More than 5.6 million homes were sold in 2020 alone in the United States and many more have sold since then. But what are housing market predictions saying about 2023? After all, the housing market has only been getting more and more expensive in recent years and even in recent months.
If you’re holding onto a house, you might be wondering if it’s time to sell or if you should wait a bit longer. The answer isn’t quite so simple. Keep reading and learn more about selling your home at the right time and what current housing market predictions are saying about the near future.
What Is the Current State of the Housing Market?
The thing about the current housing market is that it has been suffering from inflation for quite some time. Houses are currently worth more than they have been for years. Even small and old houses are selling for unusually high prices.
This problem of inflation has made it difficult for many people to buy new homes or even build new homes to live in. Instead, many people have no choice but to opt for houses that they’re not really crazy about just so they can save a bit of money. Others prefer to live in apartments where they might also save a bit of money, but not much.
Besides the housing inflation making it difficult to buy houses, it is also difficult to even get a mortgage to buy a house. This is because, after all, inflation affects just about everything in the economy, and this includes mortgage rates. Mortgage rates are currently higher than they’ve ever been before and this, of course, makes it difficult for those who normally would be able to buy a house without any problem.
Monthly mortgage payments are hard to deal with since they’ve become so steep. More than that, many people are considering selling their homes so that they won’t have to deal with such high mortgage payments. But is that such a good idea considering the current state of the housing market?
It depends. At the moment, the housing market is in a bubble. As that bubble grows larger and larger, it becomes more likely to pop. If that does happen to occur, the prices of homes (and the prices of everything else in the economy) will likely plummet.
This happened not all that long ago in 2008, a year famous for its economic recession. In 2008 and 2009, houses reached very low prices and it was very difficult for anyone to sell their houses because the economy was in such a bad state. On the other hand, wealthy individuals were able to buy home homes for nothing to add to their real estate investments.
It took many years for that economic collapse to sort itself out, but now it seems that we are in the same situation all over again. Of course, we have no idea when this housing bubble will pop. It may continue to grow for many more years or it may pop right away.
To get a better idea of whether or not you should sell your house, let’s take a closer look at what current housing predictions have to say about 2023.
Current Housing Market Predictions for 2023
Of course, it is impossible to predict the future exactly, but there are some housing predictions that come pretty close to the real deal. The first thing you might be wondering is if home values are going to start dropping in 2023. The answer is no, it isn’t very likely.
This is good news if you want to sell your home in the near future, but why do current predictions believe that housing prices aren’t going to drop? After all, with the way current inflation rates are going, it seems like the economic bubble could pop at any minute. But as it turns out, the current housing inventory in the United States is very low.
Because there aren’t that many houses available for people to buy, this will naturally keep pushing home prices to be more and more expensive. Again, this will make it difficult for people to buy new and even used houses. However, this is good news for those who are looking to put up their house for sale.
After all, if home prices keep rising, all you have to do is wait a little longer to make a huge profit. This is something that we are already beginning to see among those who have recently sold their houses. For example, after 2008, houses remained very cheap for several years.
During this time, those who were not too badly impacted by the recession were able to buy homes for incredibly cheap prices. Since then, many homeowners have held onto their homes until very recently when home prices started to skyrocket. As a result, many of these homeowners have started to sell their houses and make a huge profit.
What You Need to Know
Of course, not everyone is so lucky to be in this position. But even so, selling your house at this time could be a very good idea as long as you have everything sorted out. As long as the housing inventory remains relatively low, it is unlikely that there will be any sort of crash concerning the price of homes.
Even though there are still homes being built throughout the country, this number is not enough to sway the lack of available houses. Basic economics tells us that if a commodity is in short supply, its price will naturally raise since people want that commodity but aren’t able to get it unless they pay quite a lot for it.
On the other hand, if a commodity is in great supply and very common, its price will decrease because, after all, it is easy to obtain and not anything special. Of course, the economy can never stay in this state forever. Eventually, the prices of homes will start to decrease, but most housing predictions find that this will not happen in 2023.
However, it may occur in subsequent years such as 2024 or 2025.
What About Housing Sales?
Many people like to focus on how much money they can sell their house for rather than any other factors. After all, as long as the housing inventory remains low and the rate of inflation continues, the price of houses will continue to increase. This is true no matter where your house might be in the United States.
Even homes in the middle of nowhere are becoming unusually expensive. This may sound like good news for those who want to sell their homes, right? After all, the more money you can get for your house, the better.
However, selling your house may not be entirely as easy as you might expect. Even though available houses are few and far between for homebuyers, houses have become so expensive that it has also become very difficult for people to actually buy a house.
And, as mentioned before, mortgage prices have also gone up and look to be continuously increasing. This only makes it even more difficult for people to buy a home. For that reason, you may find it a bit difficult to sell your home, especially if you know that it is worth quite a lot of money.
Suppose that you bought your house many years ago for a relatively average and affordable price of around $250,000. Today, your house may be around $800,000 or even more, depending on your location and what kind of house you have. This is something that has happened with most houses all around the country.
What to Know
The problem is that this rate of inflation is mismatched with the average salaries in the United States. Most salaries have not changed that much which obviously makes it difficult or even impossible for people to buy houses that have become so expensive. So, even though you might be excited about how much money you could potentially make by selling your house, you may not even be able to get that money if no one has the funds to buy your house.
Some people might not even be able to afford a mortgage to get their house. Does this mean that you are doomed to be stuck with your house forever or that you have to sell your house at a cheap price? Not necessarily.
Even though the housing market is indeed quite complicated at the moment, this does not mean that you should continue holding onto your house in the hope that the market gets any better. On the contrary, if you hold onto your house for too long, the housing market might finally crash and you might lose out on your home’s value.
The best thing to do is figure out a good way to sell your house for the most amount of money to willing homebuyers. Of course, it may be difficult to find homebuyers who can afford to spend so much money on a house. However, with a bit of marketing and negotiating, you will find that anything is possible.
How to Sell Your House
If you’re ready to part with your house in exchange for a hearty sum of money, you might be wondering where you should start. Of course, you could try selling your house the old-fashioned way. This involves hiring a realtor and ensuring that the realtor handles all the marketing and home listing aspects.
This will allow potential homebuyers to view your house online and maybe even take a virtual tour. But there are many problems with this approach. For one, it can take a very long time.
You might go through dozens of potential homebuyers without a single real buyer. Another problem is that you’ll have to deal with a lot of negotiations on the price of the house as well as a lot of additional and confusing fees. While your realtor will handle most of the complicated paperwork, you’ll still have to do a lot of the heavy lifting.
At the end of the day, you might only end up with a fraction of the money that you wanted to get for your house, especially after realtor fees. A much easier way to go about selling your house is to sell it to a cash buyer. Some people are wary about using cash buyers because they don’t know much about them, but they are just as reputable as any realtor around.
Some argue that cash buyers are even more efficient than realtors. After all, once you find a cash buyer that is willing to buy your house, all you need to do is agree on the price and the whole thing will be over with. You won’t have to wait months and months with the hope that some homebuyer will come along and buy your home.
Instead, if you find a professional cash buyer, you can part with your house as soon as possible. This is ideal for those who want to pack up and move right away or for those who need a lot of money in a short period of time.
All About Housing Market Predictions
Housing market predictions tend to be quite accurate and at the moment, they’re saying that the market will remain more or less as it is in 2023. The prices of homes will likely continue to increase as long as the housing inventory remains low. For that reason, it is a great time to sell your home.
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