Recapping 2022’s market and the three main factors that affect 2023.
2022 was a very crazy year in real estate. As we work to get ready for 2023, I’m going to recap last year and explain how it should influence our actions for the beginning of the year. These facts will be about all types of homes in San Mateo County, and everyone can stand to benefit from learning them.
First of all, 2022 had the highest median sales price in history. That value fluctuated throughout the ever-changing year, as it started at $1.5 million in January, peaked at $1,775,000 in April, and went down to $1,413,000 in December. Therefore, prices at the end of the year were about 20% below their peak.
Another value that is worth mentioning is days on the market. The year started at about seven days, then that doubled in the fall and doubled again during the holiday season. Now we are at 25 to 30 days on the market, which is extremely long for our area but about normal for the rest of the country.
The last factor we’re going to look at today is inventory. A balanced market would be about six months of inventory, but in our market, we often only have weeks. Throughout 2022, inventory was generally around one or two months, which is tight. This has kept prices a little more balanced—in other words, homes are selling for close to their asking prices.
However, I think a lot of this is about to change. Many sellers have been holding out for the past few months to put their houses on the market at the beginning of the year and wait for a reset. This is very true with our clients—we have five new listings launching this week alone. I believe this is going to be a popular mindset, and that a lot of new homes will be coming on the market in the next month or two.
There will be some upcoming opportunities for both buyers and sellers. If you’re a seller, I encourage you to get your home on the market sooner rather than later. Also, price it aggressively and ahead of the market. You want your home to be the one that grabs the attention of the buyers.
If you’re a buyer, I’d say sit on the sidelines for a week or two. Start looking at houses and understand what’s happening in the market, but wait to buy a home until there’s a little bit more inventory. Then there will be much more flexibility in pricing.
Know that I am always here to help you navigate the market and answer any questions you may have. Call or email me anytime—I’d love to help you reach your goals!
If you're looking for a reliable real estate advisor in California, consider contacting Jeff Lang. He offers a free consultation to discuss your real estate goals and help you achieve them using his vast experience in the field.
