2023 Spring Market Forecast:
According to the National Association of Realtors (NAR) the Pending home sales improved in December 2022 (up 2.5% from November 2022) for the first time since May of 2022. As I mentioned in an earlier newsletter, May 2022 (Approx.) was the high point last year. Since May of 2022, there has been a (approximately) 7% decrease in home values. The modest rise in contract signings month-over-month was mainly attributed to the mortgage rates trending down, which provided a window of opportunity for some buyers to re-enter the market. The Pending Home Sales Index (PHSI) is a forward-looking indicator of homes sales at the national level and will likely be indicative of the next few months.
The ongoing housing supply challenges will prevent home prices from falling, though price appreciation will slow for 2023 … according to NAR Chief Economist Lawrence Yun.
I’m sticking with my earlier prediction of a 2-5% increase in home values (beginning now, 1-31-2023) for the year ending in December 2023.
There is no other real estate market like Southern California. We have beaches we have mountains we have deserts and for the most part, pretty mild weather. AND… Good Paying Jobs. AND…. We’re still in a housing shortage.
And here’s the caveat; the Federal Reserve Chairman needs to back off on the throttle of raising interest rates. If he (Federal Reserve Chairman Jerome Powell) gets too aggressive with interest rate hikes, he could send us into a recession.
Fun Facts: 1. The first day of Spring is March 20th. 2. To find out when to plant vegetable, go to almanac.com and under the tab calendar…’planting calendar 2023’ and type in your zip code.
If you have any real estate related questions feel free to contact me and FOR SURE if you know of anyone thinking of buying or selling a home, please let me know and I’ll take EXCELLENT CARE of them!
Sincerely
Ron Hier
