February 2023 Market Update
What's in store for buyers and sellers in 2023?
It feels like over the last few months that buyers and sellers have been feeling each other out like two boxers in the ring throwing jabs at the air. Sellers are still looking for top dollar for their properties while buyers are recouping from inflation, interest rate increases, and insurance issues. However, there are some changes buyers can celebrate.
While this new normal may take some time for both parties to adjust, an article from Realtor.com suggests that this is a promising sign for buyers to rebound from the wild landscape of the past few years.
“In addition to this deluge of homes for sale at more reasonable prices, mortgage rates are also down from their 20-year high, which broke 7% in November. For the week ending Jan. 26, Freddie Mac found that rates for a 30-year fixed-rate loan averaged a mere 6.13%. The fact that mortgage rates are down from their November highs means that today’s homebuyers aren’t paying quite as much as they did before,”
- Danielle Hale, chief economist of Realtor.com.
Days on Market is increasing according to the GSREIN. Before, buyers might have to take off work or submit site-unseen offers just for a chance at winning a bid on a home. Now, we are seeing buyers having time to shop.
More Homes for Sale could also be contributing to buyers not having to get into bidding wars or settle in order to get into a home. This past January, the New Orleans Metro Area saw an 88.2% increase in inventory.
Prices Remain Higher than Prepandemic Levels
The Average Price Per Square Foot and Average Sales Price has fallen some, yet we see they are still much higher than pre-pandemic levels. If sellers have enough equity in their properties, it is still a very good time to sell and take in a profitable return on investment.
More and more qualified buyers are entering the market this year as we get into the spring and summer months.
Chuck Stall is a licensed REALTOR® WITH GNO REALTY
Broker: David Claus - Licensed in Louisiana
3225 Danny Park, Suite 202
Metairie, LA 70002 (504) 338-1144
www.GNORealty.com