That’s a wrap on 2022
This newsletter is going to be a little bit different because it’s our last one of the year. And wow, what a year it’s been! We started this newsletter in January, and there are already more than 15,000 of you that check in with us each week.
The Blueprint started with the simple idea that people needed a reliable source for news and information, but it has grown into so much more than that. We feel like we have created a community of people who share our passion for this industry. We love reading every email you send us, from your door-knocking stories to questions about our day-to-day. We’re excited to keep growing The Blueprint community next year and to continue sharing our advice on important topics like lead generation, motivating your team, and so much more.
For our final newsletter, we decided to round up the major market predictions for 2023 and share our takes. So, sit back, read this over a nice warm cup of coffee, and we will see you again on Friday, January 6th!
– James & David
Top 10 big predictions for 2023
Source: Unsplash
We won’t see rates in the 3% range, but rates should dip comfortably under 7% and give buyers some much-needed breathing room.
2. Affordability will remain an issue (CAR/USA Today/Windermere)
Despite home price growth slowing in 2023, affordability will remain an issue because this slowdown isn’t enough to offset the insufficient supply of homes we need on them.
Even though affordability will still be an issue, very few owners will be underwater in their mortgages and in danger of foreclosure because home values have appreciated so much recently.
The rental market will remain strong, and rentals will drive new home starts as builders cool on single-family homes in a slower market.
5. Housing inventory will remain low (USA Today/Redfin)
A lot of sellers want to hang on to the ultra-low mortgage rates they locked in, so they’re holding off on listing their homes, keeping housing inventory low.
Unlike past economic downturns where housing inventory piled up, 2023 will see a decline in home sales due to high interest rates.
7. The Midwest and Northeast regions remain strong (Zillow/Redfin/Bright MLS)
Housing markets in the Midwest and Northeast metros will hold up despite a cooling housing market because they are more affordable and more stable than the markets that heated up during the pandemic buying boom.
8. California markets will be more at-risk (Bright MLS/Zillow/CAR)
Coastal California markets and Sun Belt metros will be at the highest risk of home price decline in 2023.
With the exception of California and Sun Belt metros, the nationwide trend for home prices will be to level out, with only minimal increases to average home prices.
10. This isn’t 2008, and there is no housing bubble (Windermere/Bright MLS)
The market looks totally different today than it did in 2008, and lending practices have changed the game. 2023 won’t bring a housing crisis like the nation saw 15 years ago.
Our take
These predictions are solid for 2023. We have been saying for a while that 2023 won't be a repeat of the 2008 housing bubble, and this forecast shows exactly that. Next year will be a great year for both buyers and sellers as the markets become more balanced and interest rates fall below 7%. As agents, it's up to us to help hesitant buyers and sellers navigate the new, more balanced market during a mild recession. Sellers are going to have to be realistic, and buyers will have to realize that they can’t write a lowball offer and expect a deal.
2023 is going to present an amazing opportunity for newer and more seasoned agents to level up in their careers! Do your homework, come prepared to listing appointments, and get creative to show potential clients why they should trust you with buying or selling their biggest asset!
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10 priciest home sales of 2022
Source: realtor.com
10 priciest home sales of 2022
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$173M: Manalapan, FL
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$141M: Los Angeles, CA
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$119.9M: Los Angeles, CA
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$106.9M: Coconut Grove, FL
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$101M: New York, NY
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$100M: Malibu, CA
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$84.5M: East Hampton, NY
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$78M: Coral Gables, FL
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$75.9M: New York, NY
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$75M: Beverly Hills, CA
Check out Bloomberg’s list of 2022’s priciest home sales for a peek at these amazing homes and all of their sales details.
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We'll be back on Friday, January 6th, with our regular newsletter with all of the top stories, industry insights, and career-growing tips you need to make 2023 your best year yet.
We also wanted to remind you that we’ve created our own custom real estate toolkit, covering all the most important topics that helped us sell over $3,000,000,000 of real estate. It's packed with all the tips and tricks you need to beat your sales goals for 2023!
All you have to do is refer one person to The Blueprint using your unique share link (above) and we'll deliver the toolkit straight to your inbox!
Two quicks things:
1) If you’d like to partner with The Blueprint or James & David, fill out this form and we will be in touch in the new year.
2) We have 16 great episodes of Rise Above The Ranks that are made to get you ahead of the game for 2023. You can listen on Apple, Spotify, or YouTube.
We want to say how thankful we are for our readers and the community of amazing agents we have here. We know 2023 is going to be amazing, and there is so much in store. We can’t wait to share it all with you!
– James & David
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