Real Estate Recap May 2023

May was an odd month statistically.  For the first time this year, May 2023 home sales exceeded May 2022.  In fact, May 2023 home sales exceeded May 2022 home sales by 14.8%.  Also pending home sales in May 2023 increased over May 2022 by 21.6%.

The average sales price of homes that closed in May 2023 was $424,519.  This was a 26.4% increase over the May 2022 average sales price.  This is a huge increase in the average sales price for just one year.  I am sure that our lack of lower priced homes on the market was the principal driver of this huge increase in prices.  It’s getting difficult to find a stick-built home for under $300,000.  Most of our home inventory under $300,000 is comprised of mobile homes and doublewides currently.

Many homes on the market here are still selling for the listed price, or sometimes above the listed price.  The average home sold in May for 95.8% of the original listing price.

As I commented above, our inventory of homes for sale is still thin.  We only have a 2.1 month’s supply of homes on the market in Haywood County.  (Meaning if no new homes came on the market and home sales rates remained the same, we would be out of homes for sale in 2.1 months.)  A balanced real estate market is usually considered to have close to a 6 month’s supply of homes for sale.  We are far below that number.  A balanced market has close to an equal number of buyers and sellers.  Less than a 6 month’s supply means there are more buyers than sellers, thus a seller’s market.  More than a 6 month’s supply means that are more sellers than buyers, thus a buyer’s market.  Real estate sales prices have always been determined by supply and demand.  When supply exceeds demand, prices go down.  When demand exceeds supply, prices go up.

If you have any comments, concerns or questions, please let us know.  We are here to help you negotiate the real estate market.