In the United States, real estate is a valuable commodity. Real estate markets are dynamic, and new trends can appear at any time. Home sales activity is expected to drop in the Seattle area next year while prices continue to grow. Therefore, it is hard to make a reliable prediction about the market for real estate in the United States in 2023.
Some believe that the housing market will continue to outperform compared to pre-pandemic levels. But is this the case? In today’s report, we will share our three predictions for the upcoming year. If you are interested in real estate, we advise you to read the whole article.
Running Seven-Day Average
Let’s review the market’s performance over the past seven days before sharing our predictions with you. As the name suggests, the seven-day average is a market trend indicator for the previous seven days. It provides information on recent events, is an excellent short-term indicator, and detects trends earlier than annual reports.
New Listing — 576
Listing Sold — 795
Listing Pending — 943
Back on The Market — 131
List Price Reduced — 658
Listing Expired — 194
List price Increased — 35
Contingent — 31
Listing Cancelled — 298
As you can see, the buyers’ pending rate is 943, indicating that they are still actively shopping. To what end, though? That is because interest rates have dropped recently, going from around 7% to approximately 5.95% to 6.37%. It might be a small change, but this change means a lot when we look at how the interest rates have been throughout these past months. However, we have already predicted this in the past, as you will know if you have read our previous reports on the Washington Luxury Real Estate area.
1. Don’t Expect Inventory To Grow
This might seem contradictory, but as we said earlier, hear us out. We expect inventory to increase and decrease around the year, but it will stay relatively stable. However, an increase can be seen in the summer market, but even in that case, it will not be much. Based on the evidence presented, it is clear that there is no reason to expect real estate inventory to grow in the next year. This trend could increase price pressure and worsen the housing market.
2. Nobody’s Market- Neutral
You might think it can be a neutral market for everyone, but it makes sense once you connect the previous section. As we have already said many times in the past, interest rates are going to come down next year. This is due to several reasons, including the current economic situation and pending regulations from the government.
However, just like the inventory, they will increase and decrease periodically. So, when the prices rise, the market will turn into a seller’s market, but when the interest rates do come down, the buyers will have the advantage.
However, despite the market’s neutrality, there are still some risks that homeowners and realtors should be aware of. These risks include potential decreases in home values, an increase in housing prices, and a slowdown in the economy. To mitigate these risks, homeowners and agents should monitor the market closely, make wise investment choices, and stay organized.
3. New Construction Quantity Unlikely To Increase
You might doubt this part because the material costs have decreased significantly. However, that is just a tiny part of the picture. Even though the material cost has been reduced, the cost of holding and developing a plaque is still high. This increased cost has forced many to put off construction until previous projects can be completed.
Because if they don’t, their holding costs will increase, which is not something you would want. You noticed numerous projects offering buyers between $60 and $100,000. Even though you might not see it in the purchase price, this concession affects the bottom line. This also makes it the best time to buy a house before the next year begins.
This is it for our predictions for the upcoming year when it comes to Seattle real estate. Also, feel free to contact us if you need clarification or have a question you want to ask us. We always appreciate conversation and will get back to you.
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