It’s that time of year when real estate experts pull out their crystal balls and make some new year predictions. Good thing California Listings has the best of the best right here to offer their sage wisdom and advice!
Check out where our expert agents believe the housing market is headed in 2023—and take in some brilliant advice for buyers and sellers in the new year.
“I believe buyers will start to get more comfortable with interest rates where they are in the high 4-7 percent range (depending on the buyer and relationship). Those who held off when rates were in the 4s because that seemed high will continue to kick themselves, so now is the time to jump in. Those who sat out waiting for steep drops and recession will realize if that happens, they can refinance. I anticipate Q1 will see a bunch of those buyers hopping back into the fray.
Buyers and sellers will also get more creative with financing: Sellers will continue to credit to buy points for buyers; Buyers will continue to entertain shorter term adjustable loans and things like 2-1 buy downs. They will understand that lower payments to get into a place now still makes more sense than renting indefinitely
Inventory will remain low, but if interest rates continue to tick down, we will see more buyers vying for that continued limited inventory. This will keep prices on the whole level-to-increasing by end of next year.
We will see continued interest and development/sales growth in neighborhoods further out from central L.A. as rates price people out of the more expensive/staid neighborhoods. Northern parts of the San Fernando Valley (e.g. Winnetka, Reseda), East LA (Boyle Heights, City Terrace) and San Gabriel Valley (e.g. Altadena, Monterey Heights, El Sereno) continue to be relatively affordable and will grow.” —Sean Galligan, Hollywood expert
“Next year’s housing market remains uncertain, heavily depending on interest rates and financing options for buyers. In this challenging market, if you need to sell, now would be the perfect time because the signs are there that it’ll get more challenging in the next couple of years. I would recommend homeowners wanting to sell do the following: Detail and prepare your home as if you were selling your car.” —Jerry Armen, Glendale expert