A review of our first five months of data gives us a clear look at the direction the local real estate market is heading. We are currently observing a significant shift in total sales activity compared to the record-breaking pace of 2022.
The Volume Shift: A 33% Decrease
Total residential sales have seen a notable decline. In the first five months of 2023, only 183 residential properties were sold, compared to 275 during the same period last year. This drop is largely attributed to:
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Higher Interest Rates: Impacting buyer purchasing power.
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Inflationary Pressures: Leading to a more cautious consumer base.
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Fewer Active Buyers: A natural cooling following the pandemic surge.
Median Price Trends
For the first time in several cycles, we are seeing a slight softening in prices. The median sales price for the first five months of 2022 was $467,500, while the 2023 median has adjusted to $450,000.
The Inventory Paradox
Despite the drop in volume and price, the market remains surprisingly active. Because inventory levels are still historically low, competition remains high for well-priced homes. Bidding wars are still a common occurrence in Columbia County, though this may change as more properties begin to enter the market heading into the summer season.
Advice for Sellers: The Summer Window
As we approach the strongest selling season of the year, inventory is expected to climb. My advice for those thinking of selling is simple: don’t hesitate. While the market shows signs of softening, buyer demand is still strong enough to sustain a very active marketplace. Capitalizing on the current demand before more inventory arrives is a strategic move for any homeowner.
Good luck to all the buyers and sellers navigating this transition!
