How the market has changed recently and how that affects 2023.
Happy New Year! With each new year comes resolutions and reflections on the previous year. The market looks much different than it did one year ago, and it has even made some major shifts since 2022. Today, I’m here with a quick market update so you can have an idea of what is currently going on in the market and what you can expect to see this year.
The market has gone through its share of ups and downs over the past eight months. The change that has affected the market the most is the rapid increase in interest rates. The Federal Reserve is trying to get a handle on inflation, and home prices have been staying steady. So what can you expect in the coming year?
From a national perspective, experts continue to say that buyers will start to see less competition. Rates will hopefully start to go down later this year, if not in early 2024. We will continue to have a lack of inventory, which will allow home prices to hold steady. Lastly, sellers who price their homes correctly will continue to have competition.
“Don’t let rising rates stop you from buying.”
Now let’s take a look at the numbers specific to Omaha. We have around 1,700 active homes on the market, which includes new construction and existing homes. Also, the supply of new-construction homes has gone up exponentially since 2021. In addition, the existing supply of inventory has stayed steady at less than one month supply.
In Omaha, the average home price is around $330,000, which is up nearly 13% year to date. In 2023, you can expect that interest rates will continue to be a big factor in determining what buyers can afford. With this, one thing I like to say is to marry the house and date the rate. This means that you should find a home you love and get it. You can always refinance down the road, so don’t let rising rates stop you from buying.
Houses are sitting on the market a bit longer than we have seen in the past two years, which is giving buyers a bit more negotiation power and the ability to ask for inspections. As for sellers, they will continue to see home prices increase.
To help you understand the market even more, I am going to be following up soon with an email containing the Brian Buffini Real Estate Report, which will give you a ton of great information from a more national perspective. If you or anyone you know is looking to buy, sell, or invest in residential real estate, don’t hesitate to reach out! I would love to help, so call, text, or email me anytime. I look forward to hearing from you!
