Real News, Winter 2023
The beginning of the year is the time for setting goals, and making plans. If tehy involve real estate, you better read on, as this winter 2023 market update for the Grater Rochester area is something you don't want to miss.
Hooray! It’s a New Year! Happy New Year!
It’s a new chapter, and a new beginning! 2023 is here and it brings a chance to to wipe the slate clean and move ahead with fresh vigor and new resolutions. If one of them is to buy or sell a house, read on. Even though the real estate market conditions change rapidly from one months to the next, I’m staying current and bring you this professional opinion to maximize your chances of a successful transaction in this new year.
Winter in our region is traditionally a slower season in the real estate market. This year, due to higher interest rates and low inventory, it’s likely to be even slower. Recent market changes, fueled by influx of cash into the economy in the past two years, increased most homeowners equity. In some cases to unprecedented levels. However, not many homeowners are motivated to sell and cash in the equity in their primary residences. Especially if they took the opportunity of refinancing when the rates were at their rock bottom last year.
The number of existing houses on the market is still very low. At below one month of supply, it’s far from the healthy levels of 5 to 7 months. Add to that the rapid slowdown of new construction we’ve seen last year, and I come to the realization that a climb back to the healthy levels will be rather long and painful.
The past couple of years elevated not only prices of real estate, but also our region’s prominence in the country’s housing market. The Greater Rochester area has been featured on many national list as one of the hottest real estate markets. With such low inventory levels, in the next few months I expect that the market will continue to favor Sellers and reward them with even higher prices.
However, with the cash faucets turned off and inflation fears easing, Buyers ability to meet Sellers at those high valuations will be dwindling over time. Especially if the mortgage rates remain above 6% this year, as most industry experts predict. As of today most houses hitting the market sell within few days, but bidding wars and ridiculously high offers above asking price, are probably a thing of the past. I expect that this year we will finally see an equilibrium between demand and supply, and in the longer perspective Buyers will see greater inventory and lower valuations, bringing the market back to a more healthy level.
If you are thinking of selling your house in the coming months, let's chat . Call or text me @(585)5192139 to get on the schedule. I can give you valuable pointers to maximize your profit, discuss the best strategy and marketing avenue for your property.
If you are buying there are few things we can do to widen your chances. Competition is always slimmer in the winter months so it would be a good idea to start NOW before everyone else starts looking in Feb/March.
For all your mortgage needs get a hold of Sean Palma with Prime Lending @ (585) 233 8373 for a private consultation.
