Our three predictions for the 2023 Twin Cities housing market.
Today, we have three predictions for the Twin Cities real estate market for 2023:
1. There will not be a housing market crash. We also don’t believe there will be major price drops either. This is especially true for sellers that are selling an updated, well-maintained home. In the Twin Cities, we still have a shortage of available housing. However, if some of the listings start aging on the market, buyers will take back some of the power in negotiations. Therefore, you do not want to rush your home to the market. If you want to sell in 2023, you need to start planning now.
2. Interest rates are likely to continue rising. The Fed seems determined to temper inflation, and after a decade of cheap money compounded by the pandemic and supply-chain issues, inflation has reared its ugly head again. However, there are creative solutions for buyers to buy down their rates, as well as other options that could save them thousands of dollars each year in interest.
“You need to be fully prepared before you enter this market.”
3. Appreciation rates will be back to normal by the end of 2023. The market is balanced when there is a four- to six-month supply of homes. This is getting closer, and as the market is becoming more normal, rates will too.
Everyone needs housing, and if it’s time for you to buy or sell a home in 2023, you need to have a comprehensive consultation with an experienced realtor and mortgage broker. You need to know all your options and be fully prepared before you enter this market.
Of course, these are our generalized real estate predictions. We don’t have a crystal ball; anything and everything can happen in real estate. Plus, everyone’s situation is unique. If you have any questions, you can visit our website here or call (952) 222-9000. We look forward to hearing from you.
