Some economists are still predicting doom and gloom for the US economy and real estate markets, while others are predicting boom and bloom, or at least the path back to there. The sense I get is that the 2023 market will be, well, somewhere in between, but definitely on the up side.
Sales in 2022 were almost 15% down from 2021, but 2021 was a record year. Many buyers hibernated due to fear – inflation, higher home prices, war in Ukraine, China China China, Russia Russia Russia, election year, and then there was the doubling of mortgage interest rates. But those buyers’ needs did not disappear – new job, just got married, new baby, work from home, home schooling, etc – and those buyers are starting to come out of the woodwork in 2023.
Inventory in most areas and price ranges is low because many of those hibernating buyers were also hibernating sellers, so fewer homes have been put on the market for sale. Thus this is a great time to get a home on the market, before everyone else does and while the buyer traffic is picking up. Homes are not selling within days above list price anymore, but priced right, most homes are selling within 30-60 days. Keep in mind that a typical timeframe to sell a home in a balanced market is 3-6 months.
Interest rates have capped in the low 6s and all signs are pointing to rates in the 5-5.25% range by mid-summer. I have seen both conforming and jumbo loans closed at 5.75% in recent transactions. Compared to the 50 year average of 8.1%, that is very attractive.
Call or email me if you would like an updated price analysis on your home.