The housing and real estate outlook for 2023 is fairly bleak. Home prices are plummeting almost universally, with no regard for location or price bracket. Additionally, far fewer homes are being sold in general. On top of that – homebuyer contract abandonment towards the end of 2022 was even higher than in 2008!
What does this mean for you? It means it will be much harder to sell your home the traditional way, and that a cash offer from WeBuyHouses.com Virginia makes more sense than ever. However, before we get to that – let’s take a look at why house prices are falling.
Why Are Home Prices Plummeting?
Home prices are falling for a number of reasons, and they’re all at least somewhat interconnected.Interest Rates
If you’ve been following the news at all, or our blog, you already know that the Federal Reserve has launched some of the most aggressive rate increases since 2008 in the past months.
When the Fed increases rates, it directly impacts the percentage homebuyers will pay on their home loan. For instance, a loan to a well-qualified buyer in 2021 would be around 3%. As of January 2023, it’s closer to 7%.
This drastic increase in points on home loans means that the home-buyer’s monthly payment is substantially higher. As an example, a 300k mortgage in 2021 at 3% costs homebuyers around $1,250 a month. That same 300k loan at today’s interest rate levies a $2,000 monthly mortgage payment.
It’s easy to see how that increase could lead to our next factor…
Decreased Demand
A $750 a month increase in mortgage payments can make a home that was previously affordable simply unaffordable for many. Coupled with inflation, which means Americans need their dollars to go further than before, demand for homes has cratered.
Prospective homebuyers are now choosing a lower priced home, renting instead, or removing themselves from the market entirely.
Increased Competition
While eventually the amount of homes being listed will drop due to decreased demand, it hasn’t yet. It will in time, but that’s little comfort to those wishing to sell their home now. With the same amount of homes on the market and far less people to buy them, the market has begun to greatly favor the buyers – which means sellers have to slash prices to make their homes seem more appealing or affordable. Plummeting Home Value Means it’s a Great Time to Sell, Fast, for Cash!When you combine all these factors, it’s easy to see why homes aren’t selling like they were before. Sellers are discounting their homes rapidly to remain competitive with other sellers in the market, and even then they aren’t having any luck in selling their homes fast.
If you’re in a situation where you want to sell fast, what this all means is a better time than ever to choose a cash offer selling program, like what we offer at WeBuyHouses.com Virginia, to sell your home.
Here’s How The WeBuyHouses.com CASH Program Works
Our demand for homes has not decreased one bit! We’ll buy any home in any condition. With it being harder than ever to sell your home, here’s how to choose a better way!
Step 1: Contact the WeBuyHouses.com Virginia Team
Contact the WeBuyHouses.com Virginia team online or give us a call directly. We’ll work with you to find a convenient time to take a look at the property you want to sell.Step 2: Receive a Cash Offer
After we inspect your house, we’ll generate a a cash offer within about a business day.Step 3: Sell the Home!
If you like our offer, take it! You’ll have sold your home in record time. We’ll take it from here.
Don’t Let Falling Home Prices Derail Your Home Selling Plans
While it’s a common cliché, “You can’t time the market” rings true. No doubt about it – if you need, or want, to sell your home in Virginia – it’s a tough time to do it… unless you choose WeBuyHouses.com Virginia!
If you’re interested in getting a quote from us, get in touch. You can submit a contact request by filling out any of the forms throughout our site, or you can call us directly 540-202-2004. We’ll talk to you soon!
