We are proud to present you with this synopsis of the national, regional, and localized trends that matter most, found here in our Roanoke 2023 Annual Report.
With interest rates continuously rising throughout the year and the lack of inventory, the overall performance of the market in Roanoke was down significantly over 2022, about 20% in homes sold and 17% in volume. Prices continued to appreciate, but at a lower rate than in the past couple of years. Sellers who are locked in at substantially lower interest rates are unwilling to sell their homes and pay more for a new one with a higher interest rate unless they absolutely must.
This means buyers are left with little inventory to choose from and in many cases are still in a competitive bidding market. At Nest Realty Roanoke, we continue to educate our agents and clients on the status of the market and the best strategies to succeed with their real estate goals.
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.