As the Weather Warms Up, So Does the Real Estate Market
What are the experts predicting for the housing market this Spring? As we move into the warmer months of 2023, what is in store for Spring and Summer?
Here is what you can expect as either a homebuyer or seller.
Mortgage rates are a wildcard. Buyers who have been on the fence about buying were encouraged in the first part of the year when mortgage rates fell. However, with the fluctuation with rates in recent weeks, all eyes will be on the Feds to see how they respond.
Prices will remain relatively stable, although if rates remain where they are, we could see more increases in home prices. In fact, just since early February, home prices in greater San Diego have increased by 10%, which is something none of the industry experts were forecasting end of last year. Although inventory tends to increase in the Spring, experts predict prices will continue to receive upward pressure since inventory levels are still considered low. According to Aaron Kirman, founder of Christie's International Real Estate, and I quote “We are still seeing market volatility as interest rates fluctuate but I think prices will remain close to stable since we still have a lack of inventory.”
More people will be looking to buy. Buyer traffic is expected to pick up in the Spring with more sellers listing their homes than in January and February due to the warmer months.
Housing inventory will remain an issue. Although we will see a busier Spring than Winter, some sellers are choosing to remain in their homes unless they absolutely have to move. Sellers are basically sheltering in place, hoping for interest rates to drop so they can plan their next move causing inventory to remain low.
Buyers will buy second homes. The luxury market remains strong with more buyers purchasing second homes as an investment to hedge against inflation. With the market shift, Buyers can finally purchase a luxury property at a more realistic price without being outbid.
Of course, these are all predictions and trends, and we do not have a crystal ball to see how the year plays out. If you are in the market to either buy or sell, please reach out to my team and I so we can help strategize your next move.
Whether you want to sell your existing home, buy your first home, upsize, downsize, purchase a vacation home, or just talk about options, a real estate professional is your best source for information based on current trends in our area. If you're interested in learning more about the 2023 real estate forecast, don't hesitate to reach out - we're happy to help!