WASHINGTON DC REAL ESTATE MARKET FORECAST 2023
The past few years have been interesting for both the local and national real estate market. Things are constantly changing and evolving, and unless you’re studying the market on a daily basis, it can feel challenging to keep up with everything. This article will bring you up to speed on what’s been happening lately, while also making some predictions for what 2023 could have in store for anyone who chooses to buy or sell Washington, DC luxury homes.
1. WHAT’S THE MARKET DOING RIGHT NOW?
While high interest rates and economic uncertainty are preventing some buyers from hitting the market, average home prices continue to rise. Over the past few years, interest rates hit staggering lows as the national economy sought to respond to the onset of the COVID-19 pandemic. This led to many prospective buyers shopping for homes, and sellers took advantage of a hot market that often resulted in multiple offers above the asking price. Home prices aren’t rising at the same rate anymore, but most homes still sell for a price close to asking, and some homes even receive multiple offers. Price drops are uncommon, but not unheard of, in the current market climate. Most homes spend around one month on the market, but some homes will sell within two weeks after the listing becomes public.
2. WILL 2023 BE PRETTY SIMILAR?
Most experts predict a slight national recession will happen in 2023. They cite rising interest rates and rampant inflation as two reasons why home prices may not rise much–if at all–in the following year. This isn’t the best news for sellers, and it presents challenges for buyers as well. Because of higher interest rates, buyers may still pay more for a home in 2023 than they would pay if they bought it right now, even if the asking prices on homes are similar to what they are today. That being said, most people don’t anticipate the market stall resembling anything close to the complete market crash that happened in 2008.
3. WHY WOULD PEOPLE MOVE TO WASHINGTON, DC?
In addition to being the center of the national government, Washington DC has a thriving job market and plenty of excellent dining and shopping options. Sports fans always have something to cheer about, whether they are heading out to Nationals Park to cheer for MLB’s Nationals or tailgating near FedEx Field before a Washington Commanders football game. The population of Washington DC was over 700,000 at the last census and has grown steadily for the past several years.
4. WHEN’S THE BEST TIME OF YEAR TO SELL A HOME?
If you’re planning to sell your home next year, try to have your listing ready to go public before the end of April. Many people will shop for homes during May and June, and sellers tend to make better profits during these months. This is the time of year when many people have their tax returns in hand, and when families can move their children without taking them out of school.
5. WHEN’S THE BEST TIME OF YEAR TO BUY A HOME?
The market is hot during the summer but cools off during the fall. Homes will still sell during October and November, but not at the same rate as they do during the summer. Sellers may have to experiment with price drops or creative marketing strategies to generate a similar level of interest in their property. As a buyer, you’ll likely experience less competition when you shop for a home during this time, and you may have more space to negotiate with the seller to get a better deal.
6. WILL 2023 BE A GOOD YEAR TO BUY A HOME?
Since home prices aren’t expected to rise much next year, this could be an excellent time for anyone looking to buy. Keep in mind that interest rates should continue to rise, so it doesn’t benefit you to wait too long to make a purchase. If you’re thinking about buying in the near future, a good first step is to speak with a lender about what sort of loan you might qualify for. Your lender will ask questions about your credit score and debt-to-income ratio to determine what sort of loan they can pre-approve you for.
7. WILL 2023 BE A GOOD YEAR TO SELL A HOME?
While home prices won’t rise much in 2023, they aren’t expected to fall too far, so sellers can still expect a good return if they choose to list their home in 2023. If you’re thinking about selling, you should see if your realtor will put together a CMA, or a Comparative Market Analysis, for your home. This will give you a better idea of where you could price your home based on current market trends. If you have a few months before you’ll take your listing public, you can use the extra time to perform a few small renovations or upgrades to your home that will boost your ROI and help your home stand out on the market. If you’re not sure what to do, you can look at other houses for sale in Washington, DC, currently on the market in the price range where you’ll be listing to see what aspects or features stand out.
8. WHO CAN HELP ME BUY OR SELL MY HOME?
If you decide that 2023 is the year when you want to buy or sell a home, you can trust someone with The Centurion Group to handle your transaction. Each of their agents has a vast knowledge of the local market and a diverse professional background that equips them to effectively serve each of their clients. They use state-of-the-art technology to help them creatively market homes and analyze current trends and data. They would love to partner with you throughout the entire process of searching for houses for sale in Washington, DC.
