Original Content By Carl Johnson
Real Estate 2023: Trends That Are Coming and Going
The Triangle Business Journal reports in their January 01, 2023 article “4 predictions for the 2023 real estate market in the Triangle” that the Raleigh-Durham area ranked high on a list of growing metropolitan areas. With as many as 5,000 new residents a month, the Triangle is a hot market for buyers and seller.
What other trends are hot or not?
Prices Will Continue to Rise
According to the National Association of REALTORS®, the demand for homes has grown substantially in the past two years, and the increased demand has resulted in higher prices. The median price for homes in the United States has increased by nearly 15 percent in the past year. Locally, in the Triangle region the median sales price increased by nearly 9%. Most real estate professionals agree that this is a trend sticking around. Predictions are that 2023 will be a great time for real estate sellers.
The National Association of REALTORS® survey of home prices for 2022 shows that for recently sold homes, the final sales price was on average 99% of the final listing price. That is if sellers used a reputable real estate agent. Sellers across the US who sold without the help of a real estate professionals sold their homes signiﬁcantly lower ($218,000) than the average agent-assisted homes ($242,000).
20% as a Down Payment
One trend clearly on its way out is the 20% down payment on your new home, says the NAR.. With prices climbing, the reality of having 20% in liquid cash is not the expectation anymore. The majority of recent buyers who ﬁnanced their home purchase typically ﬁnanced 88%. First-time buyers typically ﬁnanced as much as 93% of their home. For more than half of all buyers the down payment came from their savings. Others secured their down payment by selling their previous home.
While some prospective home buyers shy away from increased monthly mortgage payments in these uncertain economic times, buyers in the luxury market are less sensitive to these fluctuations, but affordability and property size are on wealthy buyer’s minds just as much as other consumers.
As the Triangle Business Journal reports, Apple executives and employees have flocked to Raleigh, North Hills and Wake Forest, making Raleigh a key luxury market and likely keeping it so in 2023.
Cash transactions are expected to continue increasing. All-cash sales comprised 26% of transactions in November 2022, up from 24% a year earlier, according to recent NAR data. Besides cash, wealthy buyers are using margin or stock portfolio loans and private bank loans, the report says.
In the past, buyer and sellers found homes for sale in their area of choice with the help of family and friends and print media. These days, most people looking to buy or sell start their search online. The National Association of REALTORS® revealed that in 2022 nearly half of all recent buyers looked at properties for sale online first, while only 18% of buyers ﬁrst contacted a real estate agent.
This isn’t a trend going away any time soon. Homebuyers find that online listings feature more details than ever before. Attention-grabbing online property listings may have virtual staging, 3D tours and drone videos.
But buyers aren’t the only ones looking to technology. Sellers who sold after the pandemic were more likely to use digital marketing tools. Virtual 3Dtours, for example, went up from 16% to 27% just last year. What this means for you as a seller is that working with a knowledgeable, tech savvy real estate agent is important as online property listing websites and their tools will only become more sophisticated.
At Carl Johnson Real Estate, we excel at digital marketing. Carl Johnson created his own Real Estate Marketing Agency, 4RE Marketing, to keep abreast of marketing technology and ensure our listings are set in a place of strength in any given market. We routinely work with staging and virtual tour partners to always showcase each home’s unique features.
Overall, the housing market is poised to shift in 2023. High mortgage rates, population growth, changing economic times and inventory levels will all influence the real estate market in the coming year. One thing is certain, though. As the market continues to evolve, buyers and sellers can benefit by leaning on the help of an experienced real estate agent.
If you’re looking for a top-performing agent, Carl of Carl Johnson Real Estate, is the Triangle region’s leading professional. He knows your communities and the buying market. With his guidance, expertise, and tech savvy on your side, you’ll have what you need to navigate the 2023 market with confidence.
With the right price, the right marketing, and the right agent that puts YOU first…your home might be our next sold listing. At Carl Johnson Real Estate, our direct and intentional approach is customized to each seller or buyer client.
Call today to learn more 919-880-0904