 Happy New Year! Hi All, I hope you’re having a great start to the New Year. As we enter 2023 I wanted to take a moment to review what happened in the 2022 real estate market and also give some insight on what we can expect to see this year. In 2022 we saw the following 7 interest rate increases:  As rates went up, buying power went down and with that so did average sale prices. This was definitely needed in order to bring the market back to a more reasonable and level playing field. December was a slow month to end off the year. Durham’s average sale price decreased to $874,456 in December (from $892,677 in November). The total number of sales for the month dropped significantly from 564 to 380. December is known to be a slower month due to the holidays, so this was not unexpected. The sale to list price ratio for the month remained at 100%, meaning that listings are being priced right around market value and sale prices are generally ending up near list price.  Moving into 2023, we should see the number of homes on the market start to increase very soon. I believe that we could actually end up having a busy spring market as people continue to adjust to the higher interest rates. Interest rates increases should come to an end soon (hopefully), and after that prices will start to level out month over month. I personally think that we could even see average sale prices start to increase slightly towards the end of this year. That being said, there could not be a better time for first time buyers to get into the market at these lower prices, especially with less competition and the ability to include conditions in offers such as financing and home inspection. Interest rates will eventually start to go down again, and when they do a better rate can be secured when it comes time to renew your mortgage. If you are looking to sell in 2023, it is important to manage your expectations and work with an agent who will educate you on the current market. Homes generally sit on the market for a longer period of time before selling (average 21 days in Durham right now), and it is absolutely crucial to have your home prepared and marketed properly so that it stands out above other listings. Full staging, a paid marketing/advertising campaign, and high quality photo and video content are just a few of the key services that are necessary in order to have success selling in this market. Make sure you work with an agent who offers all of this plus more. Feel free to contact me any time if you have any real estate related questions or are thinking about buying or selling. All the best in 2023!  Brad D’Ornellas REALTOR® Royal LePage Frank Real Estate, Brokerage Cell: 289-675-4882 Email: brad@braddornellas.com Website: www.braddornellas.com  |
