It is finally the New Year, and many of us were glad to close the door on 2022 as it sneaked in quite a few surprises.

 

Williamson County saw home prices continue to increase in 2022. Still, in June, when interest rates suddenly spiked, the market responded quickly and profoundly as home buyers were reluctant or unable to move forward with purchases. Sellers responded by postponing their planned moves as well.

So, with that news, what is up for 2023?
Dr. Lawrence Yun, Chief Economist of the National Association of REALTORS®, has predicted that mortgage rates have peaked, and there will be a few more Fed increases, but those are already built into rates, so we should see a downward trend. With interest rates ending over seven percent in 2022, he expects the thirty-year fixed mortgage rate to settle at five point seven percent as the Fed slows the pace of rate hikes to control inflation. In terms of the economic fundamentals, remember, there are virtually no sub-prime mortgages today compared with years ago. Mortgage delinquencies are low, and Dr. Yun predicts foreclosure rates will remain at historically low levels in 2023, comprising less than one percent of all mortgages. 

 

So, where do we go from here? In our region, where there is strong growth in the jobs sector with new national companies relocating to our area, there is hope. Pay less attention to the news in the year’s first quarter as the news cycle will pick up year-over-year comparisons, which may be grim. But remember – that was then – this is now. 

So, my advice? Take a look at your current home, thinking about how you can make small, gradual improvements to increase the value. Follow the latest trends in interior paint colors, flooring choices, lighting and appliances.

 

As for buyers, buy when it’s the right time for you. Look at your lease. Could you make a house payment with what you are paying in rent? Investing in a home may be a very smart move for you. With home appreciation at an all-time high, it might be time for a discussion with your trusted advisors. 

 

There are thousands of dedicated REALTORS® in this market who will be by your side, equipped with the latest tools, knowledge and expertise to make home buying or selling a successful experience. Best wishes for a great year! 

 

For more insights, visit wcartn.org.