Now that 2023 is here, many people are probably thinking, “What is going to happen with the housing market this year?” We wish we had a crystal ball as well. What we predict, only time will tell, so here is our forecast for this new year.
In the Bay Area, it will still be a tough market for first-time home buyers as inventory is still very low. Combine that with high-paying competitive tech and finance jobs in the area, and you will still see individuals paying well
over asking if the home is the right fit. But then, there are some owners who will not sell if they can’t get top dollar; and some homeowners have crazy, low-interest rates and will not want to let that go either.
There are buyers who have been looking for the past couple of years to no avail but are continue their search seeking to create equity. And, there are buyers who are just beginning their search. This does leave a small opening for buyers since prices have reduced significantly, especially in the condo and townhouse market. Buyers –those who can digest these high-interest rates at a lower purchase price and can hold out to refinance when rates drop and those who budget well — will be in great shape.
Rates will continue to seesaw up and down. I’m thinking maybe around the 3rd quarter of this year the magical 4% rates might have a chance to make a comeback.
2023 will be the year for savvy and risk-taking buyers to step into the tough Bay Area real estate market.
Real Estate in 2023
Published on January 12, 2023
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