a hopeful perspective on the 2023 market
It's a new season in the real estate market, and we're ready to talk about it in a positive way. Below are reasons why you should have a hopeful perspective for this 2023 market.
1. annual home values are stable.
There is still high demand from buyers, and inventory is low —meaning that prices are not predicted to plummet anytime soon. For sellers, this means your equity is predicted to remain stable so far.
2. the market is normalizing.
Just because we aren't seeing a boom like in 2020, that doesn't mean the market is crashing. Instead, things are going back to normal. Let's face it — as much as the artificially lowered interest rates made mortgages more appealing and equity high for sellers, the blown up multi-offers, waived inspection, waiting in line and extreme over-asking pressure was not a healthy way even for those happy sellers to buy their next home.
3. the average market time is still speedy.
Market time has decreased by 14% comparing December of 2022 to 2021. Homes are continuing to sell quickly, which is an indication that the market is doing well.
4. rent continues to increase.
High rental prices are causing people to question if they should continue renting, or to start building their own equity. It looks like many renters will want to begin their home search in order to stop paying their landlord, and start building their own wealth. This is a great motivator for first time buyers, and also good news for investors who are searching in this market.
5. a market crash is unlikely.
Most real estate experts agree that a crash is unlikely, citing a low supply of homes, which keeps home buying competitive and therefore prices stable. And since homeowners have gained a significant amount of equity growth during the last couple of years, it's unlikely that foreclosures will be a big threat either.
Contact us for a free market analysis.Posted by arhome realty on
Great newsletter article. Short and to the point. I am thinking of using it for my personal newsletter.Posted by Peter Warzecha on Wednesday, February 1st, 2023 at 4:13pm
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