Even though Allegiance Title works with some of the best real estate professionals and customers in the business, we know this year hasn’t been easy. After all, it’s challenging to have a positive attitude toward the housing market sometimes, especially after what we’ve all experienced this year. With the interest rates rising and inflation adding stress, it’s becoming increasingly difficult to buy or sell a home right now. (And how often have we been able to say both are challenging endeavors simultaneously?)
Fortunately, these volatile conditions won’t last forever. There are some very promising possibilities for 2023 that both buyers and sellers should be excited about. We don’t want to get too deep into the prediction game, but here are four things buyers, sellers and our fellow real estate professionals should keep in mind.
Listing prices are falling.
You can already find some areas where listing prices have decreased significantly from the highs seen during the pandemic. This trend will likely continue into 2023 as buyers are no longer willing to pay astronomical prices, along with the increasing interest rates.
Interest rates will come down – eventually.
Speaking of rising interest rates, these should start to come down and stabilize in 2023.While it will be a slow decline over time, any drop will be a reason for celebration and a positive attitude from buyers and sellers alike. By spring of 2023, struggling homebuyers will have reason to hope.
The market will balance out.
During the past few years, sellers have had the upper hand in the real estate market. Homes have been selling at higher-than-average prices, and this is still the case. While prices are starting to drop slightly with the interest rates rising, another benefit to buyers is that overall housing inventory is up by 28% over the last year. This means more options for buyers and less bidding wars, bringing some normalcy back into the market.
No one knows the future – no matter what they say. All of the predictions for the year to come are just that, predictions. While there is no shortage of doom and gloom forecasts every week about “the future,” just remember that they are nothing more than educated guesses. Everything can take a turn for the better faster than expected. Keeping a positive attitude will benefit all of us in the long run.
The real estate market has been like a terrifying roller coaster ride lately, but it will hopefully be more balanced sooner than later. Whether you are looking to buy, sell or both in 2023, stay positive and find the right team of professionals to guide your journey to a new home. The future is unwritten, but one thing is for sure, things will change. That’s why you need a closing partner like Allegiance Title on your side. From the beginning of the transaction through the closing, we promise to go above and beyond to lend a helping hand. Contact us today!