My educated predictions for inventory and more in the 2023 market.
I hope you had a great holiday season, a fabulous Christmas, and a happy New Year! As we move on to our first blog of 2023, today we're going to cover the hot topic of what the real estate market is going to do throughout the coming year. If you do some research on this, predictions can be all over the place. However, I’m here to tell you my educated and experienced opinion as one of the top agents in Sacramento and all of California.
In 2022, the number of homes sold went down by over 40%, meaning there were 40% fewer buyers than in 2021. I believe that
rising interest rates and reluctant sellers created a year of inaction. On top of that, there were crazy amounts of demand after the pandemic lockdown status started to be lifted.
What does all of this mean for 2023? I believe some of these slowdowns will continue. Many homeowners have extremely low interest rates, some as low as 2.5%, so they won’t want to sell if they have to buy at 7%. This will mean there will be a reduced number of homes for sale. Also, sellers will have to be very highly motivated.
Overall, I believe the real estate market will be slower and that it’ll stabilize instead of jumping in inventory like it did in 2008. 2023 is going to be the year of equalization. We may see another slight reduction in home values to accommodate higher rates, and the Fed should adjust rates throughout the year.
These are my predictions for the coming year. If you have any questions or concerns, don’t hesitate to reach out! You can call or email me anytime; I would love to help.