What’s to Come and Why You Need a Realtor in 2023
• Mortgage rates should level off
• Inventory will remain low (ish)
• Housing Prices will decrease
• Using a trusted Realtor is key
What’s the deal with mortgage rates?
Remember the year 2020? A “little” virus known as COVID-19 struck, and life was forever altered. The COVID-19 pandemic brought A LOT of change, not only in our country but across the world. Every area of life was impacted by some sort of change from COVID-19, and the real estate market was no different. According to the NY Times, the rates dropped as low as 2.65%. This resulted in some of the lowest interest rates ever recorded! Kudos to everyone who snagged a house in 2020! People all over the country bought, sold, and refinanced without thinking twice about it. So, what’s the deal with 2023? Have you seen the current mortgage rates? Yikes. How do we cope with mortgage rates rising to 6% overnight? Be patient, take a deep breath, and keep reading!
Mortgage rates will level off
This is the moment, to exhale your previous deep breath and soak in the idea of mortgage rates not increasing. Rates are predicted to level off and stay around 6% and, in some predictions, decrease. According to Mortgage Bankers Association, the 30-year fixed mortgage rate should average around 5.2% in 2023. This is good news for anyone wanting to sell and buy! We know this number is still significantly higher than in previous years. However, seeing a decrease, no matter the amount, is always encouraging! For those of you planning to buy and sell this year, it might shake out to be a better choice than imagined.
Inventory is likely to remain low
Inventory in the last few years remained low. Houses went under contract in minutes due to the high demand. However, 2023 is looking different for a few reasons. So far in Q1, inventory remains low. This is not unexpected as the demand for new houses has been so high for so long. While inventory is catching up, we’ll continue to see housing prices remain the same, at least for the beginning of the year. If you are looking to buy this might be your chance to get the house you want, without competition and bidding wars. The pro of a slightly higher interest rate is less competition coupled with more affordable homes. Once again, these are all forecasts and predictions. We aren’t seeing these situations played out just yet, but they are expected to as the year progresses.
Home prices will decrease (Finally)!
Over the past few years, it has been a seller’s market. Low-interest rates allowed sellers, in most cases, to have the upper hand. However, the tides are turning in 2023. Many experts believe that home prices will fall between 5 and 10%, according to US News. For anyone in need of buying a home, this is great news! Home prices are predicted to decline for the first time in two years. If you are in the market to buy, don’t write 2023 off as a bad year. 2023 is finally the year where the buyer is now in the driver’s seat!
Using a trusted realtor is key
Navigating any market can be tricky. Any year, any season, and any market you must have a realtor in your corner. Always pick someone that is trustworthy and knows the current climate and market that you are in. 2023 might shake out to be a great year to buy and sell. Depending on many things, like mortgage rates, inventory, and home prices, all possibilities are on the table. The process of buying and selling a home can be overwhelming, be sure to utilize an agent from start to finish!
Overall, expect the predicted changes that the 2023 real estate market might bring to be gradual. Changes that happened between 2020 and 2022, both good and bad, happened quickly, almost overnight. Over the next several months continue to watch mortgage rates, and home prices, and keep your eye on the inventory in your market. You now have a better idea of what the 2023 housing market is predicted to look like. Of course, nothing is concrete, but we hope reading this helps you feel better going into 2023! If you have any big housing decisions to make, take a deep breath and know that this year is a great year to buy the home that you have always dreamed of. Don’t forget to go ahead and find your trusted realtor, it is better to start early and be prepared, after all, you will want to be ready when the house of your dreams comes on the market!