Do you own a home in 2023? Even if you don’t, it’s not just real estate sellers that are curious to know what to expect throughout this year. A renewed focus on homeownership brought about by the pandemic changed the perspective of the population on home ownership. As a result, Dallas real estate sellers should be aware that this driving force is now cooling and consider adjusting their potential 2023 strategy. So read on as we explore what Dallas real estate sellers can potentially expect in 2023. Please note that this article is for informational purposes, not financial or legal advice and I’m not an economist.
Unfortunately, Dallas real estate sellers can expect new laws to come into play. Among some of the potential changes, there has been more of a focus on capital gains taxes, like-kind exchanges, and an additional surtax on net investment income (keep in mind this is dependent upon your income and marital status).
When it comes to taxes and the amount you will have to pay, this varies so much per person per situation. There are so many variables to go into it which I won’t get into here. Taxes always need to be considered before buying or selling off an asset, so it’s highly encouraged to speak to a CPA about your specific situation to see what type of tax hit you’d be looking at.
Besides inflation, rising interest rates are something else we’re all closely watching throughout this year. There are a few investors at the beginning of 2022 that believed rising rates would never slow down the intense market….they were wrong. I too would have believed the rates wouldn’t affect it if we hadn’t seen prices go through the roof for 2 straight years.
Home prices increased from $10,000 to $30,000 A MONTH during that 2-year period. Once we got to a point where interest rates were double what they were a year prior, buyers could no longer afford any home on the market. Home prices have been dropping with the rising rates, but they’re not dropping nearly as fast as they were going up. This is because demand still exists. It’s not nearly the same amount of demand, but with rates still rising throughout 2023, I’m fearful that the demand will continue to decrease.
If you’re considering selling and want to do so before interest rates increase even more, North Texas Cash For Homes can help! We buy homes fast and with cash which means we can close whenever you need us to. Give us a call to make you an offer!
Supply and Demand
Dallas real estate sellers, so far, have experienced a slowdown in the market, but not by much. Instead of sellers receiving 50 offers each on their homes, it’s now taking around 30 days (depending on the price point) to receive an offer that’s either at the listing price or it’s close. So naturally, prices are dropping a bit, but it’s mainly because sellers are still trying to list their homes for an unreasonable amount and are surprised when they don’t get it. We’re just not in that type of market anymore and we likely won’t be for a while.
With this slowdown, builders have drastically slowed down on building new homes. That has helped keep the market stable with a significant decrease in inventory. This has helped the market tremendously so far, but I’m concerned about how much it will continue to help throughout the 2023 market. We have without a doubt reached a more balanced market, but the feds plan to raise rates continuously throughout the year. Now interest rates don’t directly affect mortgage rates, but they do to a certain extent since mortgage rates can’t drop below that. So as rates go up, more jobs will continue to be lost, and more buyers (that could buy a house) will hold off because they’re too spooked by the current economy.
However, there is no time like the present. If you’re a seller, you should talk to us at North Texas Cash For Homes. We buy homes in any condition and in any market. We are not agents so we don’t list the property on MLS in search of a buyer, we ARE the buyers. We will make you a cash offer on the spot and will close whenever you want us to. Whether you want that closing date to be in 1 week or 3 months, we can make it happen for you.
While there may be a slowing in sales growth, and some markets may experience a slight drop in housing costs, real estate sellers can expect a VERY slow but steady continuation of rising housing costs in many markets after they are finished correcting themselves.
With builders slowing down on building homes and sellers slowing down on the thought of listing their homes, prices are going through a correcting phase right now. This always happens after a crazy hot market and it honestly needs to happen. We wouldn’t have been able to sustain prices increasing at that rate.
Sellers can expect the changes in the 2023 Dallas real estate market to impact the speed at which homes are selling and the ability of buyers to lock in a loan at the current rates. Sellers may wish to consider the decreasing number of buyers who can afford to buy as housing prices continue to climb and sell now.
If time is of the essence, the property needs work, or you don’t have any interest in the conventional listing process, acting as a direct buyer at North Texas Cash For Homes, we can buy homes in any condition and in any market through the DFW metroplex.
Millennials make up most of the Dallas real estate buyers, and sellers can expect an increased focus on the use of technology in 2023. If you should decide to list your home on the Dallas real estate market, give us a call and we’re happy to refer you to the top-notch agents in your area.
The home buyers at North Texas Cash For Homes know what Dallas real estate sellers can expect in 2023. So why not talk to a professional at North Texas Cash For Homes about your plans for selling and ask any questions you may have?
We’re happy to help calm your concerns, and you’re under no obligation whatsoever. Our policy at North Texas Cash For Homes is to keep the lines of communication open so that you won’t feel ignored. North Texas Cash For Homes and our full-service in-house team of industry specialists pride ourselves in taking care of our clients. Call North Texas Cash For Homes at 214-761-3150.