Are we returning to a ‘normal’ real estate market in 2023?
2023 – A ‘Normal’ Real Estate Market – Economists are speculating a wide range of performance estimates for the US real estate market in 2023 – varying levels of pricing, mortgage interest rates, and numbers of properties sold. Let’s be honest; we are in uncharted territory with the number of things going on in the US and the world right now, so economists are doing their best to look at historical data and the number of factors at play with current world politics, including current inflation numbers, to make economic predictions.
The Triangle Real Estate Market
I’m most interested in the North Carolina residential real estate market, specifically central North Carolina, known as The Triangle.
Triangle Area NC data and local predictions indicate that we are still going to have a shortage of properties for sale in 2023 and that the average time on the market is going to increase. Of course, it has to increase, given that houses sold so quickly in 2021 and early 2022. iBuyers are struggling to find their footing in this market, and builders are trying to figure out how much demand there will be to buy new homes.
New Construction in 2023
New Construction builders have been continuing with plans to develop land purchased in the last 2-3 years, and there are no indications that builders will delay starting new communities. Building in all areas is booming, including hot suburbs like Chatham County, Sanford in Lee County, Mebane in Alamance County, and Fuquay Varina in Harnett County.
Local Job Market
RTP’s Job Market is expected to stay strong, with just a few exceptions, most notable tech. Some national companies have announced they plan workforce reductions in 2023, but there haven’t been many layoff announcements that affect employees based out of the Raleigh or Durham area. Apple and Google are moving forward with plans to expand their presence in NC. As stated by Dr. Ann York, Meredith College economist and program director, in December 2022, “North Carolina’s labor market will manage the Fed’s actions better than most states…we have a diversified economy, so any job losses in one sector could be offset with job gains in another sector. I anticipate only slower growth and not a turn toward recession.”
Residential Real Estate
The residential real estate market in Durham, Raleigh, Cary, Morrisville, and Chapel Hill is not going to have a decrease in home prices in 2023 from last year, but buyers and sellers should expect a slower rate of price appreciation, and sellers should expect to get the highest price for their home. It is going to need to be updated and in good condition. Gone are the days of listing a house with an older roof, heating and air, and old decor and having it sell in a few days. In that respect, the Triangle real estate market is returning to normal.
If you are interested in discussing the real estate market here in the Triangle, whether you are a buyer or a seller, just let me know. You can text me, call me (919-818-5001), or chat with me on social media, whatever works for you. Find Amy’s contact information here. Visit our Facebook page here https://www.facebook.com/AmyShairRealEstate