Welcome to 2023! As we start the new year, the real estate market is once again shifting.
Yes, just like how the water level of Smith Mountain Lake fluctuates, so does our market.
This month, I am sharing with you some well-researched statistics on how the real estate market reacted during 2022, as well as projections for 2023.
Interest Rates and Inventory
After a historic run, with home sales and prices reaching record highs, the market is starting a gentle shift.
Mortgage interest rates continue to be affected by Federal Reserve decisions to address inflation. 2022 saw rates go from less than 3% to 7% to back in the 6% range. Experts predict rates will adjust downward in 2023, with some saying it will decrease to the 5 % range.
Inventory at Smith Mountain Lake is still low but starting to see signs of growth. Buyers now have a few more days to make their decisions and may be able to ask for seller concessions, as well.
Sellers who price their homes correctly will be well positioned in the market. Now is still a great time to sell before the market shifts to a more neutral state and more inventory becomes available. There is still a surplus of buyers.
Sales Projections for 2023
2022 was a very active year in sales. However, the number of properties sold decreased by about 28%, similar to 2015 and 2016. But the overall prices were about 8% higher than 2021.
Economic experts predict prices in 2023 will tick upwards about 1% or stay stable. They also believe the market will continue to shift from a strong seller’s market to a more neutral market as we go through 2023. This should translate to homes staying on the market a little longer and more properties becoming available.
A neutral market is one where homes take about 6 months to sell. In December, lakefront homes at Smith Mountain Lake took an average of 42 days to go under contract. The average for the year was 34 days, compared to 2019’s pre-pandemic average of 215 days.
It’s important to remember that there will always be buyers and always be sellers no matter the market!
Additional Resources
I am also sharing with you below a couple of websites where you can find additional, easy-to-understand information on mortgage and real estate statistics.
The team at Deb Beran Properties is here to answer any questions you may have about the Smith Mountain Lake real estate market and help you through every step of your future home sale or purchase. Please feel free to reach out to us any time!
~ Deb
P.S. For detailed information, check out my Smith Mountain Lake Market Report, which is updated monthly!
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