Here’s a quick recap of the trends we saw in the 2023 real estate market.
Let’s reflect on the rollercoaster ride that was the real estate market in 2023. Today, we’ll go over key statistics, focusing on home sales in Jefferson and Shelby County for single-family homes.
1. Fewer homes on the market. In 2023, there was a notable decrease in the number of homes entering the market, with approximately 15% fewer homes compared to 2022. This trend extended to homes sold, showing an 18% drop. The market experienced a significant slowdown in transaction volumes.
2. Days on the market. One striking change was the increase in the average number of days it took to sell a home. While 2022 saw an average of 17 days, 2023 witnessed a substantial jump to 29 days — a 70% increase. Although historically reasonable, this shift marked a departure from the faster pace of recent years.
“2023 was marked by reduced inventory, a slower sales pace, and stable home prices.”
3. Home prices and sales price ratios. Contrary to the surge in previous years, the average home price in 2023 remained relatively unchanged from 2022. Home prices saw a modest increase, indicating stability. Additionally, the ratio of final sales prices to listing prices remained consistent in 2023, mirroring the trend observed in 2022. Sellers could expect a comparable final sales price to their listing price.
4. Inventory dynamics. The concept of buyer’s and seller’s markets revolves around inventory. In Jefferson and Shelby County combined, the market maintained a seller’s market status with approximately 2.5 months of inventory. For context, a seller’s market typically has less than five months of inventory, while a buyer’s market exceeds seven months. The current inventory indicates a robust market, requiring a significant increase to transition into a buyer’s market.
While the market still favors sellers, the dynamics have shifted compared to recent years. If you have specific questions about your neighborhood or seek further clarification on these trends, feel free to reach out via email or text. Staying informed is key to making informed decisions in the housing market.
