With interest rates projected to be between six and seven percent, only 4.6 to 4.7 million homes sold nationwide, and median home prices hovering around $385,500, we are in for a frosty housing market in 2023.
Gone are the days of sellers being able to put their homes on the market “as is” for $50,000+ over value and receive multiple offers on the same day. If sellers want to sell their homes in 2023, they will need to get back into the mentality of getting their homes ready to sell. Getting a home sell-ready includes fixing, cleaning, de-cluttering, staging, and landscaping.
This shift, however, does not necessarily mean 2023 will be a buyer’s market. Danielle Hale, a chief economist for Realtor.com, had this to say, “With mortgage rates continuing to climb as the Fed navigates the economy to a soft-ish landing, a moderation in home price growth will not be enough for the housing market to be a buyer’s bonanza. Instead, home shoppers will enjoy advantages such as a growing number of homes for sale. Still, costs will remain high, challenging affordability at a time when overall budgets continue to be squeezed.
Does this mean that if you are looking to sell you should press pause? Not at all. There are still way more buyers than homes for them to purchase and the best homes still sell quickly and for top dollar. If you are wanting or needing to buy, there is no better time than now, as there is less competition for top-tier homes. You can buy the house but “rent” the financing. If the rates go down in a year or two, then refinance at that point and get the lower rate. In the long run, waiting to purchase real estate is usually the wrong move as prices will continue to trend up.