How “Bad” is it?: An Overview of National Real Estate Market Data

Last weekend’s annual Keller Williams conference in Anaheim California shed some light on the volatile national real estate market. In his State of the Housing Market address on Sunday, Gary Keller, the founder of Keller Williams Real Estate, provided a comprehensive update comparing historical trends in the real estate market and even made some predictions for 2023.

For many, 2022 felt like one of the worst years on record for real estate, yet historical data shows the market is nowhere near the lows of previous market cycles. In fact from a market value standpoint, 2022 was still one of the highest on record in sales volume. Why? Home appreciation has skyrocketed, but there is more to the story.

In the United States, the total number of home transactions dropped a significant amount, from 6.1M in 2021 to 5M in 2022. We haven’t seen a level this low since 2014.

 However, rising home appreciation is greatly impacting the national real estate economy. Nationally, the long-term trend in home appreciation is 4% annually. Yet home prices increased significantly, 12% above the 4% trend line in 2022.

This drove the total market volume to a near-record high of 2.53 trillion. And surprisingly, the total volume of the real estate market in 2023, is projected to reach $2.13 trillion even though appreciation is expected to decline by 1.0 percent.

But there are challenges ahead. In the last 12 months, mortgage rates have risen sharply as the Federal Reserve tries to control inflation and avoid a dramatic recession. This is putting a significant damper on home sales when last year’s interest rates could be found below 3% and now buyers are faced with a 6% rate. But 3% is not the norm. In fact, the historical average interest rate from 1972 through 2022 is 7.81%. The historical average interest rate from 1990 through 2022 is 5.97%.

Another challenge is affordability and inflation. Last year, affordability spiked to well above the long-term average putting homeownership out of reach for many. Used as a gauge of the economy’s health, in 2022 the Gross Domestic Product was down significantly from 2021 indicating that the attempt to cool the economy with higher rates is working, yet unemployment remains historically low.

For a deeper dive into this data, feel free to contact a KWJH agent to discuss this report, along with the local market trends as we head into 2023. 

Click here for the full deck.


New Year, New Home

The new year often brings about new goals and a renewed passion for life. Even if your resolutions have fallen off the wagon, this year, invest in your space and resolve for a better home. Through cleaning, decluttering and creating a mindful space, you can enter this season with a fresh perspective. 

Resolve to: cultivate a clean home

Life gets busy and cleaning gets away from us all. During the winter, it’s especially important to stop seasonal illness with a regular cleaning schedule. One of the easiest ways to do this is by integrating cleaning into your everyday routine! Wiping down the bathroom counter while brushing your teeth and cleaning as you cook consolidates the cleaning process and adds up to a major difference in your home. 

Resolve to: better the planet

When it comes to household products, there is rising awareness of toxic chemicals and wastefulness. Be mindful of the toxins you’re bringing into your home and consider making the change to natural cleaners, detergents and products. Invest in long-lasting supplies like reusable cloths and glassware to replace paper towels and flimsy plastic containers and you’ll be on your way to sustainable living. 

Resolve to: clear your space, clear your head

Marie Kondo rose to popularity a couple of years ago with her advice on decluttering and minimalism. Kondo suggests that you remove items that don’t “spark joy” in your life as a way of pairing down your possessions. By reducing the items in your space, you remove distractions and clutter and make a more welcoming home. If you find yourself holding on to random goods, lean into modern style and give everything a home in a designated basket, drawer or decorative box. 

Resolve to: do more with decor

Homeowners all around are finally breaking out of trends and embracing the personal style of their homes. Whether it’s texture, color, print or art that speaks to you, your home should be a reflection of who you are and how you want others to feel in your home. Woven blankets and neutral tones evoke a calm and clean environment while bright colors and bold art bring energy to visitors. This year, tune into yourself and design the home your heart desires. 

Resolve to: have fun with furniture

Spaces have just as much an impact on our behavior as we have on them so, this year, consider the personality of your space and your goals for its use. If you want guests to feel cozy in your home, integrate muted cool tones, (blue, lilac and green) to generate energy, consider bright colors. If you want to create an area for gathering, orient livingroom furniture to face inward rather than toward the television, creating an intentional conversation space. Designing a home with intention starts with a vision of what your home experience should be and mindful choices now will start a year of new enjoyment. 

Home Image: 1430 N Second Street – Contact Cindee George for more information.


2022 Star Valley Market Report

Our local team has pulled and analyzed the following data, providing insight into the past year and historical data that helps identify trends in the market. For a deeper understanding of these numbers, our local team in Star Valley is always available to discuss further.