2023 Housing Projections
Posted by Liza Gandis on Monday, December 19, 2022 at 1:42:45 PM
By Liza Gandis / December 19, 2022
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This month's real estate update includes insights from the National Association of REALTORS (NAR) 2023 forecast and the local Charleston housing outlook.
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Are We Headed to Home Prices Crashing?When looking at the fundamentals, the probability of a price crash is small, especially comparing our current housing cycle to the last housing cycle in 2008:
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Additionally, new listings in Charleston are fewer now than this time last year. When there isn't an abundance of supply, the probability of a price crash is very small. Despite the talk of a crash, Charleston's home prices are still up 10% YOY!
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What are Mortgage Rate Projections?Mortgage rates are the life blood of the housing market and we see hopeful signs as the mortgage rate has been falling for the past 5 weeks. While the Fed raised interest rates 0.5 percentage points yesterday (Dec 14th), it didn't impact mortgage rates since they depend largely on the 10-year Treasury. As the 10-year Treasury yield has been falling, mortgage rates have fallen alongside them. Projections for 2023 rates from key players are shown below.
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What's expected for the Charleston housing market?Charleston, SC made NAR's top 10 market list, expecting our housing market to outperform others. The Charleston economy is strong! Boeing's recent order of 100 planes, Project Drift bringing 1,500 jobs, Bosch's $250MM expansion & Stripe Pig Distillery's $10MM expansion are just a few examples of a strong economy.
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What's the Bottom Line?Sellers: Over the past two years, Charleston's home prices climbed. While 2023 home price appreciation is expected to be flat in Charleston (vs. declining), you've likely gained a substantial amount of home equity. New listings remain low, while buyer demand remains high - it continues to be a great time to sell your home!Buyers: Despite the extremely competitive housing market of the past several years, we are seeing negotiations return and sellers more willing to help with closing costs. Lender paid (and seller paid) buy-downs are also a great way to boost your buying power. Let's connect to go over your options. |
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