While the media has made it seem like the housing market is out of control, (we certainly had some ups and some downs this year) this was an amazing year for sellers and tons of opportunities for buyers. 

Housing prices skyrocketed in 2021 but in 2022, we actually saw a very similar increase in pricing up to 20% or more. Some areas saw appreciation to their home prices and this was due to buyers not having a ton of options when it came to finding a new home. Despite what the media says, buyers still need to buy homes and sellers still need to sell. Families are upgrading, people are working from home and need space in order to work at their house, and sellers are still needing to sell for a variety of reasons. 

This year, we saw Zenith point for real estate sale prices unlike any other and now our market is taking just a cyclical and typical cool as we head into those Fall and Winter seasons. 

What happened at the mid-year point this year?

It was like the halftime show happened and the government pulled the E-brake on cheap money. And so what ended up happening was, the real estate market didn't crash like the media was saying, it started to cool a little bit cyclically as we normally see at the end of that summer months, and buyers started to respond as the bank's issued new products to the market. These are called, ‘Temporary Rate Buydown Programs’, and you'll hear phrases like ‘3-2-1 Buydowns’ and ‘2-1 Buydowns’. Temporary rate buydowns are back and they are making money more affordable for buyers in the short term as buyers are waiting for those rates to come down again more permanently so that they can refinance in the future.

The market for sellers

Sellers did not miss the boat this year. In fact, even if you sold after July and you're maybe not seeing as much activity on your property as you thought that you might, sale prices are still continuing to remain strong and that's simply due to the fact that buyers still need to buy and sellers still need to sell. And that demand that we talked about throughout the year is still very strong and present.

Sellers instead are resetting expectations regarding the amount of showings that they might have or traffic that they might have on their property, and still seeing great progress as long as they are appropriately navigating the market. Have you ever been to a wedding and it feels like, “Oh my gosh, I don't want to be the first person on the dance floor”? Well, that's exactly what's happening right now. Although there are buyers who are buying out of need, many buyers have actually taken a step back because they're worried. What's going to happen with the market? And what's going to happen with interest rates? They're listening to what's on their televisions rather than most of the time talking to a local real estate professional who actually can show them there's immense opportunity RIGHT NOW!

So, what's the opportunity?

Here's what I mean about immense opportunity. There's a short window between now and when the spring market starts when all of the buyers are going to start coming back into the market. Where buyers actually have an opportunity to get in where there's less competition in the market and you can actually go and get a listing for less than its list price, or work in a great buydown on your rate, with a monthly payment that's probably similar to those that some of your friends who bought homes earlier in the year, have all raved about.

Sellers, I'm talking to you, the days of multiple offers are not over. Here's the situation; if you're pricing like it is the summer months or maybe my friend sold down the street and he was in multiple offers at this price, that was just a little bit of a different season. Right now, we've got some amazing strategies in order to still get you multiple offers in the market, that's what's happening now. 

So how can I say this? It's still a great time for both buyers and sellers in this market to take advantage of this opportunity between now and the spring market, and those who do so are going to win big. 

What do you need to do now?

There are over 1.5 million realtors in the country but the best realtors are the ones who are educated about what's happening locally, the best rate programs, and how to navigate with some of the best-selling tips. Those are Brooke Team agents. I would love for you to reach out to a Brooke Team agent today in order to just get a consultation to figure out what's my property’s worth, or what rate programs are there out there that can help me buy a house and get some amazing deals. 

Some of our buyers are getting as much as $50,000 in down payment forgivable loans to them in order to buy a house and they are raving, so excited to tell us about their experience. We'd love for you to have the same experience.

2023 predictions

As we close out the year of 2022 and we look to 2023, our predictions are this: The market will cool until around February and then, it's going to start to build right back up. 

We are already seeing a recovery from the cool that's happened from interest rates and buyers are coming back into the market and they're coming back strong. We believe that a likely cool over the next few weeks as we enjoy the holidays and then into January-February that's going to start to build, prices are going to start to rocket up again. This is simply due to the fact that inflation is still here and still present, buyers are still in the market and we're going see those prices go up. Now is a great opportunity window to get involved in the market if you've been planning and thinking about buying or selling a home.

My prediction is as we go into 2023 is that the government is going to slow down or even at some point halt its interest rate hikes and it's going to cause those mortgage interest rates to start to decline, bringing even more buyers in the spring back to the market. So, sellers, if you've been planning on selling, man, this coming year is going to be absolutely great for you. Reach out to get a valuation on what your property is worth right now. 

We want to thank you guys so much for all your referrals over this past year. It's been an incredible year for us. Brooke Team has sold over 600 homes this year and we're just thrilled that so many people have referred us and trusted us with your friends and family. 
 

Hope you enjoy the holidays with your family and we look forward to seeing you in 2023. We'd encourage you to reach out whether you're looking to buy, sell or invest in real estate, and remember, we're never too busy to serve your referrals. Find on us Facebook, Instagram, and YouTube.