Real Estate in 2023: looking back to look forward

by | Jan 19, 2023 | Uncategorized

Last quarter, we talked a lot about how the sands of the market had started to shift under our feet.

But what does it all mean? And how fast are things going to change? Rates are up. Inventory is low. There is a lot to unpack.

I like to start the year with a quick review of historical trends, and I’d like to share two very telling charts with you from the annual report of the Greater Regional Alliance of REALTORS® which aggregates data for the greater Grand Rapids area.
After about a decade of increasing prices, shrinking inventory, and fluctuating transactions, total volume cooled in a big way last year. Which is especially interesting when you sprinkle in the fact that we are experiencing some of the highest inflation in decades.
Even though the sands have started to shift, many large metropolitan areas, like Grand Rapids, are expected to experience a plateau in prices where movement will start to flatten going forward, and fluctuate near current levels for a while. Keep in mind the market looks a lot different than it did in 2008 and 2009. If you are waiting for prices to take a big nosedive, you may be waiting a while.

TAKEAWAYS:

So what do these two charts mean for you? Here are some things to consider as you evaluate your real estate goals for 2023:

Thinking about buying? Mortgage interest rates are up. In some cases, double what they were in early 2022! But this has driven buyers from the market, decreasing your competition. Rates are expected to remain relatively flat in 2023.

Thinking about selling? It is still a good time. Inventory is still very, very low and values may be hitting a bit of a plateau.

If you’d like to talk further or have questions about your particular circumstances, don’t hesitate to reach out to me. Let me know what you think about the “plateau”. Want prices to continue to the Moon? Or are you ready for a major correction?