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What do brokers expect in 2023?
Turning our attention and thoughts to 2023 and 2024, we see a clear shift back to a more balanced market that will require buyers to be patient and sellers to recognize an ambitious price shift.
In every market move there are opportunities for the cash buyer, and in a down market there will be chances to buy properties quickly. Sellers who have priced their property aggressively will likely find that buyers are no longer willing to overpay or compete in multiple offer situations. However, nimble buyers can be opportunistic: when a great property comes on the market, cash will provide the opportunity to acquire the right property at the right price.
For buyers who choose to finance their purchase, local buyers and resort buyers who need financing will have an easier time getting their offers accepted than in 2021 and 2022. During this hot market, buyers who had needing financing to buy were disappointed when their offers were not considered instead of cash buyers. Inventory in the resort market remains low, which will help maintain high list prices.
“Given that we’re unlikely to see any improvement in affordability anytime soon, many buyers will be shut out of the market, while others simply won’t want to make a purchase,” the economist said. real estate Sam Hall. “As bidders become scarcer, market power will shift more from sellers to buyers.”
This environment will give an advantage to buyers who have carefully evaluated the properties on the market, defined their objectives and have clarity in terms of financing, contingencies and decision-making. In these tight inventory markets, having a seasoned professional broker is essential.
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The Federal Reserve has raised interest rates to counter inflation and slow the overheated economy, which will clearly lead to changes in the housing market. It will be greater in areas where buyers are very sensitive to rate changes.
In the resort market, this will certainly affect local buyers and likely give second home buyers pause. These buyers are likely to take a wait-and-see approach. The silver lining is that as the market slows down a bit, financing will be available and refinancing will be the preferred option when interest rates moderate lower. You marry your home, but you’re just dating your mortgage!
While 2023 may not be the ideal time to buy a home due to high interest rates, the landscape ahead looks much better in 2024.
Home prices will rise slightly and sales will fall next year before returning in 2024, according to Lawrence Yun, chief economist of the National Association of Realtors. Yun says there will be a “strong rebound” in 2024.
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“Prices will be mostly flat across the country (in 2023), which means half of the country will see minor price gains, the other half of the country will see minor price drops,” Yun told reporters. attendees at The Realtor Experience conference in Orlando. Floria in mid-November, noting that some specific markets such as San Francisco could see a price drop of more than 2%. “Then in 2024 you have to say the long term path looks bright so hang in there for this year’s difficulty and maybe next year still in transition but after that everything should be in a better situation.”
While the next few months could pose grim challenges, the market seems to be looking towards a bright future. If you’re looking to buy, either in cash or with the prospect of a refinance, now might be the time to get started.
Jack Affleck has been a Vail Valley resident for over 35 years and is an associate broker for the Arrowhead office of Slifer Smith and Frampton. He is one of the best brokers in the valley and ranks in the top 5% of real estate agents nationally. Lissa Tyler has been a top producer since her freshman year at SSF and is the branch broker for The Slifer House. Contact Jack and Lissa at Jaffleck@Slifer.net and LTyler@slifer.net.
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