This year saw the Real Estate Market go from Mt Everest highs to then avalanche over the course of 2 weeks into the largest about-face since 2007. In early 2022 every economist was saying that any correction would be a pillow soft landing. They could not have been more wrong. Below are the major takeaways you need to know as we head into 2023.
No real estate surge will ever last forever.
It was starting to seem like there was no top to the market as each sale just leapfrogged the previous one in pricing. Large companies bet billions of dollars that the market would never fade. Now those companies are shuttering and laying off thousands of people because a declining market cannot support businesses founded on the premise that real estate prices would rise forever.
You cannot time the market.
Relying on new reports and economists to predict the top of the market is folly. It can be gone faster than you can say “Who wants to buy my house?”. Buy or sell when you can afford the payment or need to move. You’ll never be able to predict the entirely unpredictable.
It’s a better time to buy now than it was in late 2021.
If you buy now, you can have your pick of homes, get a decent price, and negotiate some repairs. Twelve months ago, you would have paid $200K over asking, on a home you didn’t really like, and the seller’s agent would have laughed at you if you wanted something repaired prior to closing. Now buyers feel like kings and queens again. Yes, interest rates are higher, but you can buy your dream home now and refinance when rates decline.
Real Estate is still one of the best paths to wealth creation.
With inflation at record highs, real estate has been the most stable place to park your money. If you are sitting on cash, it is worth less and less every day as inflation erodes its buying power. You make money on real estate when you buy it. If you never buy anything you never make anything. Many homeowners still have massive equity accumulated even after the decline. Home prices are currently at late 2021 levels. Anyone who bought before 2019 has seen massive wealth accumulation.
2022 was as crazy as a Saturday night on 6th Street and 2023 promises more of the same. There are valuable lessons learned this year and the people who learn them will ride high into the next market surge.
Trying to predict and time the real estate market can be challenging, especially these days. Don’t try to take to that road alone. Hire an expert to help you navigate this changing and explosive market. Dripping Springs Elite is NOT a brokerage. It is a professional organization comprised of top real estate agents in the area from different brokerages who collaborate and work together to make buying and selling in their town the best it can be for their clients. DS Elite is also dedicated to building up our community and its nonprofits to strengthen the quality of life for all residents. Contact one of our agents today https://drippingspringselite.com/#agents.
Article created for DS Outlook Dec 2022: https://www.dsoutlook.com/category/current-issue/