What is going to happen with the Real Estate Market in 2023?
Click the video, or read below, for my three predictions for 2023.
Prediction #1
The market is either going to go down, go up, or stay the same.
I don’t know what prices are going to do. No one really knows.
No one has a crystal ball and the market can change rather quickly as we saw in the spring of 2022. Most predictions in the spring were that there was no end in sight to the rising home prices and we were in a market that could only be described as an auction. Prices didn’t make a lot of sense. If you really wanted a house and would pay anything to get it, that was about your only strategy. Then, that market ended abruptly.
But, what I do know is that historically, prices do appreciate in the long run. And, if you are looking to buy and hold real estate, it’ll never cost less on average than it does today.
Ask yourself:
How much real estate in 2012 prices would you like to own today?
OR, how much real estate are you going to want to own in 2033 at today’s prices?
Think about how much you stand to lose by waiting and waiting for a market that may never be cheaper in the long run than it is today.. If you can find a home you like, and the payments make sense, it’s probably a good idea to buy.
Don’t confuse what you hope will happen with what is most likely to happen. The bottom will hit, if it hasn’t already, and we won’t know it until it has already passed us by and prices are on the way up again.
Prediction #2
People are going to buy and sell houses
No matter what the market conditions are, homes are bought and sold everyday.
Price and interest rates aren’t the only determining factors
Peoples’ needs and situations change all the time.
Whether it is a growing family, a new job in a new town, or empty nesters downsizing there are many non-financial reasons to buy real estate. Sometimes, people just want a change.
Prediction #3
People need a place to live and they are either going to rent or buy.
And whatever they chose to do is ok. Renting has its advantages, like not being responsible for maintenance and repairs in most cases, or having the ability to serve proper notice and move without having to worry about selling first, giving a renter flexibility.
Other people will do whatever they can to buy a home because they want to build equity, have pride of ownership and have control over where they live without the threat of a landlord choosing to not renew their lease and asking them to leave.
Bonus Prediction
Many buyers will adjust to the new interest rate climate and still buy houses, especially some first time buyers.
Why?
Because at the end of the day, they want to be homeowners and are buying a payment. What they want to know is how much their payment is going to be, how much they can afford to pay and will find a property that fits within that budget.