So far, 2023 surprised many of us…
…Especially those that waited for a complete housing market collapse…and even they wonder if they should buy a house now or wait…
Here is what we are seeing on the market now vs end of 2022:
- Stale listings are selling
- New listings properly priced are getting multiple offers
- Open house traffic is 5X
- Mortgage applications are up
- Pendings are up
- Inventory remains low
- Affordability still sucks
However, the market is stabilizing and is becoming fair.
If you are wondering if you should buy a house now or wait, you should know the following…
For the first time in a long while, buyers have better negotiating power and are able to secure some seller concessions!
However, inventory levels and affordability remain significant concerns both for home buyers and sellers.
Overall, our local housing market is stabilizing and is acting somewhat healthy compared to the insanity of 2021 and 2022.
- Rates of price appreciation has slowed…
- Days on the market is on the rise (sellers actually have to try now to sell)
- Number of closed sales is down.
Check out the latest stats from the Minnesota Realtors Housing report 👇
We are seeing similar trends nationally…
Typically, at this time of year, we would see inventory build-up…
BUT we are seeing that it continues to fall instead…it is clear that sellers are NOT eager to sell.
Part of the reason is that most locked in ultra-low interest rates and are not willing to move to a higher-priced home…and borrow at a higher rate.
Buy a house now or wait? The window of opportunity for home buyers is closing…
The number of homes that are pending is rapidly recovering.
Knowing that invenotry is dropping instead of rising…what do you think you should do…buy a house now or wait?
Median prices are holding up due to a lack of inventory…
If the inventory continued to build up at the velocity that it did during the second part of 2022, we’d be in a very different marketplace……and I still think this is a short window of opportunity for sellers.
We do have some concerns of course…
Days on the market are moving up…telling us that as new listings hit the market, it will take longer for them to be sold which eventually will result in some sort of inventory build up if new listings hittign the market increase.
This makes me think that towards the end of Spring, we might see more houses on the market…which make me wonder is buying a house now or waiting until later in 2023 makes more sense?
Housing units under construction is near record high…
One of the reasons why there are still so many homes under construction is probably due to supply constraints that are still going on.
So at some point in 2023 a large number of housing units will be delivered which should stabilize the housing market even more.
However, new starts are coming down…
U.S. Foreclosure activity continues to increase in 2023…
According to ATTOM, foreclosures continue to increase annually for 21 consecutive months.
”The uptick in overall foreclosure filings nationwide points toward a trend that may suggest more increased activity is on the horizon as we enter the new year,” said ATTOM CEO Rob Barber. READ MORE
Find out if you should be buying a house now or wait 👇
Check out my Minnesota real estate agent profile and book a no-obligation 15 min call with me to help you decide if you should buy a house now or wait in 2023!