What can we expect in the 4th quarter - real estate wise!?

In the last 18 months - we saw interest rates at an all-time low, Sellers were making out like bandits, while buyers, were left fatigued and frustrated. It was a hot market, and we enjoyed every second of it but as we all know, all good things must come to an end, right? But!! Not so fast!

Being in the business for over 30 years - our team has seen it all. We recently sat down with our own Century 21 Award President and CEO (David) - to discuss the market shift. David has a different perspective, as he doesn’t see this shifting market as a bad thing, he believes what we'll see is healthy and perfectly normal for the industry.

Q: What should Buyers expect?

David: They should expect to be in the best position for success since 2020. With a great selection of homes and less competition, Buyers will see favorable conditions in the fourth quarter. Buyers didn’t have the negotiation power they do now. Until recently, the idea of buyers getting their closing costs paid by the seller was never an option. This quarter I believe that changes, setting up Buyers for a much better situation.

Q: Is there anything you have to say to those who feel they missed the boat on interest rates?

David: The simple answer is that’s not true at all. It’s a trade-off because you won’t be in a market with as high of demand, plus the low-interest rates contributed to the soaring home prices we saw earlier. Another thing is that for the first time in years, we’re seeing more homebuyers opting in for adjustable-rate mortgages (ARM). By taking advantage of these adjustable-rate mortgages, Buyers are saving more money in the long run. There are still plenty of options. If you’re planning on being in your home long-term, you cannot go wrong by purchasing today.

Q: What should Sellers expect?

David: Things look different for Sellers, and they should continue to expect this. It’s crucial to note that the housing market predictions for 2023 are going to be rough. If there’s a time to maximize your sale price, it will be in quarter four. After multiple years of double-digit appreciation, we are starting to see prices drop in certain areas.

Q: Anything else you would like to share with Buyers and Sellers?

David: Owning a home is still the best way to build wealth even in turbulent times. Especially when you compare it to the stock market, there’s no better investment than owning property.

There’s your housing market forecast for the 2022 fourth quarter! Both Buyers and Sellers have much to consider!

Cheers,

Joey Leisz

The Leisz Team | 949.573.0143