2023 Mid-Year Market Update
When it comes to understanding how the real estate market is performing, it's important to have well-researched information from legitimate sources. Here are some facts and expert projections to bear in mind on the real state of the current real estate market.
Inventory and Sales Are UP in Some Markets - Home sales are up in many parts of the country and homes are selling at full price or higher, in some areas. Active home listings have increased by 67.85% year over year.
Mortgage Rates Are Anticipated to Stabilize - Mortgage rates are higher than they were a year ago, but not nearly as high as those seen in the early 2000s. Many experts believe current rates will slowly trend down to approximately 5.5% by the end of 2023.
Homeowners Are Flush With Equity - Overall U.S. home equity is now at its highest level on record - $27.8 trillion. Over 68% of Americans have paid off their mortgages or have at least 50% equity in their homes. 32% of Americans own their home free and clear.
What a Normal Real Estate Market Might Look Like
The last few years have been anything but “normal” when it comes to real estate. A normal market is balanced between a buyer and seller — one side does not have much of an advantage over the other.
A normal market from a buyers' perspective would include more homes to consider, less urgency to act immediately, home inspections not being waived, fewer bidding wars and the ability to request concessions from sellers. On the other hand, a normal market from a seller's perspective would include homes that are priced right selling quickly, equity in homes being built up over time, homes may stay on the market longer, offers received at or close to the asking price, and they may need to make repairs and/or concessions.
You also always have to consider local factors to the real estate market. For the individual buyer or seller, the market is hyperlocal. Depending on the area or even the neighborhood you're buying or selling it, these factors can change.
Especially in the Northern Virginia area, we have historically seen low inventory and high demand in our market. While the raising interest rates have slowed some buyer demand, in our area there are still plenty of buyers looking to purchase homes this year.
