January 2023 Southwest Indiana Market Update
Throughout 2022, there was a dramatic shift in the real estate market. In the first month of 2023, we are already seeing another change in the market.
At the beginning of 2022, the real estate market was hot! The housing inventory was extremely low, and multiple offer situations were causing homes to sell for substantially over the list price. Interest rates began to rise in May, and the market cooled off significantly over the last seven months of the year. Homes started to take longer to sell and sellers were averaging less than 98% of the list price. However, average home prices did continue to appreciate.
In January of this year, we have already experienced a huge increase in the number of buyers that are in the market to buy. A large number of these buyers are getting their offers accepted as well. 388 homes went under contract in January 2023 compared to 375 last January. This isn't a substantial increase over last year but is significant considering that the market was red hot last January.
In terms of inventory balance, the buyers' demand is still very high. Because mortgage interest rates are dropping, we are seeing higher demand than what we experienced in the last seven months of 2022. The real estate market is off to a great start in 2023; however, with the higher levels of properties going under contract, we're seeing an issue regarding inventory. There were just 530 homes available for sale at the end of January, which is just 1.4 months of supply.
If you are planning to sell, now is the time to do it. Interest rates have dropped. There are a lot of buyers currently looking, and we're seeing a significant number of multiple-offer situations.
As I've always said, March is the best time to list your house. Most people list April through June. By listing in March, you're beating the competition to the market while there is an influx of buyers and not enough homes for sale.
Check out DaubyRealEstate.com if you're curious about your home's value or if you're planning to move.
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