The Bohnker Group
_____________________________________________
Professional Purpose
The Bohnker Group’s professional purpose is to help you, our buyers and sellers, to make the most informed decision on your biggest financial investment. We will educate you on the macro market shifts, inform you of specific hyper-local market trends, and advise on all possible solutions to meet your real estate goals. Your representation matters. We have over 15 years of experience and backing us is the Jameson Sotheby’s International Realty iconic brand that brings nearly 300 years of trust, recognition, and respect. The name alone opens the most prestigious of doors, creating opportunities and connecting affluent sellers and buyers worldwide.
_____________________________________________
As we start the new year, we look back at the 2022 housing market and it was really defined by two key factors: Inflation and Rapidly Rising Mortgage Interest Rates. These two factors have forced a recalibration of the market and an overall reset from the previous two and a half years.
As the Federal Reserve worked to lower inflation, mortgage rates more than doubled, resulting in a massive impact on buyer activity, supply and demand, and home prices. With these major economic and market impacts, many buyers and sellers put their plans on hold, hoping for a more predictable market in the short term.
We all want more stability in the real estate market. For that to happen, we’ll need to see inflation continue to come down, even more than it has, and for the following to happen:
Mortgage Rates 2023:
If inflation is high, mortgage rates will be as well. Inflation likely will continue to come down, and mortgage rates will likely follow suit, we are not out of the woods and it’s something to watch for in 2023.
Home Prices in 2023:
Real estate home prices will always be defined by supply and demand. The more buyers and fewer homes on the market, the more home prices will rise. This sums up the last two and half years of the real estate market. However, we are now at the inflection point and we will see a more normalized market for buyers and sellers to transact in. This is referred to as a Normal and Balanced Market. We’ve seen home prices moderated in the past few months, as buyers demand pulls back due to higher interest rates.
The 2023 housing market will be driven my mortgage interest rates, which will be driven by what happens with inflation. Experts expect interest rates to come down to 5.5%-6% by the end of 2023.
BUYERS:
If you’re thinking or planning to buy a home now or in the next 3-6 months, you should start the real estate and mortgage process today and get your ducks in a row! You want to put yourself in the best possible position so you can be ready to move on a property whenever the opportunity presents itself. It’s never too early to align yourself with a real estate advisor and mortgage lender
1. Real Estate Agent:
Let's connect and refine your MLS property search, visit open houses, browse homes online, etc. Doing these things will not only show you what is out there but will help you to get a better understanding of what you are truly looking for (what are you must have's and nice to have's).
2. Mortgage Lender:
By getting your affairs in line now, you will get a strong handle on your personal finances. It is important to have your documentation and data reviewed by a professional, they'll give you a clear picture of your buying parameters. This will put you in the best position to be ready for an opportunity.
SELLERS:
If you are potentially looking to sell this year, here are three areas of advice:
1. Price Your Home Right
Price your home based on where the market is today (not 6-12 month ago). If you don’t, you’ll do two things: 1) become a comp to help sell competing properties; 2) likely sell for less than you could have initially.
2. Keep Your Emotions in Check
Homeowners are staying in their homes, on average, twice as long as they did 30 years ago (around 10 years today). A side effect to this is a greater emotional connection to the property. It’s just a fact of life, the longer you’re in a home, the more attached you are, and the harder it is to negotiate and separate the emotional value of the house from the fair market value. That’s why you need a real estate advisor to help you through the selling process.
3. Stage Your Home Properly
While you may love the designs and decor you’ve picked for your house, not all buyers will agree with you decisions (that’s just a fact). You need (and must) focus on making the best first impression and appealing to as many buyers as possible. That includes: neutral paint colors, few/no personal photos (they want to envision themselves in the house), and declutter, declutter, declutter to make your home feel more spacious.
2023 will likely see a return back to a balanced and normal marketplace for buyers and sellers to transact in. Each local market has it’s own unique set of market conditions, and you’ll need a trusted advisor to help you navigate it.
Whether you are looking to buy or sell now or in the future, contact us today. We would appreciate the opportunity to have a conversation with you about your goals.