11/30/2022
Let’s talk about what is happening in real estate today!!
So How's the market? 🏠📲
▪️Prices have held steady for the 3rd quarter of 2022 with a slight price adjustment downward in housing for 2023.
🚨Any prices retained in 2022 that offered bidding wars, removal of terms or forfeiture of funds did not establish new market value highs, but did have buyers willing to overpay to obtain a home in that market.
▪️Rates have soared the second half of 2022 and will level off in 2023. We see trends for interest rates to hover around 5.875 to 5.99% in the spring of 2023.
🚨This is about a point lower than today and historically lower than the life time average of rates.
▪️Affordability of homes will bring new programs and governmental entities to the real estate table in 2023
▪️New Construction has not kept pace with the demand of buyers wanting new homes and will lag behind in 2023 for inventories creating a price stability in housing
🚨There will always be some standing inventory in a shifting market and this is a good time to buy a new builder home.
🚨Workforce will go back to work in 2023 for at least 3 days per week and the two family designed homes will continue to grow in numbers as parents and children decide to split the higher costs of housing.
▪️The standard for supply and demand to create an equilibrium in buyers and seller has been 6 months. I would suggest that with the increase in the prices of homes over the last 5 years and the result of lower inventories predicted, a 3-4 month supply will be close to a balanced market.
Overall, 2023 will be a more normal year. Based off of the sold data through October 2022, we see approximately 48,000 resale homes selling in 2023. This number would be a normal amount of sales.
📲Call today for more information on the real estate market!! 303.880.8561 or [email protected]