As the holidays approach, and we prepare to wrap up another year, forecasters have started to share their predictions for the real estate market in 2023. Here’s what they have to say:
5% – 10% decrease in home values predicted nationally
8.8% decrease in home values predicted for California
Will increase or decrease in relationship to inflation. The Fed has already said they plan to raise rates again when they meet in December which may result in further increases in mortgage rates. It’s important to note that markets responded favorably to news of inflation starting to slow last week and we saw interest rates dip below 7%.
Is a massive problem in California. Only 18% of the states population can afford a median priced home. If you’re priced out of expensive markets like Los Angeles County, consider investing in lower priced areas to build equity with the long- term goal of bringing that cash back to L.A.
Median Price of Existing Family Homes as of September 2022
- Los Angeles County: $840,000
- Riverside County: $600,000
- San Bernardino County: $480,000
- Kern County: $356,000
WHAT DOES THIS MEAN FOR FIRST TIME BUYERS?
The alternative is renting. Unfortunately, rents have been skyrocketing. This year alone we saw 7% increase in rental prices. Looking to rent a 3 bedroom, 2 bathroom home in Long Beach, CA or surrounding? Expect to pay $3,500 – $4,500
WHAT DOES THIS MEAN FOR MOVE UP BUYERS?
You are uniquely positioned to move into the home that is truly right for you. You have record equity in your starter home allowing you to put down a strong downpayment and you have little competition from other buyers allowing you to WIN the home you have your eye on.