If you’re considering buying a home in the near future, you might be wondering what to expect from the real estate market in 2023.
Despite higher mortgage rates and a continuing inventory shortage, the 2023 real estate market has some signs of encouragement for buyers. The frantic struggle of the past few years is settling down, property prices are stabilizing, and houses, townhouses, and condos are staying on the market a little longer.
Foreclosures could rise as homeowners struggle to afford their mortgages or sell their properties. This could create opportunities for homebuyers. However, the rising cost of living, stagnant wages, and tighter restrictions on financing may make it more difficult to qualify for a home loan.
You’ll Need a Top Real Estate Agent
In an evolving market, it’s advisable to have an experienced, reliable, knowledgeable, and reputable professional to work with. Such a real estate agent can help you make a sound decision, complete all the necessary paperwork, and prepare for different obligations and scenarios.
Finding an ideal agent may be challenging unless you look on the only marketplace where agent track records are verified, and realtors compete for a homebuyer’s business. Nobul offers real estate buyers and sellers a look at realtor histories, reviews, and commissions.
In a conversation with BNN Bloomberg, Nobul CEO Regan McGee shared how his marketplace empowers homebuyers and sellers.
He explained, “You put in basic pieces of information. Agents then compete for your listing. So, they’ll give you their proposal where it outlines exactly what they’re including [and] what they’re excluding. What their track record is. Reviews from people who have actually used them — think verified Amazon buyer ratings or eBay ratings.”
Nobul’s disruptive real estate formula has led to significant growth across North America. As homebuyers try to match with reliable agents in 2023, expect the platform’s popularity to rise further.
Lower Home Prices Don’t Necessarily Translate to More Affordability
The housing market is cooling.
For example, after years of steady price increases, Canada’s housing market has seen a significant slowdown in sales and prices over the past year. In fact, according to the Teranet–National Bank House Price Index, the national average price of a home decreased by 1% in January 2023 compared to December 2022.
Now that the Bank of Canada has increased rates steadily — with additional rate hikes likely still to come — we’ve seen an adjustment in the number of homes for sale, and the average sales growth has slowed. Experts are now predicting steeper price declines in early 2023 than they did originally.
While prices may drop, that doesn’t necessarily mean they’ll be more affordable — buyers will deal with higher mortgage rates.
More Negotiating Room
Expect buyers to have more negotiating room in 2023 with sellers who must sell their properties. For example, sellers may pay some of a buyer’s closing costs as an incentive. And unlike the desperate bidding wars of 2020, buyers are less likely to give up on home inspections in 2023.
Although the market will be friendlier to buyers in 2023, they should still cover their bases. This means finding a top verified realtor, getting finances in order, and studying mortgage options carefully before signing the dotted line.