What is the Outlook for the Market in 2023?
Fairly boring, which I am excited for. The Real Estate market is supposed to be mundane, these past two years have been an anomaly that we shouldn't hold our breathe for in the foreseeable future. This is a good thing, trust me.
The Outlook for next year is rather uncertain at the moment. However, given recent improvements in inflation expectations, the Federal Reserve might be inclined to slow down the pace of their rate hiking or dare I say "take a pause sooner". All this optimism hangs in the ballots of declining inflation numbers. Everything we have seen this past month has been great progress. So much so, mortgage rates went from the mid-sevens down to the low to mid sixes. This makes a huge difference for buyers coming into 23. It will likely lead to much more demand following the holiday season if we can keep this up.
All this optimism is not to say that things couldn't rotate the other direction, prices could fall further until there is a floor established with interest rates. No matter which direction we go, interest rates & inflation figures will be the driving factor I believe.
The Real estate market moves much slower than the stock market on this bullish news. It takes time for buyers & sellers to re-aline their expectations, so I think there will be some time to react. However, when & if the market turns, I do not believe you want to be on the sidelines for long. This coming market turn could potentially market a considerable drop in pricing & much more reasonable interest rates. If we maintain the lower inventory we still continue to see, we could see a busy spring market again. However, likely not the same crazy price appreciation we saw in the past 2 years, which is good. That is what we want, a slow, mundane, and reliable market with 2-3% annual price appreciation.
What do you think is the likely outcome in 2023? I want to hear your thoughts...
Posted by Carson Hulak on
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