Real Estate Market Update: What’s The Forecast for Spring 2023?

While spring is typically the time to list your home and also typically the time of year when the most homes are sold, there are differences from year-to-year. We’re continuing to return to a “normal” real estate market coming off the crazy, hot COVID-times. 

As the market continues to “cool off,” realtors and their clients alike should see a more balanced playing field between buyers and sellers. Continue reading as we highlight a couple of key points from the current real estate forecast for spring 2023 and where the market stands right now. Who knows? Houses on the market may even last longer than the cherry blossoms this year.

More Room to Compromise

To ease everyone’s anxiety, but especially buyers’ anxieties, we can expect those bidding wars to cease for the time being. The cash-only offer well above market value because of extremely low interest rates are gone… for now at least. 

This means that sellers might be more willing to negotiate terms or lower their asking prices. Higher– although still relatively low when looking at things from a historical perspective– mortgage rates essentially translate to homes taking longer to sell and buyers having a little more time to decide on whether to purchase a home or not. 

Because of low inventory though, buyers might be more willing to compromise on their own checklists for their “perfect” home and make an offer on one that checks off all the key items. In the DC area, you should expect to see a few more homes coming on the market throughout the spring, but low inventory is expected to remain an issue. 

More Time

Again, less anxiety or pressure to accept an offer possibly from sellers’ perspectives, and more time to look and decide for buyers is a sign of the return to normalcy. However, there is one caveat because we still do live in the DMV. There’s always a steady stream of new hires, recent grads, and military families moving through or deciding to settle in our area. Expect more time, but not much more. The average house is still only on the market for 12 days and we’re seeing tons of saves and “likes” on Zillow, Rocket Mortgage, Truilia, and the like for houses that are still under the “coming soon” label. 

If your house is sitting as a seller, you can expect potential offers for less than asking or you may want to consider dropping your asking price. This is why it’s important to have an agent who knows you and your ranges well, to see what you can negotiate and still get a great offer that makes you happy and your buyer motivated. 

As Buyers, Don’t Wait Too Long

You may be tempted to wait to buy with the recent increase in mortgage rates, however, there are still many reasons you should act now, or in the near future, if renting. Mainly, home appreciation values are still steadily increasing. According to the latest data, the national average is 14.5% year over year and 2% month over month (Millionacres.com).

There are also numerous benefits to home ownership, especially when the economists aren’t too certain of what will happen with post-COVID, Ukraine War, and other global factors coming into play right now. 

Rental prices are steadily increasing as well, and you don’t get any additional value. Meanwhile, homeowners are building equity, providing a sense of stability and security, and seeing the tax benefits to homeownership. If you don’t see anything on the market that would fit your family or you have a potential new build, certainly keep renting, but don’t be afraid to jump in and make an offer if you’re on the fence. 

The Bottom Line

This year’s market is predicted to be more stable than 2022 and 2021. You should be confident in both buying and selling right now and this coming spring, but if you have fears that need assuaged, feel free to reach out and give us a call. We’ll give you the most recent updates on the market and what the data is telling us, and we can get into your specific concerns and tailor the conversation to your questions and whatever is causing you anxiety or hesitation. No matter the market or season, buying or selling a home is a huge decision, and we pride ourselves on helping our clients every step of the way. No matter where you are on your journey, reach out for a consultation today!