BAY COUNTY, Fla. (WJHG/WECP) – After last year’s roller-coaster housing market, with prices climbing quickly and high, many are wondering what’s in store for 2023. Will what went up come down?
Interest rates sat around a steep 7%.
“Also we had a recession hit in, inflation. Inflation affected our market,” Debbie Ashbrook, CEO of the Central Panhandle Association of Realtors, said.
According to the Central Panhandle Association of Realtors (CPAR), inventory climbed but couldn’t match the demand or affordability.
“As we saw in Bay County in general, the average sell prices or median sell prices are up about 17%. When we look at the beach, it’s up more like 30%,” Ashbrook said.
The median sale price in Bay County is now around $351,000. For Panama City Beach, it’s just under $440,000.
“But now we’re seeing the market become balanced so people don’t need to be afraid of the real estate market crashing. It’s just going to become normal. Again, like it was really pre-Hurricane Michael,” Ashbrook said.
Ashbrook said they anticipate interest rates to settle around 5.7% this year.
“I think our inventory is going up. We currently have about a four-month supply and a six-month supply as a balanced market. So I think in 2023, we’re going to see a normal real estate market where inventory is going to be there for buyers. Sellers that want to sell are going to get with our asking for their houses, as long as they don’t expect to get exorbitant prices like they did last year,” Ashbrook said.
What the market still lacks is affordable housing.
“Our median sale price is $300,000. and really for first-time homebuyer affordable housing, it’s you know, more like $250,000 and under $250,000 so those properties are hard to build,” Ashbrook said.
Bay County Chamber of Commerce 2023 Chairman Kyle Shoots said it draws an important question.