Welcome to the Monthly Market Report for March 2023. In this month’s market update I wanted to take you through several things that I think are very relevant, and very important for this market. We're in a time right now where there are a lot of questions, a lot of concerns, and a lot of uncertainty. We’re going to talk about inventory and the outlook on buying.
A Word About Listing Inventory-March 2023
In the last 30 days, we've seen a range of interest rates. We get some good news on inflation and we're in the low sixes and high fives. We get negative news on inflation and it starts to send things a little bit higher. Interest rates are a concern right now but we will get through this interest rate challenge. The bigger concern and challenge that I see right now is inventory.
This graphic from REALTOR.com does a great job showing the active monthly listings in the last seven Februarys. 2023 compared to all the way back to 2017. Any time you're looking at numbers right now, you can't compare to 2021, 2022, or even probably 2023. You've got to go back to pre-pandemic times, which were the normal times in real estate. As you can see we’re sitting at 577,000 active listings nationwide in February of this year compared to over a million in the years prior to the pandemic. So significantly less inventory across the country, and we know we need more. That's the bigger issue than interest rates.
So we’re seeing that we are undersupplied in homes in this country but here is what else is going on . How much have same home prices fallen in this country from the peak? So the peak was in June of last year through December. The most recent information we have shows home prices have fallen 1% from Moody’s, 1.6 from FHA, 2.7 from CaseShiller. We don’t see a huge runaway train of 20% depreciation that some people said was going to happen mostly due to the lack of inventory but we are seeing a drop in prices that is predicted to continue through 2023. If you want to sell the market has already begun to turn.
Should I Buy a Home Right Now?
The simple answer is rent always goes up. This graphic right here shows a median asking rent since 1988. It's always gone up. Certainly in the last couple years it's gone up dramatically. When you buy a home, your mortgage payment remains fixed. This will bring stability to that part of the largest expense for everyone in their household budget.
So What Does This Mean For Buyers and Sellers?
So what does all this mean? Interest rates are still scary but owning a home is still far less expensive and much more stable than renting. Prices have begun falling but the ratio of sales price to list price still hovers close to 100%. It is more important than ever for buyers to go in strong with an offer and have all their ducks in a row. You might not get a second chance. When you work with First Coast Realty, you get a team of network individuals standing by to make sure you dreams of homeownership become a reality.
To the sellers out there, the peak of the market has passed. If you are thinking of selling do it now before prices drop more. Call First Coast Realty to receive a complimentary Broker’s Price Opinion.
Whether you are looking to buy or sell, First Coast Realty would welcome the opportunity to earn your business. Feel free to reach out to us on Facebook or Twitter and we would be happy to assist you in getting the ball rolling. Or, to talk to a qualified, experienced agent call/text today 904-494-8408 or email info@firstcoastrealtyinc.com