Welcome back to the monthly series, How’s the Market? 2022 is officially over and I think we are all ready for a fresh start. Let’s start by looking at the key market stats for the DC area.
Inventory
The pace of sales is good – Montgomery County, PG, Fairfax, Loudon, Alexandria City are all under 2 months of inventory. These are still a seller’s market. That’s the good news.
November Market Stats show that home sales fell 35-40% in most jurisdictions. This was the lowest amount of sales volume in November since 2015.
Days on market are increasing. Original list price to sales ratios are 97-98% instead of 99%+.
Fed Rates
The Fed raised the rates 50 basis points (not 75 points). The Feb hike is probably going to be 25 basis points. This indicates that their efforts are working and the hikes are slowing down.
In 2022, mortgage rates doubled. They rose to 7% and then fell 1/2% point.
Maryland My Maryland
Removing DC from the picture, this is how Maryland is doing.
What does 2023 look like?
Bright MLS, our local MLS, predicts a drop in sales of 5% in 2023.
The market is poised to continue its transition throughout 2023. However, the major metro area housing markets (like DC) in the Mid-Atlantic are in a better position to avoid a major market correction than many other U.S. regions.
Sources:
Bright MLS. November 2022 Marketing Kit. Dec 12, 2022. Lisa Sturtevant.
Bright MLS. November 2022 Market Report. Dec 12, 2022. Lisa Sturtevant.
Michelle Powstanski, Main Street Home Loans. Internal conversations on rates.
Effective Inventory created internally by and for TTRSIR. Dec 2, 2022.
