Are you thinking about buying or selling Ben Avon real estate this year? If so, you may want to know more about where the market currently stands and how it could change in the next several months. The market is constantly shifting and evolving, especially after the unique events brought on by the pandemic. Summarized below are insights into the current real estate market and predictions for what might happen during 2023.
What is the real estate market doing now?
The market for Ben Avon homes for sale is slightly competitive. While many homes spend at least one month on the market and sell for a price slightly below listing, some can receive multiple offers and sell for an amount that exceeds the asking price. Overall, home prices are down from where they were one year ago, but this is common in many markets throughout the US given the unique set of challenges that the national market and the economy as a whole are currently facing. While interest rates were significantly lower than average in 2020 and 2021, they began to rise again in 2022. The result is lower demand among buyers and more challenges for homeowners who want to sell their homes.
Do home prices change during the year?
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Yes. In a typical year, home prices will be highest between May and July because the demand is higher. There are a number of reasons buyer activity is strongest in the late spring and early summer. Most people have their tax refunds and are eager to use them to help fund down payments. Families with school-aged children prefer to move at a time when the schools aren’t in session, and moving early in the summer gives them a chance to settle into their new home before classes resume in the fall. The market usually stays active through August, and then cools in September.
By the time October and November arrive, the real estate market is quiet. Although homes do sell throughout the year, sellers often find that there’s less demand as the December holidays get closer, which can cause a price drop.
Will housing prices rise again?
It’s hard to say when the current state of the market could begin to change. Prospective buyers are currently dealing with rampant inflation and a rising cost of living in addition to higher interest rates. It’s hard for many people to consider a home purchase as they work to cut unnecessary costs from their budgets. The Federal Reserve has hinted at the possibility of rates coming down sometime in 2024, but it’s not a guarantee and it probably won’t happen unless the inflation subsides.
How will pricing affect the health of the market?
It’s highly unlikely that the current state of the market produces a significant long-term effect. There’s evidence to suggest that the market is in a better position than what the high interest rates and lower average sale prices might reflect. The third-quarter mortgage delinquency rate in 2022 was the lowest on record. The mortgage delinquency rate is an important statistic that many industry leaders believe tells a greater story about where the market currently stands. A higher rate would suggest that the market is in greater trouble.
Current property owners will also appreciate the reminder that home values have outpaced inflation by nearly three percent over the last 100 years. Despite the occurrence of significant economic trials such as the Great Depression of the 1930s and the housing market crash of 2008, the market has shown a high degree of resilience and an ability to respond to trials while coming out stronger than before.
What is the current foreclosure rate?
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Pennsylvania ranked 23rd out of the 50 states in foreclosures at the end of 2022. Considering that Pennsylvania has the fifth most residents of any state in the union, it’s encouraging to see them with such a low ranking. Out of nearly six million homes in the state, only around 1,000 went into foreclosure. In other words, around one in every 5,400 houses went into foreclosure. The top five counties in Pennsylvania for foreclosures were Delaware, Philadelphia, Berks, Lancaster, and Bucks.
Will 2023 be better for buyers or sellers?
The coming year isn’t expected to be a clear buyer’s or seller’s market. Both will face unique challenges, but both could also benefit from moving ahead with their real estate transactions.
Buyers will have the opportunity to lock in a home for a lower price. Although they will have larger monthly payments because of the higher interest rates, they can begin building equity while maintaining the flexibility to refinance their mortgage later if rates drop.
Sellers still have a chance to make a solid profit on their home thanks to the price increases of recent years. If you want to increase your chances of receiving a higher offer, consider making upgrades in the home to increase your ROI or raise your property value. You may also talk with your real estate agent about the best time of year to put your home on the market if you have some flexibility on your timeline.
Who can help with my real estate transaction?
If you’re ready to buy or sell your Ben Avon real estate, contact Robyn Jones. As one of the top performing real estate agents in the area, Robyn enjoys the connections that she makes with her clients and takes great pride in helping each person find their dream home. She’ll ensure a smooth and successful transaction.
*Header photo courtesy of Shutterstock
*Header photo courtesy of Shutterstock
