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 Shenandoah Valley_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
In 2022 we saw a tale of two markets—the market we experienced for the first nine months of the year, and the market we experienced in the final three months of the year. From January to September we saw unprecedentedly low interest rates, historically low levels of inventory, and large jumps in appreciation of home values. We attribute 2022’s low inventory, in part, to the rising costs of building materials and supply chain and order fulfillment hurdles. The lack of new construction in the below-$300,000 price range caused the majority of affordably-priced homes to be resales. Starting in September, our market shifted. Interest rates ticked up quickly, and buyers proceeded with caution, waiting for a settling of rates in order to determine their revised buying power. Sellers were hesitant to list because buyer demand cooled so quickly. For our buyers, interest rates in the low three-percent range will likely not return, but we can help you find a home that meets your budget and delights you. For our sellers, we have not seen a depreciation of home values. We have instead seen home values appreciate at a more sustainable pace.
The bottom line is that we anticipate solid sales in 2023. The old adage holds true: location, location, location. Our market is stable within the Shenandoah Valley given the attributes that have always made this a desirable location to live. Our friends at Shenandoah Valley Partnership describe it best…the Valley is where trade and tranquility meet.
–The most important investment you make in life is the one you make in the people around you. At Nest Realty Shenandoah Valley, we work diligently to uplift our clients, our community, and our industry! 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.