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 Richmond_2022 Annual Report.
MARKET OUTLOOK – NATIONAL LEVEL
With our Nest Annual Report, we aim to provide the most useful information possible, as every homeowner needs to keep tabs on their investment, and every potential shopper needs to be informed before embarking on such a major financial decision. Locally, we study neighborhoods, builders, and development trends, but on a national level, there are three trends that year-in and year-out are a fantastic indicator of the overall health of our national economy, and by extension, the housing market: Mortgage Rates, Consumer Confidence, and Unemployment Rates. Looking at these numbers allows us to make predictions of what we should expect to see in 2023—which is a more stable real estate market. Mortgage rates have increased more quickly than economists had predicted, but they still remain in an affordable range, historically speaking. And while consumer confidence is down entering 2023, it has been trending upward since June 2022. And finally, unemployment is running extraordinarily low, which points to potential real wage gains in the coming year, benefitting average consumers.
MARKET OUTLOOK – LOCAL LEVEL
The Richmond market in 2022 was anything but predictable. Our market was driven in opposite directions by the national trend of interest rate hikes and local news on the effects of hybrid work environments. It was a tale of two markets, punctuated by an early Summer spike in interest rates. An overflow of showing requests and bidding wars were the norm at the beginning of the year, but shifted by the end of summer. In one week in June, the 30 year mortgage rate rose 0.5% to hit 5.78%, the highest level since November 2008. The buying frenzy certainly slowed, but an abundance of qualified buyers and a shortage of available homes on the market left the Richmond market active. Limited inventory negatively impacted the number of sales throughout the year, and sellers benefited tremendously with price escalations and short times on market. When we look at the number of sales in 2022, detached homes sales were down in 16 of the 17 MLS areas in Metro Richmond for the whole year, while prices were up in all 17 areas.
So what will 2023 bring? We expect enough qualified buyers in the market from out-of-town or downsizing to purchase new listings, and mortgages are readily available. While the year ahead may be slower than 2021 or 2022, we may return to a more balanced market, which would be great for both buyers and sellers.
–At Nest Realty Richmond we measure success by the happiness of our clients, not just the number of homes we help sell. And that means our Nest County Fair (and the volume of mac n’ cheese we serve) is cause for celebration. At Nest, we are all about intentional and strategic growth. As of 2022, we have 451 Nest agents buying and selling throughout 23 offices in 17 locations, spanning seven states across the U.S. With each new office that opens, we are able to expand our reach, better serving you, our incredible clients.