What Can You Expect From the Real Estate Market in 2023?
The real estate market of 2023 is sure to be an interesting one. With the current economic climate and the effects of the pandemic still in play, it's important to understand what buyers and sellers can expect from the real estate market in the coming years. The critical thing to remember is that the real estate market is cyclical and has been for a long time.
Information in this article has been sourced from Buffini & Co. and the NAR.
Impact on Buyers
Buyers should expect to have more options in 2023. Buyers now have the advantage, with no more panic buying and more options. Buyers can even take advantage of the current market and buy now to refinance later. Despite the fact that rates remain higher than we've seen over the past few years, buyers should still buy if they are in the market; just ensure you have a plan (and reputable lenders) to help you refinance when rates get lower.
Median home prices are expected to continue rising significantly over the next seven years, with experts believing the median price will be nearly $400,000 in 2030.
Keep in mind the historical significance of the record-low rates we saw during 2020.
Impact on Sellers
For sellers, list and sold prices are not seeing a tremendous dip; they are still solid. However, experienced agents are a requirement for sellers during this time. Homes will likely stay on the market longer, making your Realtors®' network of connections and thoughtful marketing more important than ever. Having a seasoned expert on your side might help you avoid being one of these statistics where canceled contracts now represent 1/5 of all transactions! Pricing your home right will still make you a competitive seller in this market. It may also help you avoid having to do price reductions or make concessions once you’re under contract.
Impact on Renters
The most significant change, however, is in the rental market. Lease prices have doubled in the last five years and represent a significant contributing factor to inflation.
Homeownership continues to be the best investment for increasing a household's net worth, with U.S. home equity increasing by a total of $3.6 trillion since 2021.
It's essential to stay informed about the changing real estate market — even if you're not in the market to sell or buy. When you are, you'll want to be equipped with the most accurate information to make the best decisions for your needs.
Need help figuring out where to start? Just give us a call, and we're happy to give you a market update at any time.
