Q3 2022, brought more clarity as to the direction our market will head as we finish out 2022 and head into 2023. Q3 brought an overall move back to a more traditional real estate market with less frenzied activity and a more measured approach from buyers and sellers. While this means a shift away from a dominant seller’s market, it also allows for opportunities for both buyers and sellers to transact in a more collaborative way.
The trend we were monitoring in the second quarter of 2022 carried into Q3. There was an overall decrease in sales volume, however, it was not as significant as we saw in Q2. A similar trend was seen across the board, with a fewer number of new listings, and lower average listing and selling prices. There were increases in median selling prices and average days on market. Even with the overall trends providing more market clarity, one interesting data point was that the average final selling price was 97% of the last listed price, slightly below Q3 2021, which was 100%. While there was a slight decrease in this percentage it is still a sign of a strong market.
Interest rates, having moved from a low 3% to almost 7% since the start of Q2, have had a more significant impact on the overall market than almost any other factor outside of the economy as a whole. This continues to be a factor that all of us monitor. While these rates seem much higher than many buyers have ever experienced, they are still historically low. We are finding that buyers who are well qualified are still willing to move forward as the market is presenting them with opportunities they haven’t seen in 2 to 3 years.
Across the region, excluding Waterbury, there was a decrease in inventory. In Stowe, there was a 14% decline in new listings, and in Lamoille North, there was a 22% decrease in new listings compared to last year. Waterbury saw an increase in inventory, by 23%.
We are transitioning to a more balanced market, returning to less of a fevered environment, one where both buyers and sellers can work together to reach the common goal of a successful transaction. As we make this transition it is important to have the right real estate professional on your team to assist in navigating these collaborations to a successful outcome.
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