Real Estate Agents get asked more about the future than crystal ball-gazing fortune tellers. No one ever really knows what the future holds, but we sift through clues to see if the past can help us forecast what tomorrow will bring.
My 2023 Predictions
1. The Austin market will return to a more normal market where there are plenty of homes available for sale at any given time, and the average days to sell hovers in the 90-100 day range. There are still plenty of people moving here and the poorly run states continue to come up with idiotic policies that chase people to Texas and Florida.
2. The FED will realize that they have been too aggressive on interest rate hikes and they will start to soften their stance. They have been actively damaging people's real estate values in the pursuit of controlling (government-caused and fed) inflation and people will become more vocal about wanting it to stop.
3. Mortgage Interest Rates will continue to settle and buyers will start to be comfortable purchasing homes even as interest rates remain higher than in 2021. Currently home buyers waiting think rates will fall and home prices will plummet. Once it becomes evident that this is not going to happen, people will act. When the average home buyer wakes up to an improving market the upward trend is months in the making. Don’t wait too long to buy something.
4. More than half of the real estate agents will quit and go back to being baristas and lifeguards. The barriers to entry for a real estate agent are so low that anyone can get a license and create an Instagram with a “Top Producer” slogan. This has always hurt professional agents that are full-time business owners. Every few years a boom produces a glut of part-time agents that take 2-3 deals a year out of the pipeline. Working with these agents is a nightmare and we have needed a correction on agent numbers for quite some time. The exodus will help make professional agents stronger and busier. Expect fewer emails in your inbox from your agent neighbor telling you that “Your referral is the greatest compliment you can give me.” I guess “nice car” doesn’t fly anymore.
Hello 2023
2022 was a tough year all around. This year promises an improving market and more stability. The question is when will that change happen? Anyone know a good fortune teller?
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 Jan 2023: https://www.dsoutlook.com/category/current-issue/