To say that the past three years have been tumultuous is an understatement. Between the pandemic, supply chain mayhem, and inflation making everything seem unaffordable, people have been anxious about the housing market. The cost of houses in the country has been at a high, but that hasn’t been deterring people from buying. In 2023, we can expect to see some changes in how the housing market pans out. If you’re planning on selling your house, but have been on the fence about it, here are some predictions from experts in the real estate industry.
Inflation Will Drive Mortgage Interest Rates
Unless you’ve been in a bubble for the past year, you’re probably well aware of how inflation in the country has affected the costs of pretty much everything. One of the most noticeable pieces that have been affected has been mortgage interest rates. Just a year back, federal interest rates were at a low. Now, they’ve climbed to over 7% for certain loans. This could be a deterrent for a lot of people to buy this year until they see interest rates fall. We suggest hiring a real estate agent who understands how to sell in this type of economy.
Some Areas Will Enter a Buyer’s Market
The housing market has been hot over the past few years, and most of the country has been in what’s called a seller’s market. What this means is that the supply of homes was lower than the demand for them, making it very competitive for those trying to purchase a home
. This year, some parts of the country might shift into a buyer’s market. However, that doesn’t necessarily mean that it’s going to be hard to sell a home this year. Chat with your Realtor to see when the best time to sell a house would be and what the best selling tactics are going to be.
The Supply Chain Troubles Might Continue
The pandemic caused a lot of issues that haven’t been resolved. One of the more prominent problems has been with the supply chain. What this means is that the supplies needed to build homes as well as the availability of labor have been at a low. Over the years, the country has struggled to bounce back from the issues and shortages caused by the supply chain. We will likely see this continue into 2023. If you’re planning on selling a home, this could potentially give you an upper hand and help you sell your house fast
. Keep track of how homes are selling in your area and plan your selling strategy around that.
Home Prices Could Plateau
It’s no secret that home prices in the country have been very high. This year, though, we can potentially see prices plateau. While this might seem like a breath of fresh air, the high-interest rates will effectively cancel out any lower prices. Keep an eye on home prices in the area and price accordingly. Pricing too high could deter people from making an offer while too low of a price could mean you lose out on profit.
Predictions aren’t always right, and when it comes to selling a home, it’s best to do so with a good strategy. Stay on top of market changes, get familiar with the local market, and hire a real estate agent who knows what they are d