You’ve been keeping tabs on the real estate market frenzy since 2020, and you’re finally about to jump in. Whether you’re planning to sell your home, buy a new one or both, you want to quite literally make a big move in 2023.
Of course, timing is everything in life and real estate, so you want to make sure you get it right. This is important because it can impact both the sale price of a home and, in a competitive market, your chances of submitting the winning bid.
Interest Rates Are Dropping
Mathew Pezon of Pezon Properties said recent drops and stability in mortgage rates have prompted many potential homebuyers to enter the market in 2023. Although some may be holding out for further decreases, the favorable numbers are encouraging an increase in homebuyer activity.
According to Mike Qiu, a real estate agent from GoodAsSoldHomeBuyers.com, predicting the optimal times for buying and selling homes can be a daunting task due to the ever-changing real estate market. Nevertheless, by analyzing certain trends and factors, homeowners and homebuyers can make informed decisions in 2023.
“In the current economic climate,” he said, “interest rates are expected to remain relatively low, which could encourage more people to enter the housing market.”
Fewer Homes on the Market
However, this demand is not being met with an adequate supply of available homes, as many homeowners are holding onto their properties due to low mortgage rates and high equity. As a result, there are fewer homes on the market, which is expected to continue throughout 2023.
“There is still a huge inventory shortage,” said Ralph DiBugnara of Home Qualified. “So there aren’t enough homes for sale and there won’t be for while which is why home prices aren’t dropping more. Interest rates have increased and inflation is high so some buyers have left the market making it less competitive. But there are still more buyers than homes available.”
‘It’s a Great Time To Buy’
of Coldwell Banker Warburg said the market has been slow since last summer and buyers are “always trying to time the bottom of the market, so they have been waiting by the sidelines.” However, she warned that we never know the bottom until we look back.
She said this spring is a good time for buyers to act. “Right now, it’s a great time to buy. Most sellers have caught on that they have to lower their price or negotiate down more and interest rates, while still higher than in early 2022, are lower than in the fall/winter of 2022.”
Lucas Machado of House Heroes agreed: “If someone is looking to sell their house and they’re not willing to wait until 2024 and beyond, then in my opinion, the sooner the better. Depending on the market they are in, real estate prices could be lower in the second half of 2023. Also, the summer is always a popular time for real estate sales, so the increased competition that comes every summer will likely help keep prices up in the next few months.”
of Coldwell Banker Warburg said, “According to the Fed, a recession is looming. Historically, that means two things. The first is that interest rates will come down. The second is that chances are high that housing prices will rise — as they have nationally in all but two recessions since 1980. Buyers closing now will have the benefit of closing before housing continues to appreciate and can refinance to lower their monthly payments when the time comes.”
Spring Is the Time To Sell
Agent Jane Katz of Coldwell Banker Warburg agrees spring is not only a good time to buy, but also a decent time to sell.
“I believe spring is the best time to buy and sell homes,” she said. “It’s notoriously the busiest selling and buying season of the year, and people have come to expect this is ‘the’ time.”
“Ultimately, buying or selling a home should be based on personal circumstances, such as financial readiness, job security and lifestyle preferences,” said Dino DiNenna, a broker and Realtor with Southern Lifestyle Properties.
“Prospective buyers and sellers should carefully evaluate their situation, consult with real estate professionals, and monitor market trends to make informed decisions that align with their goals and preferences,” he said.
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Laura Beck contributed to the reporting of this article.