The end of 2022 provides a great chance to reflect on the past year. Looking back can be especially useful if we use what we see knowledge to help shape our expectations for the coming year.
Jodie Cordell, a licensed real estate agent in Florida, recently wrote an article for The Close titled “Real estate stats your homebuyers will want to know in 2023.” Many of these statistics make me think back on this year and my previous years of experience in real estate.
I’ll be using Jodie’s stats as a jumping off point, as most of this information is relatable to our local market, as well.
n In today’s market, homebuyers searched an average of 10 weeks for a home. That’s an increase from eight weeks during 2020 and 2021, an indication that the market is cooling slightly, giving homebuyers a better shot at getting into a home they love.
This increased time frame for homebuyers in the Chattanooga area through the early and middle parts of the year was much shorter. However, in the last few months, we’ve seen this timeframe increase due to rising interest rates and inventory shortages.
Recently, the overall period from first introductions to the day an offer is being accepted is more in line with the 2020 and 2021 numbers in the greater Chattanooga market.
n In 2022, homebuyers typically purchased their homes for 100% of the asking price, with 28% purchasing for more than the asking price.
This statistic is relatable in the Chattanooga area, as well, with continued migration trends from homebuyers from other states and business growth. Inventory shortages throughout 2022 caused a competitive market in Chattanooga with strong homes sales at or above list price.
n April is the most competitive month of the year for homebuyers. According to Realtor.com, listings surge 29% in April and homes typically sell for more.
In the Chattanooga market, we see a few periods during the year of surging homes coming onto the market, with early spring and late summer always competing for the hottest market for sellers to be ready to list their home with a Realtor.
n The median home price in 2022 is $357,300. That’s a $46,700 increase from January 2021 to January 2022.
We’ve seen a similar increase in the median home price in the greater Chattanooga area as well. Greater Chattanooga Realtors will release its 2022 Market Report in January and I’m interested in seeing how these numbers compare, so stay tuned.
n Typical recent home purchases were 1,900 square feet with three bedrooms and two bathrooms, built in 1993.
I find this statistic very interesting and have started the process of digging into our local data to compare what our average size and age of home was in 2022.
n The median listing price grew by 13% over last year. But signs show home price growth is moderating.
This information is not surprising. We’ve seen the median price increase in the greater Chattanooga area as well. This increase is predcted to continue but with a softening or leveling compared to the spike we experienced in 2022.
n Twenty-nine percent of first-time homebuyers cite saving for a down payment as the most challenging part of the home buying process.
This is a challenge we’ll continue to see increase with rising inflation and the cost-of-living increases.
I know from real life conversations that young families are struggling with saving for their down payment. Many have had to postpone being able to purchase their first home.
Thankfully, there are some great mortgage lenders offering programs to assist many of these buyers, and I hope 2023 brings even more assistance.
This year is coming to a close but many of the topics and issues we’ve discussed are sure to remain in 2023. That’s why utilizing the expertise of a Realtor in your real estate transactions is crucial.
The market might shift but the ease of mind when working with a Realtor remains the same, year in and year out. That’s Who We R.
Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga Realtors serves Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. The association is one of approximately 1,100 local associations and boards of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a Multiple Listing Service that is one of approximately 600 MLSs in the country and services more than 3,000 MLS users. Local association membership consists of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines, including appraisal, commercial, industrial, land, multifamily, property management and residential. Affiliate members who represent related industries work alongside these Realtors, including mortgage lenders, home inspectors, title and closing services, pest inspection and control services and insurance providers.