2022 Real Estate got you down? Hear from Richard Houle, Realtor with The Peter Izzi Team on why things are looking up.
What a rollercoaster of a ride 2022 was! With that chapter closed, we will look at some thoughts and predictions for what we expect to see in the coming year.
Buyers, phew! Can we take a moment to breathe and allow ourselves to heal from these battle wounds? The redesigned rollercoaster of 2023 will still be speeding ahead. You can loosen the seat belt just a bit. We all know the rates have jumped up, if not doubled, in the last year, which has caused a ripple effect, now read that again. I said ripple effect, not a tsunami, haha. We can not examine how rates have changed your buying power, but remember that it has changed almost all buyers’ buying power. Now that we have the negative out of the way, let’s dive into how we believe 2023 WILL BE BETTER FOR YOU!
Even though rates were up in the 7’s, market activity was still happening. Buyers were still buying homes; they may have been a little pickier. But, seeing them dropping below 7% is a welcoming change, which has allowed a swoop of fresh air to come through. Keep in mind that interest rates will always fluctuate up and down, and no certain percentage is here to stay. I will always go back to my core logic regarding advice on whether a buyer should or shouldn’t purchase a home. Focus on the affordability factor. It can only improve from here if you can afford the house now!
On the positive side of the interest rates, we will continue to see less overbidding and a little more time to digest the purchase. Now, this does not mean that homes will not have multiple offers. Homes that are correctly priced will still draw activity. There also may be another opportunity for you as a buyer, especially if you have your ducks in a row. Fallout is something that we are starting to see again. Fallout can be for numerous reasons, but one of the most common reasons is buyers, and their agents need to check in on their pre-approval and payments ahead of time; this is super important!How can you offer to buy a house if you don’t know what the cost will be? One of the little tips I use for my buyers is a straightforward question. How much are you paying for rent, or what is your current mortgage? How much will the new payment be, and are you comfortable with the difference? If we stick to those little tricks, I assure you we will be able to handle any surprises in that department. While rates are up, it isn’t a sticker shock to most buyers nowadays; they have started to digest the idea that the market isn’t going to drop.
From the famous words of Taylor Swift, “Shake it off” because the days of “my neighbor got 2%” are gone.
Those rates, although excellent, may never come back. So, in a nutshell, what does all of this mean? If you do your homework as a buyer, and link up with a professional Realtor (us, of course), then you will have no problem being able to navigate this ever-changing real estate market.
Sellers, wow, just wow! Those are the only words that come to mind when I look back at the seller’s market of 2022. What a blessing it was for you. Long lines, multiple offers, waiving contingencies, and offering way over asking. Are those things of the past? Well, let’s not get too carried away, haha. While 2022 and earlier were some of the best times sellers have ever seen, don’t be too concerned that you missed the train. This train has a few extra spaces available. Meat and potatoes, isn’t that why you are here? Let’s get the pan warm, get comfortable and dive into it. Flat out, buyers are ready and more prepared now than ever.
Tired of losing, frustrated with interest rates, and lack of inventory are all driving factors in this ever-changing SELLER’s market. You read that right; it is STILL a seller’s market. With still under two months of inventory, we are still seeing the median home prices continue to increase. I know, wild, right? Buyers have digested the rates, do their homework, understand what they are willing to pay, and are ready to strike. Those are the buyers we want walking into your home. The key is how do we get them? How do we obtain these high home prices still?
Contact us today for a free home estimate, or a free buyers consultation!