by Karen Briscoe
July 12, 2023
Summer Season is HERE!
1st Half 2023 Compared to Same Period 2022 and 2013
By Karen Briscoe
The first half of 2023 has closed out and the top question on people’s minds as we enter the summer months remains, “How’s the real estate market doing?” A number of broader factors continue to impact the market as well as disrupt the financial sector.
The number of available homes remains historically low. This “missing supply” along with strong demand continues to benefit sellers who are considering a move in 2023. The number of homes sold in the first half of 2023 in the McLean and Great Falls market was 489. For the same time period in 2022 that number was 664 and one decade ago in 2013 it was 534.
Looking into the data, all the price points lagged the previous year, although are up in every category except under $1 m from a decade ago. These statistics validate that prices have appreciated considerably over the last decade. A recent poll from Gallup shows that real estate was voted the best long-term investment for the 11th consecutive year, consistently beating other investment types like gold, stocks, and bonds.
The strong demographic trends are having the most impact on housing supply and demand. Millennials, which is the largest generation ever at about 91 million, are entering their peak “adulting” years. In many cases, this stage of life involves household formation, which includes marriage, having children and getting dogs. These major life events frequently lead to a home purchase.
At the same time Baby Boomers are on the move as well. The Baby Boomer Generation previously held the rank as the largest generation “ever” in the United States at about 79 million. According to a new study from The National Association of Realtors, Baby boomers are now the largest generation of home buyers. Many boomers are taking advantage of “arbitrage” scenarios where they sell high in one market and then buy at a lower price point in another market.
The 2023 Home Buyers and Sellers Generational Trends report found that baby boomers rose to 39% of the homebuyer pool in 2022, up from 29% in 2021. Millennials, the top group of buyers since 2014, saw their share drop from 43% in 2021 to 28% last year. In addition to home buying, baby boomers represented the largest pool of home sellers, jumping from 42% in 2021 to 52% in 2022.
Thinking of making a move? As a Seller, now is the time to take advantage of continued low inventory and pent up buyer demand if you are in a position to do so. If so, consult with an experienced agent who has navigated clients through more than one market cycle to strategize on effective marketing and pricing. The HBC Group at Keller Williams offers clients access to an exclusive in-house Home Stylist that assists clients in making recommendations that will maximize buyer interest. Homes priced correctly for the market and in good showing condition continue to command top dollar.
Thinking of buying? If so, it is in your best interest to partner with a seasoned real estate agent and experienced local lender to strategize on financing options and contract negotiations so that you can position yourself successfully.
Karen Briscoe, Lizzy Conroy, and Jenny McClintock with HBC Group at Keller Williams are active and experienced Realtors® in the Northern Virginia marketplace. Their accomplished team represents sellers, buyers, investors, and builders in all price ranges and is available to assist with your real estate needs! What is your Next Move? Get in touch with us today!
www.HBCGroupKW.com, 703-734-0192, Homes@HBCGroupKW.com.