Hi there,
Hopefully 2024 is off to a great start! Friends and clients like you regularly ask me how our market is performing. So, each February I give a recap of the prior year’s stats throughout the Capital Region and share our brokerage’s map of closed sales (see back).
2023 Market Recap: The consistently competitive residential market throughout 2023 surprised many of us that thought demand might subside as the interest rates climbed. It did not and sellers continued to win overall. While the rates have still been low historically, (see chart), they did hit buyers with nearly twice the monthly interest payments than they’d been quoted while unsuccessfully house-hunting in the prior year. Despite this increase, the Capital Region again experienced incredible demandfor properties thanks to the fact that our inventory continued to be at an all-time low: The total number of new listings were down -12% for the year.
This demand pushed average list prices for the year up another 9% overall throughout the Capital Region and average sale prices rose by 6% from 2022, though both showed a very notable peak in August/September, followed by a decline.
This led to an important market shift in 2023. The percentage of listings that sold decreased by -17.5%, leaving some active properties to languish on market which was nearly unheard of in recent years. Buyers showed they’re no longer willing to considerably overpay to secure a home that isn’t perfect. We’ve been successfully negotiating on their behalf. We do still see buyers clamoring for new, pristine, or underpriced properties, but now that it costs more to borrow money offer overages have been more stringent in most cases.
The commercial real estate market has seen marked improvement year over year too since the pandemic as many companies have encouraged a return to working in person. Similarly, there has been increased funding and investment interest in restaurants, start-ups, and retail sites. Both established businesses and fully leased properties that can demonstrate their profitability are selling steadily to eager investors.
2024 Market Forecast: Our greatest challenge for buyers will continue to be the shortage of properties being listed combined with a lower maximum price point thanks to the higher interest rates. New construction options continue to be a solid option for those with the budget and time to build. But again, there is limited inventory.
The top challenges for sellers will be recognizing that prices have ceased to rise and that a property’s condition is paramount to its success and needs to be priced accordingly to sell fast. The past notion of “just trying it” at a lofty price is now risky unless you’re comfortable waiting it out and negotiating it – or lowering the price – in short order.
There’s no reason for a would-be seller to wait for the Spring market to list. Now is the best time to capitalize on a property’s value with inventory so tight. As always, I’ll be glad to run a market analysis for you or anyone else you know that’s curious.
Your continued support of my real estate business and trusted residential and commercial referrals has been greatly appreciated. Thank you for making me your partner in all things real estate and I hope your 2024 is healthy, happy, and prosperous!
Warm regards,
Melissa Cartier
Real Estate Broker/Owner
c: 518.321.5762