How to Approach the Market in 2024
As others wait for us to compile our annual Lexington Market Review, I am offering you an exclusive preview to what data from 2023 has revealed about the market. I encourage you to use this information to develop an advantageous strategy to win in the real estate market this year in 2024. See what our market specialist Marcus Collins had to say.
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Why 2023 may have been the best year to buy, in like ever :)
As we go into 2024 its interesting to look back and ask how bad (or good) 2023 was.
Home Sales were lower than we’ve seen for as long as I’ve been analyzing the stats. Seller’s just didn’t want to move and Buyers were reluctant (or unable) to buy.
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Interest rates were high all year – but they are now dropping and those who bought at 7% with the option for a free refi are looking rather “smart” now.
But our listing at 39 Meriam St sold way over asking – OK maybe it did (we had an average of 106% in Lexington – thanks to Preparation, Staging and Marketing) ?but overall almost 50% of the home sales were below asking. The average Sale Price to List Price Ratio for Lexington (excluding MA Properties) was 101%. MA Properties brought the SP/LP up a whole percentage point to 102%.
That 106% - THANK YOU to our team – without them this would not have been possible.
Compare that to 2022 when only 25% were below asking. And 2022 was not considered a stellar year.
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And remember those interest rate projections. They are all trending lower – meaning buyer (and seller) confidence will start to rise in 2024.
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Prices? Well it’s a mixed picture – but trending lower/slowing price appreciation.
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Lexington was higher – but there’s a back story here. Developers build too many new construction homes in 2022 (and 2023) and were forced to discount throughout 2023. Buyers snapped these homes up at a higher rate and lower price than in 2022 (some more smart buyers). The average went up because the number of higher price new construction sold increased and the number of existing homes sales declined.
If we breakdown New Construction vs Existing Homes average price – you see a marked drop in NC sale price and a small rise in Existing Home sale price.
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So, was 2023 the best year to buy? I would argue YES …
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But as we can’t turn the clock back – onto 2024.
So – for those of you who are interested in winning the real estate market 2024.
Buyers – be ready to buy early in 2024. The “increase in buyer confidence” will be slow at first and patchy so be prepared to act quickly. Know what you want and where you want to live – so when the right home comes along you won’t hesitate or second guess yourself. Also get your financing in order – with an ARM or free refi built in to take advantage of falling interest rates.
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Sellers ?- it may be easier to sell in 2024 but the “increase in buyer confidence” will be slow at first and patchy. Preparation, Staging, and ?Marketing are key to getting the highest price. MA Properties Lexington average SP/LP ratio was 106% for everybody else it was 101%. That +5% equates to $90,000 for an average Lexington house!
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More stats to come – including the Lexington and Arlington Market Review! But, our website has been updated with the full year 2023 data.
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I hope this helps you become one of the most prepared people out there who will be active in the real estate market this year. I'm here to help you succeed.
Sincerely,
Josh