Happy new year!
Now that the celebrations are over and 2023 has begun, many wonder what the housing market has in store.
As the market continues to normalize, thanks mainly to rising mortgage rates, here’s what the Rutledge Properties team is anticipating for the early part of this year.
The outlook for home inventory
According to Calculated Risk, home supply has surpassed 2021 levels by 58%, but we're still roughly 38% below the housing supply we had in 2019 (the last "normal" year in real estate).
So, while we expect supply to rise, the number of homes on the market is still historically low. Low inventory means that, at least for the start of 2023, we can expect it to remain a sellers' market.
Our predictions for home pricing
It seems like pricing will remain pretty consistent, with some small increases. Sellers are still likely to walk away from their sale with significant equity once they find the right buyer. Yet another reason why the right pricing and marketing strategies are crucial!
Rising interest rates have limited purchasing power for some buyers, but remember—these rates aren't historically high. We've just gotten used to unusually low (and unsustainable) rates over the past few years.
What we expect to see from buyers and sellers
It's hard to get a clear picture of buyer behavior from the January market since most buyers wait for a more extensive selection of inventory before making decisions. By the middle of March, we should have a clearer picture of the supply.
One thing we feel confident about is that we are back to a more balanced deal. Inspections and mortgage contingencies have returned, which is much healthier for all parties.
How to use this January to prepare for the spring market
If you're thinking of listing this spring, spend this post-holiday time preparing your house. If your kids are still home this month for winter break, go thru their stuff with them so that you can determine what to put into storage and what you can give away.
Beyond that, ask me to set you up to receive MLS alerts for new listings that match your new home wish list. These straight-to-inbox updates will help you keep a finger on the market's pulse as things pick up in the coming months.
The good news about the greater Boston area is that exceptional schools, access to jobs, and plenty of arts, culture, and nature make it a desirable market regardless of the trends.
If you need help preparing to buy or sell a home this year, now is the time to start planning.
January’s Top Three: Ways to Use Your Home Equity
Many homeowners have seen notable increases in their home equity over the past few years. As you hear rumbles about a recession and see interest rates rise, you may be wondering how you can leverage your equity to reach your personal goals. Here are three common ways you might use your home equity.
1. Toward a down payment on a new home.
You might consider securing a Home Equity Line of Credit (HELOC) and using your current home’s value to make a down payment on a new home.
2. To make improvements to your current home.
Or, you could use that equity for renovations or improvements like replacing your roof or floors that enhance your home while adding value for when you eventually sell.
3. To pursue business, education, or other goals.
Home equity can also be used for major ventures like new business startup costs or a degree program.
We don't just help you buy or sell a house; we welcome you home!
Rutledge Properties is an independent, women-owned local real estate brokerage. We’ve been helping clients in the Metrowest area buy and sell their homes since 1978.
Because we are not part of a big, impersonal chain, we get to do things our way—and our way is all about you. Our clients are our neighbors, and we are committed to putting their needs first every time. We leverage our insider knowledge about the community, industry-leading technology, dynamic strategies, and our worldwide network to provide a level of service that keeps Rutledge clients keep coming back to us, move after move.
