Mt. Bachelor Property Management Blog

Learn about all the housing market predictions for 2023, including a shift towards buyers, a retreat in home values, limited inventory, and more.

There have been ups and downs in the housing market for quite a few years, and if you are one of those people thinking of buying and selling in 2023, you need to give it some thought, undoubtedly. 

You may have no idea about the challenges you must go through during the entire buying and selling process, but you need to be vigilant enough to make a wise decision. Home prices have substantially elevated, and it’s hard to find potential buyers simultaneously. 

The housing market predictions for 2023 are unpredictable; therefore, you need to make the right choices if you are willing to sell the property you own or wish to rent it out. Creating a profitable strategy for your current house at the right time is important. Selling and renting out homes are significant steps that need special consideration.

When it comes to the real estate market, how to handle tenants, how to find tenants, and more, Mt. Bachelor Property Management can help. We have years of experience in property management and are happy to assist in your rental process. We are also experts in the industry and are a resource for many in the rental property space. Learn more about the housing market predictions for 2023 below:

Potentially Higher Mortgage Rates

It doesn’t matter even if the market has turned towards buyer-friendly as it has to be fruitful for the sellers. As soon as the market changes, the mortgage rates eventually rise, and if you are willing to sell the property, you may be at a loss due to higher mortgage rates. Housing market predictions for 2023 have potentially higher mortgage rates predicted way before.

Retreat in Home Values

One of the significant drawbacks of increasing prices in housing is the retreat of home values. Many houses are being sold for below asking prices, eventually devaluing the property. Therefore, it's true to believe that home sales and buying don’t sound like peanuts anymore. You have to engage multiple clients if you wish to sell it or if you don’t want to sell it, you can also rent your property. You can contact a professional team of real estate agents who can guide you on what should be done in the selling process or a property management company if you’re looking to rent. It’s all about timing. You have to make the right decision regarding selling or buying the property.

Homes Are Selling at a Slow Pace

There is a drop of around 1.5% in home sales in December compared to the previous month. The high mortgage rates are one of the most important reasons these home sales have fallen so mercilessly. The sky-high prices of mortgage rates have contributed a lot to slowing the pace of home sales.

Most of the reasons include inflation which has caused a sudden shift in the pace of home selling. Once inflation hits, especially within the regions of the US, we get to see a remarkable change in the prices of the properties as well.

A Shift Toward Buyers

The buyers and the sellers are experiencing a shift in the housing market in 2023. According to their experience, most buyers and sellers have analyzed that the market is out of their hands; most of the houses are being listed and contracted in 24 hours. Higher mortgage rates have eventually cooled off the market, and there seems to be less buying and selling for this year ahead. Ultimately, the buyers still in the housing market tend to be pickier. 

Considering the property's high prices, most sellers do not agree to sell their properties and instead consider renting out their properties for good. This shift has brought a significant change in the housing market and has affected buying and selling to a greater extent.

Home Affordability Won't Change Substantially

The whole logic of house marketing dictates the politics of property prices, and to our surprise, there is a rapid change in the market which has led the government to backtrack. The government has to voice that it's getting tough daily to address housing affordability. One core step the government should take is to face the problem when buying and selling housing has become so challenging. It’s the wrong politics, and the substantial government is held responsible even for the housing market's future. 

The government should notice the inflation and sky-high rates that bring year-over-year declinesin the property's buying, selling, and renting. It's becoming difficult for many people to decide on their properties, and rising prices of mortgages are one of the leading factors.

Limited Inventory for Sale

Once you decide to sell and buy any property, you must carry sufficient knowledge of every aspect of buying and selling. You should know how to find and sell a house when the inventory is low or limited. Whether you are a buyer or a seller, you look for tips on successfully finding a property with all the goods in it when the inventory and choices are limited. Some of the basic suggestions for how buyers can handle the current situation of the market include:

• You may talk to your lender about getting pre-approved
• Choose an active agent who knows the market in-depth and has a vast network. This way, he could suggest better mortgage rates and has extensive knowledge about the market.  
• You may consider lowering the price of your property. However, don’t lower it too much, only a little from the sellers having a similar property as yours. This way, you may be a better buyer, and your property can get sold quickly.  
• You can also consider the option of expanding your geographical preferences. Location matters the most for buyers, but if you are least bothered about the neighborhood or building location, you can find more options by expanding your geographical preferences.  
• Be open about properties that don’t match your ideal home. Never compromise over buying a house when you don’t feel like buying it. If you don’t like it, you shouldn’t purchase it.  
• If you don’t see your property on the market today, it doesn’t mean its worth has decreased. You aren’t supposed to freak out. You may find other listings tomorrow. You must keep yourself ready to move to a new location as soon as you get your desired house.

It's a fact that persistence and patience are the two driving factors both buyers and sellers must go through. It's usually because the sky-high prices of the properties have made it impossible to make a fair deal for both. To have more luck as a buyer and be a better seller, you must carry sufficient knowledge about the market. Additionally, as a renter, it is important to consider these trends as well. 

The housing predictions of the need for 2023 are pretty uncertain and keep fluctuating. Rather than making decisions on your own, take the advice of a property management company.

Looking to Rent? Mt. Bachelor Property Management Can Help

Looking to rent out your property? Save your energy and time and get in touch with a trusted property management company like Mt. Bachelor. If you are confused about whether you should sell your property or rent it out, consult our company to help you understand the advantages and disadvantages of both options. The company has extensive research on the market and can provide the best recommendation to you. Contact us here to leverage expert consultation regarding your property.