Market Update January 2024
While much of what you hear may be on a national level, the information provided below is focused specifically on the Williamsburg area real estate market. Real estate is local, even down to the neighborhood level. So, no matter what you read or hear, please feel free to call me for help and advice on the Williamsburg real estate market. That’s what I’ve done for the past 22 years and happy to help where I can. Call/text/email: (757) 254-6678 or tevans@cbwilliamsburg.com.
An overview of the Williamsburg real estate market in 2023
- Dramatic drop in homes, townhomes, and condos for sale. We need approximately 500 additional listings in order to have a balance market.
- Demand is still fairly strong with many price ranges receiving multiple offers and others approaching more of a balanced market.
- Home prices are still increasing, but not at the levels we experienced in 2021/2022.
- Average selling price in 2023 was $481,000, up 5% from 2022.
- Median selling price in 2023 was $440,000 up 5% from 2022.
- The chart below shows units sold and interest rates by year. While I am not ready to say there is a direct correlation between 30-year fixed rate mortgages, it does show that as rates dropped more homes were sold. As of December 2023, we are down 38% in the number of homes sold from the peak in 2021. During the same time period, interest rates more than doubled.
If you are considering selling or buying a home in 2024, here a a few things to consider:
- Mortgage rates have dropped from the last quarter of 2023 to around 6.5% (fixed rate). If this trend continues, we should see additional buyers enter the market.
- Selling? While inventory is low, buyers are being selective. I recommend that home repairs and maintenance are complete prior to listing your home for sale and that you consider having a home inspection prior to listing your home. This gives you and the buyer additional comfort with the condition of your home. Also, be certain to declutter and thoroughly clean your home. The more spacious and well-maintained it appears, the more appealing it will be to potential buyers.
- Buying? Do not waive your home inspection. You can state that you won’t ask for repairs in your contract, but don’t give up the right to cancel the offer if something arises during the inspection process that causes concern. And, if you are competing with other buyers, you don’t necessarily have to go higher than the list price. The winning offer in a competitive situation is not necessarily the one with the highest price. Understanding what motivates the seller is key.
Interest Rates and Units Sold in Williamsburg VA
