The Dayton area was still feeling the effects of higher interest rates in January. In total, just 716 homes were sold (this includes single-family, attached homes, and condos). That is the lowest number of unit sales that we have seen since before 2017. It was a 31.5% drop vs January sales in 2022. We started seeing double-digit decreases in sales numbers starting in September of last year and those drops continued through the end of 2022.
New listings were also down for the month, but the lower sales numbers meant that our total number of listings increased above our January 2022 inventory levels. New listings began dropping significantly in July of 2022 as interest rates continued their climb. October saw the biggest drop in the number of listings with a shortfall of almost 18% fewer homes than in 2021. Even though we had 6.6% fewer listings for the month, we are continuing to see an improvement in the number of new listings since October.
We are also seeing the number of days continue to rise. It took an average of 74 days to sell a house this January vs. 69 days in 2022. As a point of reference, it took 75 days on average to sell a home in January 2021. While the average sale price continued to increase over last year, the rate of increase is slowing. In January 2022, the average sale price increased 10% vs 2021 vs the current increase of 7.1%,
It looks like early 2023 will still be a seller’s market, but it should not be like the frenzy of early 2022. The market is shifting and the needle is moving to give buyers more power. With fewer of them in the market and total inventory levels slightly above last year, we should see less competition. We are also seeing a lot more price reductions as homes sit on the market longer than they did a year ago. The predicted moderation of interest rates between 5.5-6.5% should also be good news for buyers that may have paused their search in the 3rd and 4th quarters due to rising interest rates and economic uncertainty.
While the market is still not balanced, it appears to be heading in a more healthy direction in 2023. It should be a good market for sellers who may still get higher prices than a year ago, and we should see buyers with more negotiating power and less need for offers significantly over the listing price.
If you are considering a move in 2023, please give us a call. We are happy to meet with you and put together a plan to meet your needs.
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