Bold Predictions for the 2023 Real Estate Market
Average Sales Price
Months of Supply
Average Days on Market
Sale to List Price Ratio
The average home sales price in Sanford, NC was $306k, which is down from a peak of $331k in March of 2022, but up significantly from the $278k recorded in December 2021.
Further, the period from June 2022 - December 2022 showed a steady average home sale price between $306k - $312k, which is great news for a period of time when interest rates doubled and many thought home prices may decline rapidly.
The short summary is that inventory remained low enough that home prices, although they declined some, did not have a huge drop that some anticipated.
There are 149 active listings on the market as of this writing and in December 2022, sixty-four new listings were added to the market, while 74 went under contract.
That difference is why home prices remain level and we aren't seeing a decline. We have more homes going under contract than are being added to the market, which will keep inventory low and home prices in check.
With so many jobs being created in or near Sanford over the remainder of the year, I predict we'll continue to have steady population growth. Steady population growth will continue to increase demand in a market that already has low supply. This will keep home prices stabilized and I believe they'll start to appreciate again as we go into the typically hotter spring and summer markets.
Mortgage rates have peaked in my opinion outside of short term fluctuations and we've seen a downward trend for 5 weeks in a row. Volume is way down across the board from last year, which has resulted in a lot of mortgage companies to downsize their underwriting and support staff and to restructure their workforce. The drop in volume has also forced the industry to become more innovative, with advertising and program developments like the buy-down options, adjustable rate mortgages and other special programs designed to help make it more affordable and practical for people to buy homes.
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Here are a few of my predictions for the Sanford NC and Surrounding Areas real estate marketing going into 2023.
Level, then Increase
The average sale price will remain level for the next few months and then start to increase in the spring and summer months. Right now, interest rates are trending down, but sellers are still hesitant and buyers haven't jumped back in after the winter/holiday season. As interest rates continue their downward trend, more and more people will be coming back into the market, which will cause home prices to start to increase again.
Supply will remain low
Our inventory will remain low. Sellers are locked into lower interest rates and while some will sell, many are on the fence. Our tremendous job and population growth will keep demand and sales constant. With the huge millennial generation moving into prime home buying years and our area continually knocking it out of the park in terms of job creation, our demand will remain high and our supply will remain low for years to come.
Days on market will increase slightly
Buyers are more patient right now, have more new construction options and are still coming to terms with the new "normal" for interest rates. They know they have a little more leverage than they did in the last couple of years and that will result in them being pickier, picking their spots and homes sitting on the market a little longer.
Some under, some over
For sale to list price ratio, I think we'll still stay between 97-100%, with some properties selling under asking price, most at asking price and some above asking price. Buyers can be pickier, so the more they can find wrong with the property, the more likely it is to stay on the market longer and result in an under asking price offer. Properties that check every box are still going to be a hot commodity and it's still common for those properties to go above asking price.