Wednesday, January 11, 2023 / by Brian Armstrong
Selling Your Home in 2023 Will Be More Challenging Than Years Prior - Here’s Why!
If you have been in the market to buy or sell a home in the last few months, your experience is drastically different from those who made a purchase just six months ago. For the past two years, uncertainty rattled the real estate industry and created a seller’s market. As we rounded into the new year, market shifts have drastically changed buyer capabilities, and we will discuss what that means for homeowners and how to overcome those challenges in 2023!
The Federal Reserve Hikes
Have you noticed that your shopping bills have been much higher over the last few months? Inflation has steadily risen, affecting the price of everything from milk and bread to assets like vehicles and homes. To combat this aggressive inflationary activity, the Federal Reserve, the central banking system of the United States, has risen national interest rates over the past year. Interest rates and inflation have an inverse relationship, so making an adjustment to the cost of borrowing influences the overall impact of inflation. We are currently seeing interest rates hikes above those found during the 2008 Housing Crisis Recession. While less inflation benefits the everyday consumer looking to stretch their dollars, higher interest rates lower homebuyer power, reducing the number of home sales in the near future.
The real estate market, like the stock market, relies on speculation and supply and demand within the market. Over the last few years, buyers faced low inventory, scooping up properties left and right and creating bidding wars over available properties. Taking a snapshot look at the market now, we see quite a different story. The inventory of homes is rising while the demand for homes across the country falls. Buyers looking to finance a home today have lost significant purchasing power versus those who bought six months to a year ago. Many buyers are holding out to see what will happen before making purchases, and that speculation will affect you as you try to sell your home in 2023. While we do not have a crystal ball to predict the next recession, economic models show buyers are already changing their spending habits to prepare for market disruptions.
Overcoming Seller Challenges
While the market may not favor sellers anymore, there is still plenty of opportunity to sell your home with the proper strategies! If you are trying to sell your home FSBO (For Sale By Owner), you may notice that your leads are running dry, and it doesn’t necessarily mean something is wrong with your home! The market shift has affected many sellers, and without proper marketing or lead-generating strategies, getting your home in front of people still in the market can be challenging. At the end of the day, leads turn into sales, so stay focused on maximizing your overall lead pool! Working with a local real estate agent or team can help you maximize the speed and profitability of your sale, as they know the ins and outs of both buyer and seller markets and can deliver high-quality leads.
Your Home In the Spotlight
As home inventory climbs, your home will face more competition from homes with similar features. Instead of competing with maybe one other home, you may now be competing with ten homes sharing similar sizes, locations, and amenities. Being in the market for over a decade, our team understands what makes buyers jump, and much of it starts with your digital presence! From professional photos of your home to our proven marketing channels, our agents know how to highlight properties to attract serious buyers ready to purchase a home! Our comprehensive marketing strategy showcases your property across hundreds of websites, social media channels, and most importantly, in front of active buyers.
Time is Money
It may be an age-old adage, but it’s still a true statement! Selling your home in 2023 will take a fair amount of time. Gone are the days of quick overnight sales, meaning you will need to invest a good chunk of your time. Luckily, if you work with one of our real estate professionals, you can rest easy knowing we are constantly working to sell your home with minimal time investment from you. From showings to contract negotiations and everything in between, your agent will be there to ease the burden, so you can utilize your time enjoying the things you like to do. You may feel hiring a real estate agent will be a waste of money, but the speed of sale, increased profitability, and minimal time investment from you, all add up quickly!
If you still have questions about selling your home this year or need help getting your home in front of serious buyers, give us a call at (802) 735-2167 or shoot us an email at email@example.com!