Say Goodbye to Seasonality
There’s no denying that spring and summer have traditionally held their own as being “the right time to sell,” in real estate. But, the past couple of years has thrown all traditional know-how out the window, as the fast-changing market has forced homebuyers to pivot their plans again and again. But here’s our biggest prediction for 2023 – seasonality no longer matters.
We’re still functioning in a severely inventory-starved market, where the rules your friends and family followed a few years ago don’t necessarily hold true. So if you’ve been thinking about buying a home but are waiting for the right time, that could be as soon as possible. Here are a few things to keep in mind if you’re thinking about buying or selling in the new year.
- There’s not enough inventory to go around
By the end of September, the National Association of Realtors reported 1.25 million homes available for sale, which represented just over a three-month supply. Normally, it takes between a four to six-month supply to meet buyer demand. But that could change in 2023. Experts are predicting a cool-down in this upcoming year. For sellers, that means you shouldn’t wait to get your house on the market. For buyers, that gives you a little more room to find what you love at a better price – so start searching!
- Mortgage options are flexible
Keep in mind there are different options available when looking for a mortgage. Traditionally, most people know about a 30-year fixed mortgage rate, which can offer you a lower monthly payment and lock you into a rate now, before it gets any higher. But, if you’re expecting an influx of money or aren’t looking for your long-term home, an adjustable-rate mortgage might be what you need to lock into a low rate now and then sell before your higher rate comes into play. The Economy Forecast Agency predicts rates could surpass 11% by the fourth quarter of 2023. Don’t wait until spring or summer for more affordable rates.
- Owning a home is good for stress
Research shows that owning a home can actually eliminate certain stress factors that renters face, such as moving year after year or worrying about fluctuating monthly payments. Shopping for a home, getting approved for a mortgage and maintaining your own property are all milestones that can make you feel accomplished. Not to mention, the joy of being able to create a space that reflects you and provides a sense of security and joy – and that’s good to have any time of the year.
Don’t wait for spring to join the market.
This new year will face its own challenges for buying or selling a home. Don’t wait until spring or summer for a magic fix. If this is the year you’re making housing moves, give Baird & Warner a call today.