Don’t let the market scare you away…
October is spooky season, but while the real estate world is changing rapidly, there are still plenty of good reasons to get involved… even when the market feels like it’s in flux.
Looking ahead
In this week’s 2023 Economic Forecast for Dilbeck’s team, C.A.R.’s Deputy Chief Economist Oscar Wei walked our Realtors® through myriad numbers and statistics that gave our sales partners cutting-edge understanding of where the current market stands and what we’re likely to see in the coming year. Here’s their full forecast.
Much of Wei’s message was positive:
- The economy will shift in 2023, but we’re likely to see a mild recession: it will be “brief and shallow”.
- Not expecting a significant drop in prices.
- The anticipated peak in interest rate increases is 7.75%, coming in the spring — a light at the end of the rate increase tunnel.
- No wave of foreclosures is expected.
This is a well-qualified expert’s view of our next year, shedding some real light on what appears to be a bump rather than a dive.
Historical perspective
One of the most important things that came out of this session is a reminder that while interest rates are higher than they were last year, this is not a peak in any historical sense. Real estate blogger Mike DelPrete echoes this sentiment, characterizing 2021’s boom as “an outlier, not a benchmark” and reminding us that the current shift in activity is a rebalancing of an unusual trend. As we return to normal, and while the market is still shifting, the current rates of around 7% are not cause for alarm on their own. (As a counterpoint, rates were well above 18% in 1989!) While rates, time on market and prices are different from a year ago, the adjustments we’re seeing now are actually bringing us closer to what is sustainable, and these changes will bring both buyers and inventory to the real estate market.
So, here are some things that you can do to stay informed and make strong decisions in the coming year:
Find your professional
There are many factors that feed into economic decisions, and a well-qualified Realtor®, working with solid finance, escrow and title partners, are essential to helping you through any real estate deal… especially right now. With ongoing training and team support, Dilbeck’s sales partners are up-to-date and prepared to help you navigate this landscape.
Expand your search
With interest rates leveling out and prices starting to drop in specific areas (see below), it’s a good time to buy a home that is likely to increase in value over time. This is a moment to look for investment properties and second homes
The good news is that you’re not limited by the local situation: whether you’re working remotely and looking for a place to hang your hat, searching for an affordable investment property, or helping out a faraway friend or relative, Dilbeck can help. With access to our global networks as part of the Leading Real Estate Companies of the World® and our partnership with Mayfair International Realty, we can refer you to a qualified realtor around the world, to help you find what you need… wherever. If you need a few ideas, here are some areas the National Association of Realtors has identified where US prices are currently dropping Churt:
Insights from Mayfair: One for the Road
In a recent memo to Mayfair’s international partners, Citing realities of an evolving market, Mayfair International Realty’s managing director Nick Churton acknowledges that with increased cost of living and so many changes in the way we live and work, “Today’s buyers are a new breed — they have to be.” As buyers face an increased array of choices and show understandable caution, Churton encourages sellers to adapt to an increasingly buyer-friendly landscape:
- Be prepared for delay and uncertainty, in an environment where buyers are less likely to feel pressured to make final decisions.
- Remember that the market is now less focused on “location, location, location” and more on “price, price, price”. Sellers should be ready to correct their pricing if necessary, to meet current demand and as real estate continues to shift.
- Make your home “as buyer-friendly as possible”, including upgrading energy efficiency; making it clean, tidy and decluttered; keeping it sweet-smelling and improving curb appeal.
One more thing
Finally, Churton advises, “make sure an experienced estate agent who understands how to adapt to changing times and markets is handling the sale — and then listen to that agent.” That may seem like very simple advice, but times like these make it especially clear why working with a qualified Realtor® really matters.
