Selling in 2023
Everyone is talking about the changes that will hit the real estate market for 2023. If you follow the news, or social media, you will hear that overall, throughout the nation real estate is shifting into more of a buyer’s market than the seller’s market. What does this mean for you if you are thinking of selling?
There are a few factors that will determine whether we see a shift in the market here in our towns. The good news for sellers in Sterling and Princeton, we still have extremely low inventory. As of today when I am writing this in February, we only have 6 single family houses available in Sterling and 6 in Princeton. Both towns include a couple houses that are not even built yet. So, for me that reduces the inventory that is actually available to 4 houses per town.
So, buyers do not have much to choose from if they want to move to one of our towns. That will continue to keep the house sales price strong this spring.
Another factor we are going to see impacting the market is the interest rates. For every half percent increase in the interest rate, it decreases the amount the buyer can afford by approximately 5%. So, the interest rates will make a difference in the sales this spring. But another rate factor we are seeing is sellers that were able to refinance to a low rate are rethinking selling right now. For some, having an interest rate near 3% makes them nervous about selling and losing that rate. So, some sellers that were planning on selling this year, have decided to stay where they are and keep their low interest rate versus downsizing or upsizing to their next home when they would end up with a 7% rate. This will keep the inventory low if too many sellers decide to stay where they are for a bit longer.
My professional opinion is that the spring market this year will be strong. We may not see the 20-30 offers on properties that we saw last year but I do believe house sales and sale prices will stay strong this year. We don’t have enough inventory to meet the needs of buyers moving into the area. Our northern Worcester County market in Sterling and Princeton is extremely sought after. We are close enough to the highway for easy commuting to Worcester or MetroWest. The commuter rail on the Princeton/Fitchburg
town line is close for people who need to commute into Boston. The Wachusett school district continues to be a sought-after district. And most of the buyers I work with love the picturesque towns with our local small businesses and farms etc. There will always be people who will want to buy regardless of where the interest rate is. The main reasons people buy, having children, job changes, marriages, divorces, etc are still happening even if the federal reserve raises the interest rates again.
So, is now a good time to list? YES! I would love to meet with anyone thinking of selling their home this year to discuss the best way to market and sell your house in the current market conditions. Please feel free to call or text me at 978-407-2568 to set up a time to meet.