Market Snapshot – May 2023

The month of May saw further increases in the sale price of housing which is anticipated to continue as demand is still outpacing supply (inventory). Larry Cerqua, CREA’s 2023-2024 Chair stated that, “over the last few months, there have been signs that housing markets were going to heat back up this year, so it wasn’t a surprise to see things take off after the Easter weekend, which often serves as the opener to the spring market”.

 

Though the month-over-month increase is not significant enough to plaster all over news outlets, the consistently small increase each month since January is a significant reflection that consumers are feeling more confident in entering the market again.   CREA’s Senior Economist, Shaun Cathcart said that “with interest rates at a top, and home prices at a bottom, it wasn’t all that surprising to see buyers jumping off the sidelines and back into the market”. But with supply a little lagging, buyers are finding themselves in competing situations for certain homes.  It isn’t the frenzy we saw during the Pandemic, but some homes just have that something that buyers are drawn to and it only takes two buyers to make a competition.  That being said, there are also homes sitting longer on the market or accepting offers with conditions, whether it is a condition of finance or even the condition of selling the buyer’s home.

 

Most residential properties are selling within two weeks and for over asking.  We are also noticing though that single-family detached homes listed over $800,000 are often the homes where there is less competition, likely reflective of the higher interest rates.  Buyers who were once able to afford these higher price tags when borrowing costs were lower are now finding that their buying power has weakened forcing them to look at homes below that $800,000 mark, which is making the demand for single detached homes between $500K – $800,000 a hot item.

If you want to discuss what’s happening in the market, or maybe the process of buying or selling, I am always ready to have that conversation.  All you have to do, is reach out by filling out the form below and we can chat more over coffee. And be sure to follow me on Facebook or Instagram for all the behind the scene and up to the minute news.