Now that the dust has settled on the 2022 real estate statistics the question is…. what do we expect throughout the rest of 2023?
This is what is called a NORMAL real estate market.
It was not normal what we experienced through the last two years. Not normal to have had a 46% increase in median price in just 24 months prior to leveling in late summer 2022. At no other time over the last 30 years of data is that much of a increase found! Not normal to have property sales financed with standard mortgages without an appraisal. 3% fixed rate interest for a 30 year mortgage even on investment property…. NOT NORMAL.
A normal market is what we’re seeing so far, and indications are it will stay more normal over the next few years. That said, we still have a housing shortage nationwide.
Here in the Greater Nashville area which is comprised of 8 counties, we ticked below a 2 month supply of inventory in December. That was unprecedented in the Nashville Area housing history.
We expect the shortage of housing here through all of 2023, and predicted it could be with us for years to come.
We don’t have the crystal ball for interest rates, but do follow the top industry leaders closely. We agree that there are many more reasons to believe there will be slightly lower more stabilized interest rates by early summer.
This combined with the many incentives being offered now by lenders, pent up demand, and a shortage of inventory positions us we believe for a huge surge in home sales.
What we expect for 2023? A stable, solid real estate market.