Waiting for Housing Prices to Come Down in 2023 Could be a Long Wait
Predictions are like opinions, everyone has one...and in many cases, both. One of the hot topics right now for which there is plenty of each to go around is that of housing prices when considered in the face of skyrocketing interest rates, crushing inflation, declining markets, low builder confidence, low mortgage credit availability, and slowly rising inventory. Some of those opinions and predictions that we take pretty seriously are those of Lawrence Yun, Chief Economist for the National Association of Realtors® (NAR). Mr. Yun suggests that housing prices in 2023 may not be headed as far south as others speculate, and in fact there may be a slight uptick, at least in certain areas. The recent rise in interest rates has proven to be a double-edged sword, acting as a hinderance to potential Buyers which translates to lower demand, and simultaneously keeps potential Sellers from listing in a tougher market, especially if they will have to secure another mortgage as well. So even with the recent lack of demand, that has resulted in some additional properties being put on the market, it has not translated to a flood of inventory, with some areas of the Country still having extremely low levels of product. He also thinks that the 7% threshold we're at now seems like it could be the ceiling for rates going in to 2023, so this combination is a large part of why he feels prices might not tumble as hard as others are predicting. Also, unlike the 2008 crisis when there was a seemingly overnight influx of inventory comprised of distressed properties, again, that is not at all the case here. Current data indicates that distressed properties account for only about 2% of transactions toady versus about 30% back in the '08 crisis. What does this mean for the consumer? If he's right, it could mean a longer wait than many were hoping for to pursue ownership. That leaves us to offer the same message we've always had that having an action plan that includes your Realtor® or Agent, and your Lender (those two at a minimum!) is more important now than ever. Also, using every means available to locate property is critical, and even more critical if you want to include off-market properties, private or "pocket" listings, and other sources of leads on properties you can't get through the same old channels, which is exactly why we created PropertyGuerilla.com in the first place. The difference between "Chance" and "Change" is only one letter. #realestate #buyingrealestate #sellingrealestate #realtor #NAR #nationalassociationofrealtors #housingprices #housinginventory #propertyguerilla #interestrates #mortgagerates