We are proud to present you with this synopsis of the national, regional, and localized trends that matter most, found here in our Morganton 2023 Annual Report.
Since opening Nest Realty Morganton three years ago in the Fall of 2020 (remember 2020?!), the real estate world has been wild! Housing needs and preferences have shifted due to remote work and a reprioritization by many for more work/life balance. Mortgage rates have moved from all-time-lows to 25-year-highs. We’re seeing days on market tick upwards in most areas, but we still see desirable properties in desirable locations going under contract within a few days, and occasionally with a multiple offer situation.
In the world of real estate this remains true: markets shift, trends evolve, and consumer behaviors change. But what remains constant through it all is our dedication to our clients and our community.
We continue to make a meaningful impact within our community by supporting local nonprofit organizations like Blue Ridge HealthCare Foundation, Foothills Conservancy of North Carolina, Burke Arts Council, and others. We continue to elevate our profession. Since receiving an award for our dedication to Fair Housing Training by NC REALTORS in 2021, our local board implemented this training as part of its orientation program. We continue to love on our local small businesses through our Local Love social media campaign, highlighting businesses which make our community unique, attractive, and successful. (Check out our office stats!) Thank you to each and every one of you—our clients, friends, colleagues, and advocates for your continued support!
MARKET OUTLOOK – LOCAL LEVEL
At the beginning of each year, we engulf ourselves in the sales charts, devour the data, look back at goals set, and check in on how our predictions for the past year held true. We do our best to learn from the past and prepare our clients and agents for the new year ahead. 2023 in the real estate market reminded us of the old saying, “The more things change, the more they remain the same.” It was a year of change in the real estate market for sure, but the fundamentals did not change.
What did change in 2023? Mortgage interest rates went up significantly putting some buyers on the sidelines due to affordability. At the end of 2023, mortgage rates trended down over the last four data points. So much so that the National Association of Realtors economists stated that mortgage rates have peaked and could head back to the 6% range early in 2024. Sellers had to price properties more competitively, offer concessions, and homes stayed on the market longer.
What stayed the same in 2023? Home inventory rose minimally over the past year but still remained at historically low levels. Sellers held on to properties longer and new home starts remained significantly under what was needed to help balance the market. The fundamentals of supply and demand remained the largest headwind for the real estate market.
2024 is predicted to be an interesting year for the real estate market. With mortgage rates coming back down, most likely in the 6% range, more buyers are predicted to re-enter the market. This will most likely re-energize buyer competition for the homes listed for sale in 2024.
Visit us at NestRealty.com for more information.