by Ryan Renner
on Friday, December 30th, 2022 at 2:17pm.
2022 was a crazy year for real estate.
It started off crazy and then interest rates caused a huge shift.
Here are some of my predictions for 2023.
At the beginning of 2022, a 30-year fixed mortgage was around 3.11%.
Today, interest rates on a 30-year fixed mortgage are around 6.25%.
What a difference a year can make. I don’t know anyone that predicted interest rates to double.
My prediction is interest rates will go down but not by much. I think rates for 2023 will be between 5.5% - 6.5%. We will not touch 3% or 4%. Get used to the new normal.
Omaha has seen homes appreciate 10% or more in the past several years.
That will come to an end. Some areas of the country will see home prices drop, but not Omaha.
Supply is so low in Omaha that I still think home prices will rise slightly - maybe 2-3%. But not 10%.
The higher interest rates are slowing down appreciation. But, high-interest rates are also causing many people to stay in their current homes. That will continue the supply and demand imbalance, and if too many people stay put, it could push prices even higher because of no supply.
Sellers: Don’t Expect a Quick Sale Without Work
Sellers have been spoiled over the past several years. It was common to get multiple offers above asking with no inspections.
Times are changing. There will still be multiple offer situations and homes that sell above asking. But, it won’t be as easy.
It will take more effort and preparation to get your home sold for top dollar.
Staging, decluttering, and pre-inspections are just a few ways to stand out.
And the home needs to be priced right.
Buyers: The Tables Have Turned (a bit)
It has sucked being a buyer the past few years.
You had to offer $20k over asking, no inspections, and you’re first born even to have a chance.
Things are changing. In 2023, we are going to see more offers accepted with…
seller paid closing costs
home sale contingencies
But, there will still be multiple offer situations. A home that got 10 offers last year may only get 2-3 offers. Maybe you won’t have to offer your firstborn this time around.
How to Prepare?
If you are a buyer or seller, you must be prepared for the shifting market in 2023.
It’s never too early to reach out to me and talk. I can help make sure you are in the best position to make a move.