It’s hard to believe that it’s already 2023! The past few years have been rocky, to say the least, and if you were thinking of selling your house, you might have been a little wary. While things might feel somewhat more stable compared to 2020, they’re not quite back to normal yet. Between inflation and other economic woes, people have been a little bit on the fence about whether or not they should buy or sell their homes. Now that we’re into 2023, things might be a little bit different. Here are some answers if you’re wondering if this year is a good time to sell your house.
Supply Chain Issues Will Still be Prevalent
The COVID-19 pandemic caused plenty of issues with both the economy and supply chains. When businesses across the globe shut down and labor came to a halt, the materials needed to build homes were not produced at the level they needed to be. Unfortunately, production still hasn’t caught up. In addition to a material shortage, many parts of the country have also been experiencing a lack of labor needed to continue the construction of homes. If you do plan on selling your home this year, keep in mind that the supply chain issue will likely impact the supply of houses
Inflation Will Dictate Interest Rates
Inflation has upped the cost of pretty much everything in the country. As a way to hopefully mitigate this, the federal government has increased interest rates on mortgages. At the beginning of the pandemic, rates were at a historical low. Recently, they’ve climbed to well over 7%. If you’re considering selling, note that interest rates could potentially deter people from wanting to buy a home this year. Additionally, if inflation goes down, interest rates will likely follow suit. The timeline of this is unsure.
Home Prices Might Level Out
The costs of homes in pretty much every part of the country have gone up over the past few years in a seemingly drastic way. Buying a home was seemingly unaffordable for many people, especially those who lived in more popular areas. This year, luckily, we might see these prices level out a little bit. Unfortunately, even if prices level out, the rise in interest rates are so high that the potentially lower costs will essentially cancel out.
There Could Be Less Competition
Something else that people have been experiencing during the past several years is high competition among buyers. Having an offer accepted has been challenging for most buyers over the past few years. This is because most of the country has been in a seller’s market, meaning that the supply of houses has been lower than the demand for them. This will still be seen in some parts of the country, but other parts could see some reprieve. Consult your real estate agent on the fastest way to sell a house in a buyer’s market!
Selling your house or not in 2023 is going to depend on a few factors. Note that inflation and the supply chain issue will continue to affect how the real estate market proceeds this year. Hire a real estate agent who has experience in navigating this economy for the best results.