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We’re Not Crashing into 2023.

Despite the turmoil of 2022 and the concerns of a real estate market crash in Charleston, S.C. and beyond experts are ringing in 2023 whistling a slightly new tune.

Home Prices in Charleston:

Freddie Mac believes home prices will go down by 0.2% in 2023. And the National Association of Realtors (NAR) thinks price growth will increase slightly by 0.3%.

Whether it’s a rise or a fall in housing prices at those predictions we’re not going to see much change in the housing market here in Charleston, Berkley or Dorchester counties. This is comforting news for those considering selling their homes this year.

Mortgage Rates:

Yes. Mortgage rates are still higher than have been in many years {Still substantially lower than the past averages.*}, BUT the NAR predicts that the rates will peak in 2023 and may even begin to drop back down. If the rates currently make you nervous to buy, holding out through 2023 isn’t going to hurt. Keep an eye on industry changes and rates.

Locking in a mortgage rate with your mortgage lender is a great way to get the guaranteed best rate when you’re searching for a new home. Mortgage rates can fluctuate quickly – this allows home buyers time to search for their home without worrying about an increased rate (in result affecting their budget). Make sure to ask your lender how long your rate is valid for.

Housing Inventory in Charleston:

Since the start of the housing market craziness we’ve talked about the low housing inventory driving the competition in Charleston. Inventory from November 2022 to December 2022 DROPPED 5.7%. Inventory is not increasing. Peak selling season is in the Summer months so we can expect to see a more balanced supply/demand then; however the amount of available homes to the amount of demand in Charleston from home buyers and searchers is still expected to remain skewed. This is more evidence to prove that while prices may even a tad, you’re not going to see a big drop in home prices for the Charleston area like we may see in some other areas.

So, we are not crashing into 2023. If anything this year will be more about the housing market normalizing. Data shows inventory should start to increase, rates should start to decrease. The name of the game this year is going to be ‘slow growth. Good news is whether you are interested in buying a new home in Charleston or selling your current Charleston property the market isn’t totally against you. It’s still a sellers market, but with a good real estate agent and some patience your next Charleston home is somewhere waiting on you.

Ready to start the home buying or selling process? Let’s talk!