2022 is coming to a close, and for many that provides a great chance to reflect on the previous year. Looking backwards can be especially useful if we use that knowledge to help shape our expectations for the coming year.
Jodie Cordell, a licensed real estate agent in Florida, recently wrote in an article for The Close, Real Estate Stats Your Homebuyers Will Want to Know in 2023, and many of these statistics make me think back on this year and my previous years experience in real estate. I will be using Jodie’s stats as a jumping off point, as most of this information is relatable to our local market as well.
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In today’s market, homebuyers searched an average of 10 weeks for a home. That’s an increase from eight weeks during 2020 and 2021, an indication that the market is cooling slightly, giving homebuyers a better shot at getting into a home they love. This increased time frame for homebuyers in the Chattanooga area through the early and middle parts of the year was much shorter. However, in the last few months we have seen this timeframe increase due to rising interest rates and inventory shortages. Recently, the overall period from first introductions to the day an offer is being accepted is more in line with the 2020 and 2021 numbers in the greater Chattanooga market.
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In 2022, homebuyers typically purchased their homes for 100% of the asking price, with 28% purchasing for more than the asking price. This statistic is relatable in the Chattanooga area as well with continued migration trends from homebuyers from other states and business growth. Inventory shortages throughout 2022 caused a competitive market in Chattanooga with strong homes sales at or above list price.
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April is the most competitive month of the year for homebuyers. According to Realtor.com, there is a 29% surge of listings during April, and homes typically sell for higher during that month, as well. In the Chattanooga market we see a few periods during the year of surging homes coming onto the market, with early spring and late summer always competing for the hottest market for sellers to be ready to list their home with a Realtor.
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The median home price in 2022 is $357,300. That’s a $46,700 increase from January 2021 to January 2022. We have seen a similar increase in the median home price in the greater Chattanooga area as well. The 2022 Market Report will be released early in January and I am interested to see how these numbers compare, so stay tuned.
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Typical recent home purchases were 1,900 square feet with three bedrooms and two bathrooms, and built in 1993. I find this statistic very interesting and have begun the process of digging into our local data to compare what our average size and age of home was in 2022.
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The median listing price grew by 13.0% over last year. But signs show that home price growth is moderating. This information is not surprising and in the greater Chattanooga area we have seen the median price increase as well. This increase is forecasted to continue, but with a softening or leveling compared to the spike we experienced in 2022.
- Twenty-nine percent of first-time homebuyers cite “saving for a down payment” as the most challenging part of the home buying process. This is a challenge that we will continue to see increase with rising inflation and the cost of living increases. I know from real life conversations that young families are struggling with saving for their down payment. Many have had to postpone being able to purchase their first home. Thankfully there are some great mortgage lenders offering programs to assist many of these buyers and I hope that 2023 brings even more assistance.
The year is coming to a close, but many of the topics and issues we’ve discussed are sure to remain in 2023. That’s why utilizing the expertise of a Realtor® in your real estate transactions is so crucial. The market may shift, but the ease of mind when working with a Realtor remains the same, year in and year out. That’s Who We R®.