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A Recap of the 2023 Market

A Recap of the 2023 Market
Photo by Acampora Interiors

The previous year saw numerous changes in real estate trends, impacting market dynamics significantly. Whether you are thinking of buying or selling in 2024, it’s essential to be aware of the ongoing industry shifts, which may help you better understand how they may continue to shape the real estate landscape going forward.

Buyers and sellers sought out the expertise of agents
Photo by Acampora Interiors

The complexities of the current real estate market have driven both buyers and sellers to seek the guidance of an experienced agent. According to the 2023 Profile of Home Buyers and Sellers from the National Association of Realtor®, 89% each enlisted the expertise of an agent, highlighting the value placed on their support throughout the transaction process. Agents not only assist in strategic pricing for sellers but also aid buyers in finding the right home, negotiating deals, and connecting them with trusted professionals. This is especially useful in the face of current market challenges such as higher interest rates and low inventory.

Higher-income buyers drove the market
Higher-income buyers drove the market

In 2023, the market experienced rising home prices and mortgage rates, resulting in an uptick in higher-income buyers. The median household income rose 22 percent year over year, from $88,000 to $107,000, marking the largest recorded surge. Having a higher income enables these buyers to save for more substantial down payments, providing them a competitive advantage in the market.

New homebuyers grew in numbers
New homebuyers grew in numbers

With a median age of thirty-five, first-timers grabbed 32% of the market and their presence is expected to grow further in the coming year. Despite challenges in saving for down payments, these new buyers leveraged financial assets and loans to overcome obstacles, contributing to the growth in their numbers.

Sellers maintained a strong position in the market
Photo by Acampora Interiors

Even amid higher interest rates and housing prices, sellers continued to hold an advantage due to the inventory shortage. Reports indicate that most homes sold for the full asking price, 33% sold above the asking price, while over 75 percent of sellers didn’t need to give buyer incentives. The presence of affluent buyers, who were capable of affording higher-priced homes and offering substantial down payments, further solidified sellers’ control.

The number of single buyers rose
Photo by Acampora Interiors

A shift in household dynamics sparked a surge in the single-buyer market. While 59% of buyers consisted of married couples (the lowest number since 2010), single buyers accounted for 29% of the homebuying market. Additionally, reports indicate that most buyers did not have children under the age of eighteen living in their households.

Multigenerational living remained a popular option
Photo by Acampora Interiors

According to the Pew Research Center, the number of Americans living in multigenerational households—defined as two or more adult generations under one roof—has quadrupled since 1971, reaching 59.7 million. In fact, thirty percent of households have an older parent living with their adult children to receive necessary support and care or adult children (under forty years old) residing with their parents due to later marriage, extended schooling, or financial constraints preventing independent living. This trend has spurred an increased demand for larger homes capable of accommodating extended families.

Homeowners are staying in their homes longer
Homeowners are staying in their homes longer

On average, people who sold their homes in 2023 had lived there for ten years, and most buyers express a plan to stick with their new home for fifteen years; a significant 22 percent even expect to make it their “forever home.” Such a reluctance to move has contributed to the shortage of housing inventory. The majority of those willing to consider a move would do so for reasons such as downsizing, relocating for employment, or requiring a larger home.

New construction continued to be a favorable option
Photo by Acampora Interiors

The number of buyers who opted for a new home increased slightly in 2023. They were largely driven by the desire to avoid renovation hassles and to select preferred amenities and design features though existing homes may be more cost-effective.

Armed with the knowledge of 2023 trends and your real estate agent’s guidance, you can feel well prepared to navigate the 2024 market—whether buying or selling!

@yournewhomekey

The previous year saw numerous changes in real estate trends, impacting market dynamics significantly. Whether you are thinking of buying or selling in 2024, it’s essential to be aware of the ongoing industry shifts, which may help you better understand how they may continue to shape the real estate landscape going forward. #keyswithkimmer #yournewhomekey #memphisrealtor #mississippirealtor #tennesseerealtor #womanownedbusiness #memphisbusiness #realtorsoftiktok #womeninrealestate #homebuying #homeselling #germantowntn #realestate #colliervilletn #memphis #oldmoneyaesthetic #realestatemarket #housingmarket #marketrecap

♬ original sound – Kimmer Plunk, Memphis REALTOR®

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Kimmer Plunk

Based in Memphis and serving clients in West Tennessee and Northwest Mississippi. Serving others is a reward of its own and part of what makes me happy, and I've been doing that for 30 years through various activities including Girl Scouts, PTO, various board positions, unhoused ministry, and professional, award-winning teaching. I treat others the way that I want to be treated including being readily available, listening to your desires, answering your questions thoroughly, and walking you through the home purchase process. My ultimate goal is to see that you find the home of your dreams and experience the least amount of stress during the process.

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