The real estate market of 2023 bears striking similarities to the market trends observed in 2021. Despite the passage of time, certain key factors have remained constant, influencing the behavior of buyers, sellers, and investors alike.
Firstly, the demand for housing continues to outpace supply, resulting in competitive bidding wars and rising property prices. This imbalance has persisted due to limited new construction and an increase in people moving into the area. Just as in 2021, buyers are facing fierce competition, struggling to find affordable options.
Higher interest rates remain prevalent. Sellers are slow to leave the comfort of their low-interest rate and jump into the new market. The lack of inventory is creating high demand and buyers are flocking to well-priced and maintained homes often causing multiple offers and above listing price offers. Buyers, who were hesitant to purchase in 2022 due to prices and later high-interest rates, can no longer put off moving. The need for more space, updated features, and improved work-from-home options continue to be a driving factor.
While not at the same level, the 2023 real estate market resembles its 2021 counterpart. Savvy buyers are opting to secure a reasonable price immediately and refinance later once rates return to a normal level. Buyers and sellers waiting for interest rates to return to their previous levels of 3% and below will be left behind and ultimately end up paying a higher price.
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