Looking Ahead into 2023
Good evening!
Happy belated New Year to you from the team at Island Pineapple Realty! There is plenty of speculation on what is going to happen to the Brevard County real estate market in 2023.
Some say, “The market is going to crash, interest rates are out of control, the economy is doomed, we are going to run out of food, and we should all be buying guns and ammo to prepare for the apocalypse!” Others say, “There is a housing shortage, people are moving to Florida by the thousands every day, prices aren’t going anywhere fast.”
The truth is that nobody can predict exactly what will happen to the market locally over the next six months. What we can do is look at the concrete data available at our fingertips to form our own informed and educated opinions.
Here is a snapshot of the current residential real estate market in Brevard County:
2022 as compared to 2021
Median sales price of single-family homes increased by 16.9%
The number of single-family homes sold decreased by 11.9%
The average days on market for a single-family home was 13 days, compared to 11 days in 2021
The supply of inventory increased by from .9 months in 2021 to 2.3 months in 2022
December 2022 as compared to December 2021
Median sale prices increased by 8%
The number of single-family homes sold decreased by 24.4%
Average days on market increased from 13 days to 28 days
The supply of inventory increased from 1.1 months in 2021 to 2.7 months in 2022
OK, deep breath. Let’s process this… It’s clear the market has slowed down significantly the past few months. The number of transactions occurring is down by almost 25% since last year. Why? Mortgage interest rates increased dramatically – we have been spoiled with ridiculously low rates from 2-4% over the past several years. Recently rates peaked in mid-October and we saw 7-8% for a 30 year fixed loan.
Luckily we have seen the rates come back to earth a bit and have trended down, currently hovering right around 6%.
What does this mean for making a move this year?
If you are considering selling, you can still cash-in the tremendous equity you have stored the past several years. Believe it or not, we are still in a seller’s market. A real estate market is considered balanced when there is 4-6 months of inventory available. Current inventory has remained stable, at under 3 months. Homes priced correctly are still selling. We may no longer be seeing bidding wars on the first weekend a home is listed, but the average time on the market was only 28 days last December.
Houses are often the biggest investment you will make in your lifetime. It takes courage to make moves, but don’t be paralyzed in fear by what you hear in the news or on social media. Look at the data, consult with a trusted real estate professional and make a decision that is best for you and your family. Consider the lifestyle you want and find a home where you can #LoveWhereYouLive.