Comparing 2022 to 2021 | 1/5/23
Happy 2023! We’re looking forward to an interesting real estate year!
Despite increases in interest rates, high inflation, a volatile stock market and concern over world issues, 2022 closed stronger than 2021 on average. Of course, this is a 12-month look-back which could change when we review each month in the coming year. We’ll continue to look at what effect these circumstances have on the real estate market.
As in past reviews, I look at Chittenden, Franklin and Grand Isle counties. I consider numbers of single-family homes and condos together, evaluating any increase or decrease in the average and median sales price, percentage of the final asking price that Sellers received, and average days on market.
In Chittenden County, the average sales price and the median sales price increased 12% year-over-year. The average sales price in 2022 was $519,320 and the median was $450,000. The increase in average and median sales coupled with an increase in interest rates has surely driven some buyers out of the market. But many, if they qualify at today’s rates, are buying knowing they can refinance when the rates drop.
2074 properties sold in 2021 and 1778 sold in 2022, for a decrease of approximately 14% in sold properties. Fewer homes sold but the average sales price increased. In both years, Sellers received over asking price but received on average 2% more over their asking price in 2022 than in 2021. The average days on market fell from 26 to 19.
There are currently 87 single family and condos combined for sale in the Multiple Listing Service. Last year, an average of 148 properties sold each month. We have approximately a 2.5-week supply of homes on the market in Chittenden County. This means that if no new properties come on the market, the current supply would be eliminated in 2.5 weeks. This is an indication of a Seller’s market. However, historically, this is a low time for people to list their homes. The inventory should start to increase in later February and early March.
In Franklin County, we have a similar picture. The average sales price rose 10% and the median sales price rose almost 11%. The average sales price in 2022 was $340,085 and the median was $325,000. We are seeing more affordable housing in Franklin County.
In 2021, 726 homes sold compared to 598 in 2022 for a decrease of 17.6%. Again, fewer homes sold but the prices in 2022 were driven up higher than in 2021. In both years, Sellers received over their asking price on average. Days on market decreased from 43 in 2021 to 31 in 2022.
In Grand Isle, where there are always fewer sales to evaluate, the average sales price increased from $420,555 in 2021 to $483,155 in 2022 for an increase of 13%. Average days on market decreased by a whopping 40% in 2022 from 65 in 2021 to 39 in 2022. Sellers received 101.87% of their asking price in 2022 compared to 98.11% in 2021. Number of sales decreased 17% from 168 in 2021 to 139 in 2021.
You are likely shocked to hear that year-over-year there continues to be an increase in average and median sales price; a decrease in numbers of properties sold and days on market, and an increase in the percentage over asking that Sellers received. This would appear to continue to be a strong market for Sellers. However, we will want to look at January and February statistics to get a better idea of how economic factors have influenced the market.
People ask us, “Is this a good time to buy?” We respond, it depends on your situation – do you need housing because you are moving here? Are you bursting at the seams with your current housing? Will you be in your house for a few years? Do you really want to keep renting and paying your landlord’s mortgage? Yes, interest rates are higher than a year ago. But if you can afford the current rates, consider refinancing when the rates go down. What if prices continue to rise? Wouldn’t you want to get into a house or condo now rather than take a chance that you will be priced out later?
Is it a good time to sell? The statistics say it is. But pricing realistically makes all the difference. Don’t try and make a killing. Price to the current market and if buyers push up the price given competition, you’ll get over asking. We can help you determine a range to list your home and give you comparable sales to support our suggestion.
As always, if you would like a market analysis, we are happy to provide one free with no obligation.
Happy New Year! Here’s to a healthy and prosperous 2023.
