Sell now or sell later? For many it’s a tough decision.
The home-buying frenzy from a year ago has cooled, thanks to elevated interest rates coupled with higher selling prices. But that also means inventory is up, and closings are down. What does that mean for 2023?
Economic forecast
The first half of 2023 will be marked by mild economic downturn, with signs of recovery in the later half of the year, according to an analysis by Fannie Mae.
Home sales forecast
Fannie May also forecasts an 18.5% decline in single-family purchase mortgage originations from 2022 — a big switch from the brisk activity of 2021.
How will buyers and sellers respond in 2023?
First-time home buyers are delaying their plans: Currently elevated home prices and interest rates result in a house payment they can’t afford. A softening economy would potentially leave this group even less buying power.
Homeowners have less incentive to sell: In 2020 and 2021, homeowners refinanced in droves to lock in record-low fixed interest rates. With current market rates markedly higher than what they have been, many are hitting pause on their plans to move.
What does this mean for sellers?
Less competition: Despite fewer buyers, there shouldn’t be an oversupply of homes in the pipeline.
Bottom line: Though you can expect a longer timeline for selling your home, there’s no reason to postpone if you’re ready to make a move!
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