Perhaps you are looking to jump into the housing market in 2023 as a potential buyer or a seller of property in Pennsylvania. There are a lot of gloomy and scary reports in the media about what the future holds for the economy. And you don’t have to look far to find the same fearful sounding information about the housing market in 2023. Will it really be as bad as it sounds? Do the experts really believe there will be a housing crash? As we look ahead at 2023, what does the housing market look like for home sellers?
Home Buying Real Estate Investors Opinions About 2023
We interviewed three professional homebuyers from various places in the country and asked for their opionons on the housing market in 2023 based on their expertise and what they are observing in the last months of 2022.
Real estate professional, cash home buyer, entrepreneur, lead Investor and owner – WeBuyHousesinPennsylvania.com.
Looking forward into a 2023 crystal ball, I definitely see lower prices for houses and as of today the interest rate is quite a bit over 6% and that’s just for like a standard 30 year mortgage. I believe that will go up or at the least remain steady. In the Scranton, Pennsylvania area, properties were basically selling in a number of days and they were going for $10,000, $20,000, or even $30,000 over the asking price. Now, however, we are seeing the roller coaster come on down. Now we’re seeing houses selling right at the asking price or maybe $5,000 to $10,000 under now. I think this will continue into at least the first several months of 2023 if not longer.
I recently read some statistics which were interesting. These figures may not be exact as of today, but I think the trend is still in the direction of the statistics that I read in the last couple of months. The data was that a new home price not long ago was around $405,000. That average price in the area referenced in the data was now at $547,000. With the interest rate for a 30 year mortgage at the time of the article around 6.02% and the new home price of $547,000, the results are an increase of a 96% monthly payment. A monthly payment previously was $1343 and has now risen to $2628. This data, although probably not specifically accurate for every location or calendar date, is the trend around the country. This can’t continue without effecting the market in 2023. This is why I believe house prices will be driven downward in 2023.
So, of course, one knows where 2023 is going to go but I think everyone can at least agree on a consensus that it is uncharted territory and it’s not really looking to promising next year in the housing market. We do a lot of work as a Scranton, PA homebuyer, and with all of that in mind, I don’t recommend anyone trying to invest large amounts of money to fix up their home hoping to sell their home at a much higher price. If your home is outdated or needs work, I recommend low cost fixes, like a coat of paint, new vanity, new toilet, or refacing the kitchen cabinets. Houses selling above the $250,000 mark seem to me to remain slow sellers in 2023.
Marketing / CMO – Connect Home Buyers.
As far as 2023, it’s really hard to say exactly where the housing market it is going. Trends that we are noticing is that the inventory is still low, but it is starting build up which in turn moves the market from being in favor of the sellers to being more in favor or the buyers. This means that prices of home may very well start to decrease again in 2023 as the market slows and inventories rise. We are also noticing that more people are becoming uncertain with more sellers contacting us with questions indicating uncertainties in the market. Home buyer type investors can typically offer a competitive price for an older type of home, or a home that is perhaps inherited, in foreclosure, or in disrepair and provide a solution for people who are looking for a little bit of speed and convenience. With an uncertainty in the market, rising interest rates, and a shift to more of buyer’s market, 2023 seems to be coming in to view as not a great year for selling your home.
Owner – 717 Homebuyers
As we look at the last weeks of 2022, we can get some type of indication of the housing market as we move into 2023. We are already seeing a major slow down in the sales of houses over $400,000. Whereas these houses were selling very quickly not long ago, buyers are pickier, have greater inventory to select from and are, in general, more cautious about buying. Even in the lower priced houses, the buyer is starting to have more of an advantage. Buyers are looking for houses that are move-in-ready without a lot of extra work needed. Due to the rising interest rates which we anticipate will either rise more or at least not decrease significantly, buyers are no longer paying thousands of dollars above asking price like they were earlier this year in 2022.
If you have an older home and are considering doing a lot of remodels hoping to sell for a much higher price in 2023, I don’t know if the market supports that thinking right now. You maybe be able to sell for a greater price, but will the effort be worth it. Hiring contractors, paying insurance and taxes while you wait for work to be completed and inspections to be passed, may not prove to be as lucrative in 2023 as it may have been in 2022. Overall, I look at 2023 and caution sellers not to expect what they were hearing from friends and family in 2022 about great prices and quick sales. The market is slowing.
Best Option for Selling Your House in 2023
If you are looking to sell your home in the first half of 2023 and the home is older, outdated, in need of repairs, or major clean-up, your best option may very well be a professional home buyer like those interviewed in this article. At 717 Homebuyers, we can make you a reasonable up to date cash offer within 24 hours. You won’t need to make any repairs, do any remodeling, or clean up your property. We can manage all of that for you. Typically, we can close within a week. There are no other fees like closing costs or commissions. If this is a solution that interests you, especially if you are uncertain about selling in 2023, why not give us a call at 717-639-2164? You can read about how the process works and some of our many great reviews. You have nothing to lose by making a call. We hope to hear from you soon.
About Josh Eberly
A native of Lancaster County, Josh’s roots run deep in his commitment to this community. He especially enjoys helping people find solutions through real estate. Josh is a seasoned investor with experience in many sides of buying and investing in real estate. Josh enjoys reading, listening to podcasts, digital marketing, and hanging out with his family.