January 2023 Newsletter Part 2

Housing Market Data

We ended the year with a rocky December, which isn’t uncommon for the winter months, but this was an especially difficult 4th quarter for the housing market. The drop in year over year sales volume for December was 30% in terms of deal flow, but 38% in terms of dollar volume. The culprit was simply interest rates, as cash deals increased by 11% while financed deals fell by 41% year over year. Financed deals went from 80% in 2021 to 68% in 2022.

Year over year we see a 26% drop in deal flow and 17% in dollar volume. Consistent with what we have seen the last few months, the beating has been the < $500,000 price range.

As we reported earlier this month, price per square foot appears to have crested and is just now starting to slip in the lower ranges.

Here's Some Double Speak

Alan Jope, CEO of consumer products behemoth Unilever, holding forth to CNBC on Tuesday morning from Davos, Switzerland: “We know for sure there’s more inflationary pressure coming through in our input costs. We might be, at the moment, around peak inflation, but probably not peak prices.”

What else happened in December other than single family?

  • Mobile homes (with land) sold for
  • $1,485,500
  • 4 Condos sold for $1,350,000
  • 3 Time Shares for $12,950
  • 8 Commercial (non Ag) sales for $8,174,618
  • 2 large land sales for $6,300,000
  • 30 sales for other land, lots, and Ag not in
    service for $7,341,829
  • 19 Personal Representative Deeds filed covering 23 parcels
  • 1 Multi Family for $650,000

Need Real Estate Services?

Contact Pioneer Title Company today for professional Real Estate Title or Escrow services.