2022 has presented a new set of challenges for real estate investors, and it’s difficult to predict what 2023 could have in store. However, with recent trends and expert predictions, you can imagine what the coming year might have in store for both buyers and sellers. In this article, you’ll get a glimpse into what’s currently happening with the Danville real estate market. You’ll also be able to make an educated guess about what will happen over the next several months based on where things seem to be headed.
1. What’s the market doing right now?
In such a market, it’s not uncommon for homes to receive multiple offers with waived contingencies. Even with greater inventory, most homes will spend less than one month on the market, and if a property is in high demand, it can go under contract in as little as one week.
That said, most homes sell for about the same price as asking (October 2022 saw a difference of less than 1% between the list price and sale price, on average). Some sellers will reduce their asking price before their home goes under contract. Because inventory has rebounded from 2021, there are opportunities for buyers to sneak in and win the day when it comes to shopping for Danville real estate.
2. How does the Danville market compare to the national housing market?
All of these factors contribute to a market headed toward a recession in the near future, and experts think we’ll likely see a stall in price increases during the second quarter of next year. Even with the expected downturn, it’s unlikely that 2023 will see a major market crash similar to what many people experienced in 2008.
3. Are there certain times of the year when the market is hotter?
For buyers, October or December are the best months to shop. By this time, the market slows down from where it was over the summer. Many people are busy driving kids around to extracurricular activities or planning for end-of-year projects and celebrations. This doesn’t leave too much additional time to shop for homes, and it causes sellers to wonder if they should drop their asking prices or be more flexible in negotiations to sell. Houses will still sell during this time, but buyers can usually negotiate lower asking prices or more favorable deals.
4. Is this the right time to test the market?
While it’s essential to consider what the market is doing and whether this impacts you, it’s equally important to consider your unique financial position. If you’re considering buying a home in the next few months, do you have enough cash to fund a down payment? Are you willing to take out a loan at a higher interest rate?
As you consider your next steps, you should consult a lender about what loan you could pre-qualify for. Keep in mind that different lenders offer different interest rates, and it’s wise to shop around and see who can give you the best deal. If you’re considering selling in 2023, you can begin the process by speaking with a realtor about getting a CMA, or comparative market analysis, on your home. This report will give you an idea of what similar homes in your area have sold for in recent months, and you can use this information to think about where you might price your home.
You may also look online at other homes for sale, especially in the price range where you’ll be listing your home. This can give you an idea of what renovations or upgrades may be necessary before you list your home so that you aren’t at a competitive disadvantage compared to other properties on the market.
5. Who can help me with my upcoming sale or purchase?
*Header photo courtesy of Shutterstock