2022: What a year it was! The slowdown in real estate definitely wasn’t imagined.
The average sale price is down 21% from the previous December and there were 33% fewer homes sold this month. “In fact, there were fewer home sales in 2022 than in any other year in the last decade,” says Trish Lewis, Sales Representative, GoWylde Team/ReMax.
And yet, it isn’t all doom and gloom—far from it. “If we look at where average house prices were pre-pandemic—in March 2020, the average sale price was $540,287—we have increased 20.5%. We are now at $680,187; that is very strong appreciation over just 2 and ¾ years,” says the REALTOR®.
By the time we reached the last days of December, homes in Cambridge had returned to prices last seen in early 2021. The average sale price of a detached home in December 2022 was $745,289. For attached houses it was $586,550 and for condos and apartments it was $449,333.
Inventory increased substantially, compared to what we had been seeing earlier in the year. It is still only at 2.17 months, which is normal.
As far as interest rates go, we do appear to be at the end of the extreme hikes—or at least really close to the end. The next announcement will be made on January 25th.
“When the market does start to pick up, there is going to be a lot of pent-up demand and supply will likely be relatively low, which could spark another rapid increase in prices,” she says.
So what is her advice for her clients going forward in 2023?
Says Lewis, “The current market is a great opportunity for first-time buyers; it is a nicer market to buy in. I recommend a 1- or 2-year fixed rate or variable rate because interest rates will come down. It is also great for investors: rents are high, prices are down and if it can cash flow with the current interest rate, it will only improve as the interest rates go down.”
For more information, or to contact real estate agents Mary Wylde and Trish Lewis, visit the GoWylde Team or call 519-826-7109.