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Montgomery County Real Estate Trends: A Deep Dive into 2023 Stats and Predictions for 2024

By
Real Estate Agent with GenStone Realty RS273327

Hey there, Montgomery County residents! Chris Nelson here, your friendly local real estate agent, back with the latest scoop on our vibrant real estate market. If you're a newcomer, welcome aboard! For my returning viewers, always great to have you back. Today, let's delve into the fascinating world of Montgomery County's real estate trends, comparing the 2023 stats to 2022 and offering some exciting predictions for 2024.

OVERALL SALES VOLUME

First things first, let's talk numbers. In 2023, Montgomery County witnessed a total real estate sales volume of approximately $3.9 billion. Now, that might sound like a dip compared to the previous year's $4.9 billion, but hold on! It's essential to consider the number of homes sold. In 2023, we had around 8,100 homes change hands, a decrease from the 10,615 homes sold in 2022. The drop in overall sales volume is due to this decrease in the number of homes sold.

AVERAGE SALE PRICES

The good news is that despite the drop in overall sales volume, the average sale price in 2023 increased by about $29,000 or 6.25%. In 2023, the average home sale price reached around $496,000, compared to just below $467,000 in 2022. So, even though fewer homes were sold, the ones that did sell fetched higher prices, translating into increased equity for homeowners.

DAYS ON MARKET

If you're wondering about the speed of home sales, the days on market (DOM) in 2023 averaged 21 days. This is a slight increase from 2022, where homes sold in an average of 19 days. A roughly three-week timeframe to sell a home remained consistent, showing the continued desirability of Montgomery County's real estate market.

FINANCING TRENDS

Now, let's talk financing. In 2023, around 64% of all home sales utilized conventional loans, with 24% being cash transactions. FHA and VA loans accounted for less than 1%. Cash transactions still hold a significant presence, emphasizing their reliability. Comparatively, 2022 showed similar trends, indicating a stable financing landscape.

WHAT TO EXPECT IN 2024

As we gaze into the crystal ball for 2024, a few predictions come to mind. Expect an increase in inventory as we move through the year, potentially reaching two to three months of housing inventory. Lower interest rates, likely settling in the mid to low 5%, may draw more buyers into the market. With attractive rates, we anticipate more bidding wars despite the increase in inventory. Additionally, FHA and VA loans may regain popularity due to their cost-effectiveness.

CONCLUSION

If you're considering buying or selling a home in Montgomery County in 2024, buckle up for an exciting ride! Download my buyer or seller guide for valuable insights. Feel free to reach out if you have any questions or need assistance. Here's to an intriguing year ahead in Montgomery County real estate. Take care!