Goodbye 2022, and Hello 2023!
2022 was a wild year. We’ll take a look back and try to predict 2023.
Today, we’re here to recap a wild year in real estate last year, 2022, and then talk about where things are heading or what seems to be a different 2023.
Last year was a roller coaster. Prices went way up, and then they came down, not way down, but they did come down. That was all driven by interest rates. Jerome Powell, the Fed chairman, said, “I'm going to curb inflation. I'm going to take a direct attack at interest rates.” And he did it, and it changed Charleston real estate. Look, home prices in the later months of the year, we're talking October, November, and December, did dip because the number of sales dropped by 30% in those months prior to the year before. But here's the thing: As we look into 2023, what's going to happen? I think interest rates peaked in November of 2022.
"We’re here to recap a wild year in real estate last year."
We've watched them come down since November 2022. We're now in the 6% range instead of the 7% range, and inflation continues to come down across the country. What does that mean? If inflation keeps coming down, interest rates will decrease because the whole plan of raising interest rates was to curb inflation. Now, what does that mean for home prices in Charleston? We still have a shortage of inventory. People still want to live in Charleston, South Carolina. Buyers are moving here from the northeast, the Midwest, and from the West. Everyone is still coming to this town. And we have fewer than 3000 homes on the market as we enter this new year.
Here's the other good news for home sellers. Prices in January 2023 are actually higher than they were in January 2022. So it is a better time to sell for top dollar if you hire the right agent who knows how to market your home right than it was last year at the same time.
And what's this mean for buyers? Well, there is three times as much selection for you. Last January, we had about 1000 homes on the market, and this January, about 3000 homes. You have more selection now. Where do I think prices will go? Again, I don't have a crystal ball, but my best guess is interest rates will continue to tick down, maybe get into the low fives by the end of the year. And I think prices in Charleston will maintain a relatively flat position, maybe go up just slightly by the end of the year.
That wraps up my market prediction for 2023. If you have specific questions or you want to talk about your house, reach out to us. You can go to mattoneillrealestate.com or give us a call at (843) 619-0401. We're here to help!