Due to the Pandemic Housing Boom, the housing market has seen several ups and downs. Short supply and high demand for housing options had led to an appreciation of property values over the last 2 years. But with a lot of talk about a housing crash coming soon, many investors are now feeling unsure of where the market currently stands and how it will be in the coming year. So, without further ado, here are real estate market predictions 2023 that’ll help you plan and protect your investments:
Prediction 1: A Seller’s Market
A housing market prediction several experts agree upon is that it is going to be a seller’s market. With more demand and less supply, home prices are expected to keep rising for some time.
Prediction 2: Mortgage Rates
The mortgage rates have reached the 6% barrier making it very expensive to buy a house, or get a mortgage. While research firm Capital Economics is predicting that the house price rise is likely to slow down in the coming year, it is also forecasting that the mortgage rates could increase to 6.5%.
Prediction 3: Interest In Becoming Homeowners
Despite the high home prices and a predicted (albeit disputed) house market crash, the number of people interested in becoming homeowners remains high. The demand for homes will predominantly come from younger homebuyers and first-time homebuyers. This is likely due to the fact that property rental rates are now reaching record highs.
Prediction 4: Home Prices Might Sink
According to another stream of thought, real estate predictions show a decrease in home prices towards the end of 2023. But the values are expected to recover swiftly.
Prediction 5: Inflation
The current rising inflation rates will sooner or later lead to lesser consumer spending. This would invariably push us into economic instability, and possibly a recession.
How Can Investors Protect Themselves In These Unpredictable Times?
With varied and polar opposite 2023 predictions for real estate market, how does a real estate investor protect oneself from a possible house market crash? Here are a few tips:
Avoid Resident Turnovers
Extended vacancies can lead to extreme loss of revenue. You can reduce tenant turnover by:
- Avoiding big rent increases
- Responding to residents’ complaints and questions promptly
- Ensuring the rental premises are well maintained
- Giving incentives to residents to sign a longer duration agreement
Smart Investing
Thoroughly researching about a property is the first step towards smart investing. When you study the market, you know which properties are Cash Flow Properties. Investing in these will lead to positive cash flow, no matter what the market situation.
Choosing BFPM As Your Property Management Company
Not only can Beach Front Property Management maximize your rental portfolio, but can also optimize your rental property to increase your profits. The housing market will keep changing. To stay ahead of the curve, having the ability to adapt with the times will come in handy. What will also help is talking to BFPM property experts who can help you resolve all property related queries. To begin with, you can schedule a 15- minute consultation call with us.
Trevor Henson
Trevor Henson is an experienced entrepreneur (10+ highly-successful start-ups) and property investor with a demonstrated history of building and leading teams in investment property management environments, maximizing returns for property owners, and optimizing properties through construction management and re-positioning. He…Learn more about how we can help. Customized solutions for large portfolios!