2023 Real Estate Trends: What You Need to Know
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Loading... - george edward
- 24 Feb 2023
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With so much happening across the country and the costs of everything on the rise, you might be wondering how all that’s impacting real estate.
Will we see more skyrocketing home values? How will the real estate market shake out in our current economic climate? Whether you’re selling, buying or staying put, here are the 2023 real estate trends to watch!
Real Estate Trend #1: Home Inventory Is Low but Growing
The real estate market has been dealing with low inventory for a while now. That just means there weren’t enough homes for sale to meet buyer demand—a real estate trend that only got worse during the craziness of 2020. But the trend may be taking a turn. Inventory has been moving upward since May 2022, and November saw the year’s largest month-over-month jump since then (and about 46% over the same time last year).1
Still, the number of active home listings in November 2022 was around 38% lower than the pre-2020 levels of November 2017–2019.2 But don’t worry, we’ll walk you through what to expect if you decide to buy or sell soon.
What Low Inventory Means for Buyers
Lower-than-normal inventory means you need to be on your toes when you go house hunting because the best homes will likely be snatched up fast. In November 2022, most homes spent 56 days on the real estate market—18 days less than typical pre-2020 levels.
That doesn’t leave much time to hem and haw over your home search. If you want to find a good home in this slim market, here’s some advice:
- Sacrifice some wants. If you can’t find the house you want, be willing to give up some nice-to-haves for your must-haves. Find the least expensive home in the best neighborhood you can afford and upgrade over time.
- Expand your search. Is the location where you plan to buy too competitive? You might be surprised at the gem you can find in a less popular neighborhood. Working with a real estate agent who really knows the area is the best way to find a home that fits your budget and lifestyle.
- Get preapproved ASAP. Getting preapproved for a mortgage before you go house hunting is a must in any market. And it’s even more important when home supply is low. If you don’t do this legwork ahead of time in a market like this, you could give a preapproved buyer free rein to swipe the home you want right out of your hands.
