The market for Adams Morgan real estate is constantly changing and evolving. Unless you study the market regularly, you might feel like you can’t keep up. The best way to ensure you’re prepared to buy or sell a home regardless of what the market is doing is to partner with an experienced local real estate agent. Even if you partner with a knowledgeable realtor, you may still want to have a basic knowledge of what the market is doing. This article will bring you up to speed and share some predictions for the upcoming year.
1. The housing market is experiencing a slight downturn
Home prices have fallen slightly in the Washington, DC, area over the course of the past year. This may come as a surprise to buyers and sellers who have grown accustomed to a competitive market where homes often sell for a price well above asking. This has been common over the past few years, especially during times when interest rates were low. Many people acted fast to take advantage of securing a loan with a lower monthly payment. Times have changed, and interest rates are now much higher than typical averages. Combine this factor with rampant inflation and general uncertainty about where the economy might be headed in the next few months, and you can understand why the demand for buying homes is lower right now.
2. The recession isn’t expected to be significant
The likelihood of a recession always creates concern and anxiety. The encouraging news is that most experts don’t anticipate the recession will be significant. There are factors in play that suggest the housing market is still in a strong position. One key piece of evidence is the current mortgage delinquency rate. Most industry leaders believe that the mortgage interest rate reveals a great deal of information about where the market currently stands. A higher mortgage delinquency rate would imply a more uncertain future and would be a cause for greater concern. Currently, the mortgage delinquency rate is as low as it has been at any time over the past 25 years. This is a positive sign for the Adams Morgan real estate market.
3. The market rises and falls throughout the year
Part of the reason why the market is currently down has to do with the season itself. Things usually slow down during October and November. Summertime
is often a more prosperous time for the housing market. Things begin to pick up in April and May as individuals start to receive their tax refunds. Families with children also prefer to move during a time when they aren’t busy driving kids to school and extracurricular activities. The market stays active through August and begins to trail off in September. Don’t be surprised if you see an uptick in the market during the second quarter, and don’t panic if things begin to slow down as the temperatures drop in the fall.
4. Sellers can still make a strong profit
Potential sellers may be disappointed to learn about a recession and a stall in price increases. This doesn’t mean that prices are going to drop significantly. In all likelihood, prices will remain substantially higher than they were a few short years ago. This means sellers will stay in a strong position if they decide it’s time to bring their home onto the market.
5. Waiting to buy is risky
Perhaps you’re interested in buying a home, but you would rather wait for interest rates to drop before you make a purchase. This is a dangerous game for several reasons. It’s likely that buyer demand will increase once rates drop again, so you’ll face strong competition when you decide to test the market. You also can’t predict when interest rates might begin to fall. Nobody knows for sure when this will happen. The longer you wait to buy a home, the longer you’ll have to wait to begin building equity in a home. You’ll also need to think about where you’ll live in the meantime. If you don’t currently own a home, you’ll have to find a place to rent, and rent prices are higher than average
across the nation. Many people find that renting is a more expensive option than buying.
6. The decision to buy or sell in 2023 depends on you
Some people will hear all of this information and decide that 2023 isn’t the best year to test the market. While 2023 will undoubtedly present challenges for both buyers and sellers, this doesn’t mean it’s a bad time to buy or sell. Ultimately, the decision of what to do in 2023 largely depends on your own financial situation. Whether you’re a first-time buyer or looking to sell their existing home and buy a new one, you’ll need to understand how your financial position affects your ability to buy.
A good place to start is to reach out to a lender and discuss what sort of loan you qualify for. This is especially important if you’re thinking about buying a new home before you sell your existing home. If you have a home that you would like to sell, you can ask your realtor to run a CMA, or Comparative Market Analysis, for you. This report will give you a better idea of how you could price your home based on what other homes in your area have sold for in recent months.
7. You can ask for help
Amalia Morales Garicoits
studies the market on a daily basis. This helps her educate her clients and anticipate challenges before they happen. Amalia works hard to ensure that her clients feel valued and respected. She takes great joy in helping her clients navigate through a constantly changing real estate market. Reach out to Amalia if you’re looking for an experienced and trustworthy real estate agent to guide you through the buying or selling process. She would be more than happy to assist you.