Is 2023 a good year to buy a house? It may not seem like it, but yes.
Hear us out.
We feel like the last couple of years have prepared us for anything. It’s made us stronger, made us ready to hear the truth and meet it head on.
So, having said that, let’s talk about the real estate market. We’re going to break it down for you Q&A style.
Q: What are current market trends in Charlotte?
The most recent data from Redfin.com is from November 2022. We compared those numbers to the same time frame in 2021 to find the shifts in the market.
- Home prices were up 12%, with a median price of $392k
- Days On Market Current: 44 days. Last Year: 35 days
- Homes for sale Current: 860. Last Year: 1,492
- List Price Current: $405k up 8% from last year
- Sold Price Current: $394k
So what does this data tell us? In plain talk, prices are still elevated, homes are on the market longer, there is less inventory (available homes for sale), and sellers are not getting the full asking price.
After Charlotte experienced such tremendous gains in the last three years, we expect the housing market to calm down. The National Association of Realtors predicts a growth rate of 0.3% in 2023. That’s a stark contrast to nearly 10% in 2022 and a whopping 18% in 2021.
Q: What are interest rates and what can we expect going forward?
Mortgage rates more than doubled in 2022, rising from about 3% in the beginning of the year to over 6% by December. The 30-year fixed rate is expected to average between 5.2% to 6.8% in 2023. Keep in mind, the Federal Reserve has the autonomy to raise and lower rates quickly and without much warning, but it appears the Fed has taken its foot off the gas a bit.
Q: So, why Is 2023 a good year to buy a house?
The playing field is leveling between buyers and sellers. Yes, the inventory remains low, but at least the frenzy of buyers and offers has slowed. Homes are staying on the market longer so buyers have some negotiating possibilities. In 2020 and 2021 buyers had to expect to offer well over asking to be in competition.
If you have cash, it is a great time to buy. Cash may become king once again with sellers.
The mortgage rates will stabilize. Home buyers in the last decade have enjoyed historically low rates. We always knew what goes down must come up at some point. Well, it’s happening now, but it’s still not as high as it has been in the past. Compared to double digit interest rates of the 70s, 80s, and 90s, under 7% isn’t so bad.
For Charlotte sellers, please always keep in mind there are still way more buyers than there are homes for sale. Don’t be afraid to list your home.
Tips for buyers in 2023
- Get a good real estate broker: Experience and know-how will be very valuable in this year’s market, especially agents who have lived through and survived the last downturn in the real estate market.
- Look at your budget: Follow the interest rates and make sure you are rock solid on what you can buy. Save your money. Remember, cash will be king once more.
- Shop lenders and lending products: Really do your homework on the lender you choose. A lender that communicates with you, speaks your language, and tries to be competitive with rates and lending products is important.
Bottom line: The Real Estate market ebbs and flows. Don’t worry; stick with us. We have survived and thrived through worse than this.
We’ve got you in 2023.