A Sea of Opportunity in 2023: Housing Market Forecast
I am truly excited about the real estate market in the coming year! The last couple of years have been wonderful for sellers, who saw multiple offers on homes they didn't even have to make an effort in preparing, and had little to no home repairs requested. On the flip side, it has been just devastating for buyers, who watched as prices exploded into double digit territory and interest rates tripled. Inflation hit a 40 year high and home sales hit their lowest level since 2014. Construction costs are still 14% higher due to persistent supply chain issues. It has led us into a holding pattern for many buyers wishing to invest in real estate.
As the principle driver of home sales, the increase in mortgage rates exascerbated the shortage of available homes, as move-up buyers have been holding onto their first homes' low rates. The millennial generation are at a peak of their first-time home purchase years, and have been widely side-lined by the above conditions. As rates are expected to stabilize in 2023, I expect this dam to ease. Prices have already slowed but homes are continuing to appreciate. I am excited to see both buyers and sellers scoring wins this coming year!
Real estate is hyper-local, so knowing the conditions as close to your market as possible is critical in making good decisions on buying and selling. As most of my readers know, I review numbers in my dominant market, Southside Hampton Roads, as well as the wider 7 cities including the Peninsula, and evaluate trends in Virginia and the country each month. When preparing a client for buying/selling, this evaluation will zoom in on their market with a microscope. Being able to provide this high level of insight to my clients has allowed them to achieve the success they desire in their property investment choices. I look forward to providing the same to you and yours. Please keep an eye out for my videos on YouTube and Facebook this year, as I continue to provide information that I believe is very important to property owners. And if you would like to join my mailing list, I focus on valuable content going out to my base of clients and referral partners as a standard of practice. Wishing you a Sea of Opportunity in 2023!