Winston-Salem Real Estate Stable in 2022, Positive for 2023

The hope is we’ve survived the chaotic up-and-down 2022 real estate market with minor distress here in the Winston-Salem area, and can look forward to a more stable and manageable 2023. Here’s a quick recap of residential real estate activity in our area for 2022 (January – December):

— Despite overall uncertainty, the average sales price for residential properties (homes, condominiums and townhomes) rose 11.2% to $295,783 at year’s end, up from $265,950 in January 2022. The highest average came in June at $322,323 as the market was at its hottest.

— Price per square foot remained stable at roughly $150 over the course of the year. The highest price came in May at $176, but fell back to $150 at the end of 2022.

— Strong buyer demand and limited inventory kept the percentage of listing price received at close to 100% during 2022, moderating slightly to 98.5% at year’s end. May/June were again the hottest months, with the percentage topping 103%.

— In January 2022, the average days a home spent on the market was 26 days; however,  that number dropped drastically to just nine days in mid-year as the market hit its most active point. By year-end, average days on market had settled at 28 days.

— The local market has slowed some, particularly during the fourth quarter of 2022. Closed sales dropped from 267 in January to 246 in December, while new listings dipped from 276 to 186.

— Continued buyer interest and reduced inventory have kept activity on a positive note in the Winston-Salem area. But higher mortgage rates have affected buyer activity and confidence, with indications buyers are waiting and watching to see where interest rates and the overall economy trend.

— Realtor.com has projected home prices in the Winston-Salem market will increase by 5% in 2023, a positive note for prospective sellers.

Conclusion: For sellers, the increase in average pricing during 2022 appears holding into 2023, presenting a potential opportunity to cash in, particularly for those looking to downsize, retire or relocate. Buyers likely will remain cautious as they watch mortgage rates and the health of the overall economy. However, indications of lower rates and improved economic activity, plus more inventory, will encourage a pool of buyers motivated to move for more space, family growth, remote work space, etc.

In overall terms, the state of the Winston-Salem area residential real estate market appears positive heading into 2023.