We are proud to present you with this synopsis of the national, regional, and localized trends that matter most to you, found here in our Jackson 2023 Annual Report.
Real estate conditions can change rapidly and are influenced by various factors such as economic trends, local development, and market demand. In 2022 we saw home prices maintain their values and prices began to level off. This carried us into 2023 where we saw a slight increase in inventory and longer days on market compared to the previous couple of years.
Additional inventory helps to ease pressure on home prices, leveling them off which helps settle prices back somewhat from peak levels. In the end of 2023 we began to see just that in our Jackson MSA market. By the beginning of the 4th quarter there had been a 2% reduction in home sale prices vs. home list prices. Increased mortgage rates continued to be a factor causing many buyers to sit tight. While home prices have certainly held firm this past year, the volume of home sales has softened considerably. Existing-home sales in September 2023 declined to an annual pace of 3.96 million, according to the NAR data, which represents a 15.4% drop year-over-year nationally. However, these home trends may pivot in 2024 if mortgage rates taper off slightly. The Southern U.S. should continue to see an increase in home sales overall since geographically these areas tend to be more affordable. Yet affordability continues to be a national concern.
The year 2023 began much differently than it ended. During the first half of the year, we were seeing record-breaking inventory lows, coupled with low mortgage rates, and high buyer demand. In short, houses were selling quickly, often far over the asking price. By the end of 2023, we faced rising mortgage rates and a drastic cooling off, with more days-on-market. The fact that the market has cooled from the frantic highs of 2022 and early 2023 is not a surprise. But the speed of how quickly things shifted, is surprising. And while we’re not in the business of predictions, it is our hope that we’re heading toward a more balanced market where both buyers and sellers have the time to make well thought-out decisions. With that, let’s look through the 2023 data to gain a deeper understanding of where we’ve been and where we are now. In this report, we start off with an overall snapshot of the national market, then take a closer look at what’s happening in our local market. Understanding both the national and local trends can help us better interpret your home’s value and where the local market is potentially headed.
