Insider Intel December | 2023 Forecast, Positive Times Ahead

There is light sooner than later. The trend is your friend:

-Lower than expected inflation numbers
-Stock market is up
-Average day on market remains low
-Homes priced right are selling
-Average sales price is only slightly down

 

2023 Southern California Real Estate Forecast

1. Low inventory to start the year = under
2,900 in OC and 3,500 in SD.

2. The OC inventory will reach a peak of 5,500 homes. That’s 1,500 more than this year, but still off the long term 7,250 home average. The SD inventory will reach a peak of 6,000 homes. That’s 1,200 more than this year, but still off the long term 7,500 home average.

3. During the pandemic, the market time for luxury
homes dropped to historically low levels, less than 2-months. Yet, luxury is normally more sluggish with market times of 6-months or more. Luxury will continue to transition to
normal, longer market times.

4. Closed sales are predicted to be down 6-8%.

5. Home values are expected to drop in 2023; down 6.5%-9% year-over-year.

6. Interest rates are expected to drop in 2023 down to between 4.75%-6.5%

7. STRONG potential for rates to come down to low 5% Summer 2023.

Typically home values rise when inventory is low.
When housing inventory is low and interest rates are high, home values decrease.
As the interest rates go back down as predicted in 2023, home values will return to increasing as they have historically.

 

 

If you’re looking for more information about the real estate performance in many of Southern California’s most in-demand markets, click here to view the Pacific Sotheby’s International Realty IN FOCUS market reports.
Whether you are a first-time home buyer, an interested seller or building your investment portfolio, our reports are your best resource to make smart real estate decisions today.
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