.8% in Q1 2022 compared to 6.4% in Q1 2023 bringing affordability down for buyers. At the same time, sellers also do not want to let go of the low interest they locked in when they refinanced or bought when rates were lower than they are now.
The median sales price has not changed these last couple of months compared to the same last couple of months last year. Although, in January, the median sales price dropped 1.9% from $237,500 to $233,000.
Depending on where you’re located, prices may have slightly risen or dropped. With the government trying to tame inflation by raising the interest rates over the last year, buyers' buying power has been lowered keeping prices still. There is still a short supply of properties and there is still a high demand, there are just less buyers buying due to a decrease in affordability. Inventory is relatively the same as last year as well.
The average days a home is on the market has slightly increased compared to last year.
DOM for January increased 5.1% from 39 to 41.
DOM for February increased 4.9% from 41 to 43.
DOM for March increased 8.3% from 36 to 39.
Due to less buyers buying, homes are beginning to sit on the market a bit longer while sellers are trying to adjust to the new level of activity taking place this year.
The 30-Year Fixed Rate Mortgage Average in the US has been dropping for the last 5 weeks in a row, from 6.73% on March 9th to 6.27% on April 13th, although as of April 20th it has risen again to 6.39%. Buyers should take advantage of this before rates continue to rise and sellers should as well.
There are less sales occurring and homes are staying on the market longer so sellers should look for guidance from a REALTOR to price their home accordingly.
If you or anyone you know is interested in buying or selling in the Walworth and McHenry Counties or the surrounding areas, feel free to reach out to me. I can provide you with more information and can help you achieve your real estate buying/selling goals.
REALTOR | Resort & Second-Home Specialist
223 Cook St, Suite J
Lake Geneva, WI 53147