Spring Has SPRUNG!
1st Qtr 2023 Compared to Same Period 2022 and 2013
By Karen Briscoe
The first quarter of 2023 has closed out and the top question real estate professionals are asked these days is, “How’s the real estate market doing?” Mortgage interest rates continue to impact the market as well as disruption in the financial sector.
The predominant story is that inventory of available homes remains historically low. Demand consistently outpaces supply which benefits sellers who are planning a move in 2023. When looking back at the number of homes sold one year ago (283) and even one decade ago (197) for the same time period, the number of sales are down throughout all price points (180).
Looking into the second quarter, the best news is at this point in time there are almost three-quarters as many homes under contract (139) as closed in the first quarter. For the spring season, the supply is at 4 months which is considered a Seller’s market. The challenge for Buyers is that the majority of the homes in McLean and Great Falls are priced at over $1.5 m. With all housing types including condos and townhomes, there are only 1.5 months of supply in the below $1.5 m price point.
There are two significant demographic phenomena occurring which impact housing supply and demand. The Baby Boomer Generation which was the largest generation “ever” in the United States at about 79 million has been passed up in size by The Millennial Generation at about 91 million. The Millennials are at the peak of “adulting” years which in many cases includes household formation, marriage, having children and getting dogs. All of those life stage activities frequently lead to a home purchase. At the same time Baby Boomers are on the move as well.
According to a new study from The National Association of Realtors, Baby boomers are now the largest generation of home buyers.
The 2023 Home Buyers and Sellers Generational Trends report out today 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.
As a seller, now is the time to take advantage of continued low inventory and pent up buyer demand. It is advised to consult with an agent who has counseled clients through more than one market cycle and can draw on past experience to solidify an effective pricing and marketing strategy. HBC Group has 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.
As a buyer, 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.