REAL ESTATE FORECAST FOR 2023
There has been a lot of uncertainty in real estate and the economy in 2022. Mortgage rates more than doubled from under 3% to over 6%. Many buyers who qualified at 3% no longer qualify at 6.25%. Employment locally remained good. The stock market went down substantially affecting consumer confidence and the ability to borrow from retirement accounts for home purchases. By June homes sales slowed down, multiple offers became the exception and home values started to slip Inflation hit 10% and the Fed kept raising rates.
Ray and Jon’s Home Values forecast for 2023:
Optimistic forecast is prices stay flat
Reasonable forecast prices decline 5%
Pessimistic forecast prices decline 10%
Expect the slow down to continue. Downturns in real estate don’t turn like the stock market. They usually run a minimum of 2 years. The hot market that ended last year ran for 10 years. Homes that are priced reasonably and prepared for sale will still sell in 45 days or less. Homes that are over priced will just sit. Most homes will sell with one offer at a time. There are still qualified buyers in the market who want to purchase in 2023. Buyers will be more selective and able to negotiate more.
If you are ready to sell there is no reason to wait. Choosing the right full time Realtors who know the market and have been successful selling homes in slower markets will become very important.
Don’t list with Ray & Jon unless you intend to move!