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Check Out the Q1-2023 Quarterly Market Insights

Welcome to another installment of our Quarterly Market Insights, featuring interactive slides using single-family and condominium listing data from Pinergy. There’s never a dull moment in our industry! 2023 certainly started the year with some challenges in the market. With the federal government’s involvement in raising interest rates, they successfully cooled the market, but by doing so, they priced out some buyers who started 2023 on the sidelines. The great news is that these buyers have reengaged, with rates retreating as we moved further into the first quarter of 2023. I read many reports of many buyers out and aggressively looking again. However, the inventory issue continues to frustrate buyers. The results of coming out of a great refi market have possibly frozen sellers in their current homes and rates. Sellers with a sub-3% rate are content to stay where they are, riding out the affordability while inflation hits their other expenses.

Let's look at some of the results in the graphs: For Q1, single-family sales were down 22.3%, while average and median prices continued to rise at 3.36% and 1.90%, respectively. Certainly, the pace of increase slowed due to the rate increases. However, the continuation of prices rising was due to the lack of inventory and the competition still out there for a limited number of listings. However, a bright spot for buyers is that average DTO (days to offer) hit 35 days, which we have not seen since pre-pandemic times.    While it may not feel like it, as you can see in slide 3, weekly inventory has been outpacing 2022.   Total single-family sales volume retreated to the level of 2019. Average sales price and median price continued to rise, but the number of units sold dropped to a point bringing volume back to pre-pandemic levels.   The biggest tell in this market difference compared to last year is on slide 6, YOY Q1 Monthly New SF Listings. As you can see, January was very close to 2022, February new listings were off 22% compared to 2022, and March was off 23%. I am hearing reports that April does look different. With the numbers of CMA requests and calls in the field, it will be interesting to see if the trend reverses in Q2.

As we move into the most vibrant time of year for our market, it is clear that this year will be different from all the rest, but there are great possibilities as consumer outlook continues to improve. The Fed may be raising rates one more time, and that could be enough to end the rapid climb and release a lot of positivity in the markets.  There is always great excitement for the spring market each year, and 2023 will surely not disappoint. For sellers, there is still tremendous demand for their property, and I believe we are moving towards a more normal market again. I wish you all great success as we all navigate through a market of great hope and possibilities. My best to you all,

Erminio Grasso President and Chief Executive Officer