Buying and selling a home this year and what to expect
I have been closely monitoring the housing market predictions for 2023 and wanted to share my insights with both sellers and buyers what we think is in store for housing this year.
For sellers, it's important to know that we predict the 2023 market will be slower than previous years, but we're not expecting a crash. While the number of people requesting home tours has exceeded our expectations so far in February, we expect significantly fewer homes to sell in the first half of the year compared to 2021 and 2022. However, we do predict a slow recovery with more home sales in the second half as mortgage rates tick down and more buyers enter the market. To attract offers, it's crucial to focus on preparing your home and pricing it well. I'll help you create a strategy for success to get your home sold as quickly as possible. Additionally, we expect home prices to decline moderately—around 4% nationally compared to one year ago—and start to recover by the end of the year.
For buyers, it's good to know that we expect mortgage rates to decrease slightly this year, settling around 5.8%, bringing some relief for your monthly budget. We can connect you with our mortgage advisor to talk about your current affordability picture and learn more about your personal financing options this year. Additionally, prices will likely decrease by about 4% nationally compared to one year ago, but so will the number of new homes hitting the market. If you find a home you love, it's a good idea to put in an offer rather than waiting to see what else is out there. I can help you negotiate the right terms or ask for concessions that will help your bottom line. We also expect investors and other corporate buyers to purchase fewer homes this year, bottoming out in the spring before eventually rebounding. If you want to avoid competing with this kind of buyer, it may be a good idea to start your search earlier in the year when they are less active.
Overall, the housing market predictions for 2023 show that it will be a slower year compared to previous years but not a crash. Both sellers and buyers should be aware of these predictions and work with a real estate agent to create a strategy for success. If you'd like to hear more about these predictions and what they mean for your home buying or selling journey, please reach out! I'm happy to give you a call, schedule a video chat, or meet up with you in person.
