How is the 2023 real estate market starting off? And what we can expect in the coming months

By JOSEPH HUDSON

One interesting statistic is that there was a 25% increase in weekly mortgage applications two weeks ago, according to a CNBC story I read recently. Yes, mortgage applications are down from an entire year ago, but they are starting to rebound, as the interest rates have started to soften a little bit over the past few months.

Another interesting statistic I heard is that in the last quarter of 2022, 42% of sellers were giving concessions to buyers at the closing table, a 10-year high, according to an article in Money magazine.

No one has that proverbial crystal ball, but it does seem like I have heard, anecdotally, from many agents that the buyers are starting to come back out into the market. They are realizing that there might be concessions they can get from the seller, they can do the home inspection, and maybe even ask for repairs or credits, and not feel like they must walk blindfolded into the housing market without some sense of confidence.

Sellers are also getting creative with attracting buyers. Some sellers are trying to find lenders that will help the potential buyer find a competitive interest rate or will offer to pay part of the buyer’s cost to buy down the rate for the first few years of the loan. Some sellers are hiring home inspectors, prior to listing their homes on the market, to do an inspection of their home and then doing the needed repairs before it even hits the market, which should provide a cleaner and smoother contract period for the buyer AND the seller.

During 2022, D.C. raised the HPAP (Home Purchase Assistance Program) amounts. Those who qualify to use the program for down payment assistance can get thousands of dollars more for their down payment, and the income limits were raised also, meaning more people qualify to use the program.

As we all know, a lot can change over a year, but Q1 2023 seems like it is starting off with a busier real estate market than the last quarter of 2022. Buyers seem to feel more confident to get back into the market, and many sellers are willing to work with all types of buyers to get their homes under contract, sold, and to move forward with their lives.

If you have any questions about these programs or thoughts about moving into the market in 2023, don’t hesitate to reach out.