I wanted to provide you with a quick 2023 Housing Market Update. Bright MLS Reports show our local area is positioned to fend off any major changes, unlike many other U.S. regions. The predictions forecasted claim fewer sales with more stable prices in the Mid-Atlantic Region overall which is good news.
Rising mortgage rates and economic uncertainty caused buyers and even some sellers to either hit pause or just slow down during the second half of 2022. Bright MLS revealed annual home sales went down 19.1% from the year before. The shift in purchase power has led to buyers taking a “wait and see” approach to real estate in 2023 that soon to be sellers should be aware of.
A 30-year fixed-rate mortgage had an average rate of 7% this past fall. Thankfully, they have already started coming down, not nearly as fast as they rose, but I am told by a credible mortgage representative that rates are projected to reach 6% and stay there throughout the year.
These steady, lower mortgage rates could increase the housing demand slightly, but nothing like what we saw during the pandemic. There are 2 reasons for this: Buyers who were planning to purchase a home in 2023 took advantage of the record rates and already bought; and housing inventory is really low, therefore limiting sales.
Aiding affordability, home sale prices should stay where they are currently. The only areas that may be affected would be vacation/resort towns and more isolated neighborhoods (aka zoom towns), now that urbanization (city life) is back, but nothing too drastic.
I do believe days on market will start to accumulate again since buyers can take their time now. They are even requesting concessions. I have seen some sale prices negotiated with sellers having to adjust.
Looking ahead, Brett Furman Group will continue providing 5-star service to clients utilizing technology to reach a wider, online audience. While the outlook is grim for a fortune telling computer program, consider focusing on my right price analysis to sell fast and for the most money or as a guide for buying.