Insider Info From The Phipps Team for the New Year
While no one has a crystal ball, based on information from financial experts, carefully studying our local market data, and our overall experience, here are some of our predictions for what we can expect in the first quarter of 2023:
1) Home Buyers are returning to the market, and we expect showings and buyer activity to increase steadily through the spring. In the first two weeks of the year so far, open house activity has been strong, and homes that are located in high-demand areas are still seeing multiple offers. As of the week of January 16th, showings overall increased by 14.5% from the previous week to 12,735 total showings set with and average of about 3 shows per property per week. What’s interesting is that buyers are being more discerning when selecting a home to write a contract on, and are on average looking at 16 homes before going under contract.
2) Home prices will not change significantly. Realtor.com predicts an average increase in prices of 5.4% nationwide in 2023, while Fannie Mae economists project a 1.5% drop in home prices this year. This is highly dependent on what interest rates do. Some experts say rates will not change significantly until the end of 2023. Rate buy-downs continue to be a great tool for buyers who are financing their home purchases.
3) Inventory will increase from now through springtime. New listings are already making their way to market, increasing week over week by 17.0%. By March, an larger influx of new listings will bring more inventory for buyers, but be aware that means that will likely also bring increased competition as more buyers re-enter the market.
4) Homeowners in a position to do so will look to rent their low mortgage rate properties and step into the role of landlord. With rental rates starting to increase yet again, expect this to be a lucrative option for property owners.
Want to talk with us about the current real estate market and what it means for you? Get in touch!