Many people have concerns about the current state of the national economy. Inflation is as high as it’s been in nearly 40 years, and interest rates are also continuing to rise. The housing market has been hot for the past couple of years, but most experts anticipate that a recession will take place during the coming year. What could this mean for anyone who is thinking about buying Coral Gables real estate in 2023? You’ll find answers to many of your most pressing questions as you read this article. If you need help finding information that isn’t addressed here, reach out to the Elena Kemper Group, and they would love to assist you.
1. What has the market been doing lately?
Home prices have risen slightly over the past year, but have been on the decline for the last several months. Most homes spend one to two months on the market and go under contract for a price slightly below the listing. Some homes will experience higher demand and may attract multiple offers at or close to the listing price.
In many ways, the Coral Gables real estate market is a good reflection of what the market is doing on the national level. For the past few years, home prices have risen substantially in many areas as buyer demand has rapidly increased. Many people chose to take advantage of interest rates that dropped close to 2 percent. The result was a market that was highly favorable for sellers. Things have changed, and buyers aren’t coming out of the woodwork in the same way that they were in 2020 and 2021. Many people are struggling to keep up with rising costs of living as inflation shows no signs of slowing down. It’s also easier for many people to sit back and wait to buy a home when interest rates are rising above 7 percent.
2. What will happen to the market in 2023?
Don’t be surprised if a slight recession takes place in 2023 for many of the reasons already discussed. Some parts of the country are already seeing average home prices trending in the wrong direction. Experts predict that this trend will continue into 2023. That said, nobody should feel panicked about the possibility of another market crash happening. It’s highly unlikely that 2023 is anything like 2008. Any recession that happens will be slight or minimal by comparison. If you need extra encouragement, take a look at the current mortgage delinquency rate. Many with knowledge of the industry feel that the mortgage delinquency rate provides a good indication of where the market could be headed in the coming months. A higher mortgage delinquency rate would point to greater volatility and amplify concern about the current state of the market. Recently mortgage delinquency rates were as low as they have been at any point over the past 25 years. This should be a huge encouragement.
3. How does the market change from season to season?
Sellers usually have more success earning top dollar for their homes when they publish their listing in late spring or early summer. Demand is higher during this time of year. Tax refunds have usually come back by this point, and potential buyers can use the extra cash to fund their down payments. Parents with school-aged children can move without pulling their children out of school and still have time to settle into their new home before classes resume in the fall. The market stays hot through August and begins to cool down in September and October as people become distracted by planning for the holidays or pursuing end-of-year targets at work. Don’t be surprised if you see average prices rise during the summer and come down slightly as winter approaches.
4. Is it a good idea to buy a home in 2023?
Potential buyers may worry about rising interest rates, but waiting for interest rates to drop is risky. Nobody knows for sure when it will happen, and by the time it does, you may face stronger competition from other buyers who are looking to capitalize on lower interest rates just like you.
You’ll also miss out on all of the equity that you could build if you were to go ahead and purchase a home now. If you’re thinking about buying a home in 2023, you’ll want to make sure you have enough cash on hand to fund a down payment and pay your closing costs. These usually amount to 3 to 6 percent of the total cost of the home. You’ll also want to reach out to a lender to begin the process of getting pre-qualified or pre-approved for a loan.
5. Is it a good idea to sell a home in 2023?
Homeowners may wonder if it’s a good idea to think about selling when prices are down. Thankfully, prices are still significantly higher than they were a few short years ago. The market is still running relatively high from the fast price increases over the course of years prior. If you don’t already have a clear idea of what your home is worth, reach out to your realtor and see if they can run a Comparative Market Analysis for you. This will give you a better idea of what your home could be worth based on recent sales of other comparable properties in your area. If you’re not planning to list your home for sale immediately, you can use the extra time to perform a few small renovations that will boost your home’s ROI and help your listing go under contract faster.
6. Who can help me shop for a new home or sell my existing home?
The Elena Kemper Group can help you with your upcoming sale or purchase regardless of the current state of the local market. Each of their talented agents has expert knowledge of the Coral Gables area, and they work hard to stay updated on what is happening in the Coral Gables real estate market. They will work hard to ensure that you are educated and well-represented throughout the entire process. Contact their office when you’re ready to take the next step toward buying or selling a home.