2023 Bay Area Market Predictions – Like many cities experienced, the Bay area market has been hot over the past couple of years. There have been record low inventory levels and record high home prices all at the same time. Looking at the past couple of years makes you wonder what the 2023 market may look like for the bay area, so let’s take a look.
2023 Bay Area Market Predictions
Less Buyer Competition
Home buyers should experience less competition this next year. The market should be moving at a slower pace, which means prices should rise less rapidly and even may dip. While this happens and the inventory starts to even out, buyers may be able to find a more suitable property to fit their needs as opposed to this last year. This is helpful because there is a large number of residents in the Bay Area that have been priced out over the past couple of years. 2023 should be a good year for buyers who are ready and pre-qualified. Buyers will have more bargaining power as the market cools in this direction.
The median home value has been higher than ever and increased over the past two years. However, we are currently seeing a slowdown. Likely, things will slow down and level off regarding home prices. That doesn’t mean a buyer’s market, it just means home sale prices may not be as high as they have been. This can help reduce affordability issues.
Supply in the Bay Area is still tough. There is still more demand than supply, but as with everything else, the gap is improving. 2023 should bring about more available properties for buyers to choose from than those who purchased the past couple of years. Patience will be a buyer’s best friend as they navigate the shift and may take longer to look for their home.
As you take a look you can see that all of these factors are closely related and affect each other as well as the overall market condition. The Bay Area market is cooling off and getting back to “normal”. This just means that things should be less extreme and less competitive for buyers.
The real estate market can change a lot, so it is important to stay up to date if you have your hand in the market or are planning for the future of your family. Whatever your Bay Area real estate needs are, we are here to provide you with our expertise. If you are looking to buy or sell real estate in the Bay Area, contact us.