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2023 Housing Market Predictions: How to Advise Your Clients Now
With interest rates still up, and housing prices not falling, it’s safe to say a lot of potential home buyers are at a stand-still. As real estate professionals, we understand there’s more to the bigger picture—and it’s our job to educate prospects of what’s to come. Right now, many industry experts are predicting 2023 to be even worse for the housing market than 2022. If that’s the case, now may be the right time to push your clients to make a move.
Some real estate experts have tossed around the idea of home prices dropping in the next 6-12 months—making it easier for buyers to purchase. However, according to Goldman Sachs, this isn’t the case. “We expect home price growth to stall completely, averaging 0% in 2023,” Goldman strategist and economist Jan Hatzius wrote in a memo to clients. “While outright declines in national home prices are possible and appear quite likely for some regions, large declines seem unlikely.”
Another road block to potential home buyers making a move right now is the high interest rates. According to data from Freddie Mac, the average rate for a 30-year fixed mortgage climbed to 5.66% for the first time for the week ending Sept. 1. If you can remember, the rates were at 2.88% not too long ago, so this huge jump has many potential home buyers rethinking their options.
The bottom-line is, the combination of inflation and low inventory means that prices will most likely stay high, or in some areas even go up. So, what does this mean for your business and getting clients to the closing table? It means now’s the time to let them know the market may not improve for a while, and offer them a new strategy to get them moving. What do these strategies look like right now?
- Reevaluate the budget—are there adjustments that can be made so they can afford their dream home?
- Are they willing to look at other homes that may not meet all their criteria?
- As an agent, you know how to make the best out of properties and sell the positives. Perhaps they need to see a fresh take on areas they previously refused to look at.
- There are financing options that work well when interest rates are high. VA and FHA Assumable Loans are a great option right now that you can make your clients aware of. To learn more about these types of loans, click here.
With 2023 around the corner, we are all holding our breath and hoping the housing market will bounce back. However, if predictions are right, we need to be strategic with our efforts to attract, inform, and help clients meet their goals of homeownership.
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Velocity Title supports the real estate industry with a comprehensive line of title services that add value to each and every transaction. At Velocity Title, Our Personal Support Makes You Look Good Every Time! With a focus on the best CUSTOMER EXPERIENCE, Velocity Title incorporates leading title TECHNOLOGY and EXPERTISE into every transaction—enabling the final step in the home buying process to be EASY, EFFICIENT and INFORMATIVE. For the perfect settlement experience every time, click here or contact us today!