Real Estate is a popular topic. Sensational headlines can scare you right out of buying a home. As you consider making a real estate purchase in 2023, keep these five things in mind:
1. The Inventory Problem is Still Here
Through low-interest rates, then interest rate spikes, and softening prices, one thing has not changed in the urban East Bay…low inventory. So while you might see headlines predicting a crash, on the ground we are seeing over bids and still very much a seller’s market.
2. Better Terms
Even though it is a sellers’ market in the East Bay, it is a different kind of seller’s market. While there are multiple offers on move-in properties, buyers are making more offers with contingencies for their financing.
3. There are Deals for the Handy
With buyers reluctant to work on properties, the good deal is in the house that needs work. If the kitchen is ancient and needs to be completely replaced, or the layout makes no sense until you close that wall and move the door over there…this is where your opportunity lies.
4. Rates Will Likely Go Down
As we like to say in Real Estate, you buy the price but rent the rate. No one has a crystal ball but every lender I have spoken to expects rates to go down later this year. You can buy the house now, and refinance later.
5. The Rain is a Great Home Inspector
Buying in a particularly rainy year gives you a good look at how the house will perform in wet years. Buying during the draught meant some surprises could come down the line. Read disclosures carefully and ask how the house performed during our atmospheric rivers.