Published December 5, 2022
Upcoming Changes in Rates and Inventory
What I expect to happen with interest rates and inventory in 2023.
Today, I’ll discuss my three predictions for our real estate market in 2023, as I believe they will help you make informed decisions and plans. 2022 was a crazy ride, starting quickly with a hot seller's market, but then interest rates went up and things slowed down. A lot has been changing, and things will continue to do so. Therefore, here are my three predictions for what will happen in 2023:
Interest rates will be less volatile. Rates were a bit of a rollercoaster this year, and adjustments weren’t small. In a few months, they doubled! However, I don’t think this will continue to happen in 2023. Of course, change will continue to occur, but I predict that it will not be as drastic.
Inventory won’t rise dramatically. I meet with sellers every day, and I can tell you that they’re worried about giving up their lower interest rates. They know things are going to be more expensive if they try to buy something new, so a lot of them aren’t going to put their houses up for sale.
"Change will continue to occur, but I predict that it will not be as drastic."
We will not move into a buyer’s market. A buyer's market is where there are more than six months of inventory in the market. Since I don’t believe inventory will rise dramatically as I said in my second point, I believe we will just gravitate toward a balanced market, not a full buyer’s market. Plus, I believe that houses are going to take a little longer to sell, which will also slow the change.
Those are my predictions for 2023. Take them for what they’re worth, just know that these are my very educated guesses. If you have questions or want to talk about the real estate market, my team and I would love to sit down with you and chat about how we can help you navigate these changing waters. Call or email me anytime.
