Housing Market Changes You Need To Be Aware Of

Happy New Year! Today, we're talking about our outlook for the real estate industry in 2023. We had a bit of a bumpy 2022 and finished the year extremely strong. As people recover from that, they are making plans for 2023, and we want to help you prepare. 

First, there are a few factors that are important to know. Inventory remains extremely low and is declining year over year. The market desperately needs more inventory. With that, make sure to take national news with a grain of salt. Real estate is very local, and we’re the experts in this area, so we know how things are here. 

Another factor that we’re watching is how the Consumer Price Index and Federal Reserve are addressing the inflation issue, which has a direct impact on rates. Interest rates have been at a three-year high, and we've all felt the pain from that, especially buyers, since money has become more expensive to borrow. Therefore, the buyer pool is shrinking, decreasing demand. That also means fewer sellers are entering the market because they’ll have to buy something new after selling, and they know how hard that is right now. 

All of these factors are contributing to the state of our market. Now, as we continue to move forward, we believe that we'll see similar things in 2023. This is going to be a year of correction. We’ll need to keep a close eye on things that are going to impact the market. We don’t believe we will transition to a buyer’s market, but things will start to normalize a bit. 

We also don’t believe there’s going to be a price drop. There might be some small appreciation, but we mostly anticipate that values will flatten in our area. Again, we are the experts in your area, so we will continue to monitor things and keep you informed. 

Overall, the market is still a good place to be. If you have any questions or want our help, call or email us anytime. We want to help you with your real estate needs in 2023!