If anyone tells you they can predict the outcome of today’s market, unless they have a crystal ball and know how to use it, run. That’s right, asking what the 2023 housing market is going to look like is as fruitful as asking what this year’s stock market is going to do. Guess all you want, only time will tell.
There are, however, several factors that seem to point in the direction of a decent market. They may not give off a multiple-offers-by-noon vibe, but they seem to guarantee that buyers and sellers will be coming to the closing table in reasonable numbers this year.
Here are some indicators that will help gauge the market in your area.
1) Rentals remain at premium prices — Rent continues to remain at an all-time high, and as rental rates go, so go housing prices.
2) Always consider supply and demand — Most sellers believe that if they wait for the weather to improve, they’ll be able to sell for more. If everybody follows that logic, it becomes counterproductive. The more homes that are available for sale in a specific area, the more competition a property may face in terms of final sale price.
3) Days on market — It’s an important indicator of how hot a market is, but I must warn you, the numbers that are available to the general public are somewhat fabricated. A real estate professional can look up the authentic history of a property at MLS.com. Always ask a professional for clarification.
4) Average sold price — That means the actual price the house was sold for, not the price it was listed it. Whether the first number is higher or lower than the second is a huge indicator of the state of the market. Please also consider that the sold price doesn’t tell us what it took to actually close on the property.
5) Pre-approve, then look — Always consult with a lender for a pre-approval before touring properties. With technology at our fingertips, a few clicks, and a phone call can help you understand your buying power and the going rate.
6) Keep an eye on inflation — A good rule of thumb is to follow the economy. Asn inflation goes up and down, typically interest rates follow.
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