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SPRING MARKET 2023 OUTLOOK

Date: March 22, 2023 | Author: Anat Eisenberg

You are here: Bergen County Homes » Blog » SPRING MARKET 2023 OUTLOOK

Spring Market Outlook

We are seeing the return of bidding wars and busy open houses, suggesting that after a slow second half of 2022 and early 2023, the market is turning a corner.

The slowing market of 2022 and rising mortgage rates sapped demand for new loans. Suddenly, after two years of intense competition and endless bidding wars, both homebuyers and sellers seemed to take a step back.

The slowdown continued for most of 2022. And that trained all eyes on this spring, which officially began Monday. After all, spring is when seasonality typically ignites the housing market after a long winter slumber. So, many wondered, would that happen this year? Or would the doldrums of 2022 extend into the spring of 2023?

Already there have been positive signs about this spring. A report from the National Association of Realtors this week shows that existing home sales jumped 14.5 percent from January to February, reversing a year-long trend of decline.

Bidding wars are back.

Our market started to see an uptick in multiple offer situations about a month ago. They continue stronger than ever. Buyers are willing to compete for what little inventory they can find.

Buyers need to know what they’re facing. Some don’t want to be involved in bidding wars and some don’t mind it, as long as it gives them a chance to get the home. You need to know what their preference is, so you can act quickly.

Open houses are in again.

In addition to an uptick in bidding wars, open houses — including those that happened in recent days — have become busier as the winter waned and the spring took hold.
Everyone seems happier as the weather warmed and the open house lines are back!.

Supply remains a challenge.

Unsurprisingly, with more demand comes more pressure on supply, and everyone complains about the lack of inventory. It’s been a perennial problem since the onset of the COVID-19 pandemic and it remains an issue.

New inventory and quality inventory continue to be a challenge in our area and across the nation. Unfortunately, high mortgage rates are keeping sellers on the “bench”. They have nowhere to go.

We are lacking a crucial layer of sellers. Those who wish to downsize cannot do so. Empty nesters cannot afford a smaller home, as it now costs more than their current property, either with low mortgage rates or no mortgage at all.