2022 was a rollercoaster ride in the market and December was no exception.

Today, we will talk about the real estate market in December 2022. A lot has changed, and we’re here to keep you informed. 

First, know that there were 21,606 homes on the market this year compared to 12,906 last year. That's a 67.4% increase in active available inventory. However, new homes on the market slowed down to 4,914 this year compared to 7,098 last year, which is a 31% decrease. The number of homes sold also decreased from 9,268 last year to 5,136 this year, which is a 45% drop. Lastly, inventory went from 1.39 months last year to 4.21 months this year. That's a 302% increase in the month's supply of inventory. 

Overall, fewer homes are coming on the market because some sellers don't want to give up their great interest rates, they have a lot of equity, and they’re comfortable where they're at. Also, the number of homes sold is down because many buyers don't qualify with today’s higher interest rate, which is around 6.5%. 

However, there are some good things going on. Last year, we had multiple offers in bidding wars, and homes were going $50,000, $75,000, and $100,000 over the asking price. You could sell your home and get top dollar, but it was a nightmare to find a home, and if you did, there were 15 other offers on the table. Now, you can sell your home for the appraised value, find a home, purchase it at the appraised value, and get a rate under 7%, which is still historically low. 

“Most sellers have a lot of equity, which helps in today’s market.
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Also, most sellers have a lot of equity, so they can make the move and buy another property at today’s 30-year fixed rates. Recently, I was doing math with someone over the phone, and his payment didn't change even though he has a 2.5% interest rate on his current house because he has so much equity and so much money to put down, so his payments are about the same.

If you're considering buying or selling a home, I can be your real estate expert. I'd love to help you run the numbers to see if a move makes sense. Call or text me anytime at (602) 738-9943. I look forward to hearing from you.