Realistic Expectations of the Current 2023 Real Estate Market

Spring has sprung and so has the real estate market! If you’re wondering if it’s a good time to buy or sell, the answer is yes. However, be aware of the changes in the current market. This will help you moving forward. 🌷

What can a Seller expect?

Steady sale prices but stay flexible. Local sellers in Hopkins County (and surrounding counties) have not experienced the significant price drops like other states or areas. Many houses continue to sell close to asking price especially if the seller’s real estate agent did a thorough price research using a Comparative Market Analysis and reviewing it with the seller before putting it on the market. But be prepared to stay flexible and willing to negotiable on pricing and repairs.

Taylor Freitas at Bankrate writes, about Texas’ real estate market, “Demand remains high, and prices are still up year-over-year, despite the decline in the last several months. However, since interest rates are still high, many buyers won’t be able to spend as much on a house — be aware of how much your home is worth, and be mindful when choosing a listing price.”

Maintain realistic timing expectations. Unlike the multiple offer frenzy of 2021 and 2022, things have stabilized and multiple offers are not as common. So your property may sit on the market a little longer than previous years. MetroTex, a professional Dallas-based platform for agents working with buyers and sellers, recently stated that houses in February 2023 stayed on the market approximately 18 days longer than last year.

Go the extra mile. A show-ready home gives you an edge in a more competitive market. Removing clutter, extra pictures on the wall, and keeping a neat-n-tidy yard makes a big difference. Simple items you can do include sprucing up your flower beds, finalizing little projects you’ve been putting off, and not skipping spring cleaning. You can also call a real estate agent  and ask what needs to be done prior to putting it on the market.

What can the Buyer expect?

A much larger pool of available homes today versus in 2022. Regardless of the current interest rate hikes, there are still good reasons why it is a good time to buy. Currently, our inventory at Janet Martin Realty is at an all-time high. Last year and in 2021, a shortage of homes on the market created a domino effect of homeowners not willing to sell because they couldn’t find a place to go which created a surplus of buyers and not enough homes. Hence, part of the reason (though not all the reason) why we saw multiple offers become common place during that time. Compare that to this year, with more available homes, you have more to choose from which in turn means homeowners are willing to sell.

Interest rates are still lower than decades past. Yes, interest rates are higher than what we saw last year. But ask your parents or grandparents what their interest rate was when they purchased their first home. They would’ve been knocking down the bank door to get the rate you can get today. For example my Broker, Janet Martin, remembers getting an interest rate of 18% for her first home. Yes, you read that correct, 18%. But good news—you can buy a house with an interest rate around 7% or 8% then refinance if rates come drop. This way, you can build your own equity in a home versus paying rent.

Negotiating power has returned and increased. With an influx and surplus of properties entering the market in 2023, bidding wars have lost steam. The first part of last year, cash was king and buyers offering above asking price (sometimes, way higher), came out on top. This was created by a housing shortage. But now, according to MetroTex, active listings are up almost 200%. That means double the houses to choose from than last year. This allows buyers to have more negotiation power from the simple fact that they can find another home. Not to mention, some sellers still need to move due to job changes, retirement, or etc. Plus, most sellers understand their need to be flexible on their asking price, willing to complete some repairs, and have their home in a more presentable/show-ready condition. And all of these conditions improve the home and also help you, as a buyer.

At the end of the day, what does this mean to buyers and sellers? Well, our local real estate market is balancing out, even though it may still be a little more favorable to sellers. However, the market is a lot more even-footed. This creates a more level playing field that can benefit both sellers and buyers.

About the Contributor: Kati Adair’s strong work ethic continues to serve her clients both locally and nationally. Her success’ credit goes to her recurring customers and new ones she encounters along the way. She ensures her clients receive the best possible experience when buying or selling. Even though she holds a Master’s degree in Educational Leadership, she continually progresses as a real estate agent, going above and beyond in receiving the nationally recognized Graduate Realtor Institute (GRI) designation. Through the years, Kati has proven to be a top-contender among real estate agents in Hopkins County. She can be found at the multi-million dollar producing office, Janet Martin Realty.