The market is expected to be positive in 2023, with buyers having more opportunities with lower prices and lower interest rates. There is a lot of growth and development in Ohio, and infrastructure is being built which will contribute to the growth of the real estate market. It is also expected that there will be 6% appreciation in values in the hotter neighborhoods. Now is the time to start looking at properties and get yourself ready to buy and sell in 2023.
Dave (00:04):
Hey there everyone! Dave Barlow here with Sell For One Percent Realtors and it’s a glorious winter season. I hope you guys had a good Christmas. Did Santa bring you everything you wanted there, Mike?
Mike (00:23)
Always does, man. Santa’s the man. Ask and you shall receive.
Dave (00:24):
Jaimerinski?
Jaime (00:27):
Yeah, it was a very good time.
Dave (00:31):
Did your cat get anything good for Christmas?
Jaime (00:38):
Got a lot of this!
Dave (00:40)
What’s that?
Jaime (00:41):
It’s Catnip. It’s not illicit drugs.
Dave (00:49):
Try to keep that cat under control.
Jaime (00:51):
Yeah. Trying to knock him out with a little catnip.
Dave 00:59):
That’s good stuff. Anyway, I wanted to wish everybody a Happy New Year. We got the big game coming up on New Year’s Eve. Ohio State, taking on No. 1 Georgia. I know that we’ll all be glued to the TV set watching that ball game.
I wanted to talk a little bit about what we are expecting for 2023 as we head into the new year. I’ll save my comments for last. I’ll let you guys talk about where you think housing prices will go, if they’re going to go up, down, or just the same. What do you think about interest rates and just the overall market expectations for 2023? Jaimerinski, I will start off with you.
Jaime (01:55):
Well, I am using a lot of props here. The bull.
Dave (02:05):
Ooh, you’re bullish.
Jaime (02:07):
I’m bullish. At least from what I’ve been seeing, there’s a lot of properties where if you’re in a bare market, you wouldn’t be going for the list price. I think interest rates have dipped here a little bit. Our trustworthy government’s predicting that it’s going to keep going a little bit down here into the first, second, third quarter of the new year. I think this physical asset that is real estate and investment that you can live in, it’s hard to shake that from being a good investment as more and more people kind of pour into Columbus and more jobs are coming up here. So I think we are well positioned in Columbus with our prices, population growth and interest rates coming down a little bit. So I’m bullish. I think it’s going to be a good year.
Dave (03:14):
All right. Mike, what do you think?
Mike (03:16):
I’m in line with Jamie. I think there’s a lot of opportunity for buyers who have been pushed out of the market for the past four years. Even though interest rates were low, you get a lot of people who couldn’t buy because they weren’t going to bring $50,000 out of their pocket to cover an appraisal gap. Well, the market has shifted quite a bit. What I’ve noticed in the past four months is that I’ve gotten remedies back in my offers, I’ve put a lot of deals back that were around $20,000 under list price. I think the market’s going to heal a little bit from the buyer’s perspective. I think there’s going to be a lot of great opportunities if you haven’t been able to buy.
Interest rates are much higher than they were, but if you can buy a property for a reasonable price at a lower price point than what it was two years ago, you don’t have to fight with 15 other people to buy it. You can keep all of your rights in your contract and you have a comfortable monthly payment. It sounds like a win-win for everybody. If rates go back down, you have the opportunity to refi anyway.
I think there’s a lot of opportunity. I think we’re going to hit the ground running. Inventories at a higher clip right now than it has been in the past three years, at the same point I expect that to go up.
Also, just to touch on what Jamie said, Columbus is growing at an astounding rate. We have a lot of large businesses that have their corporate offices here. People are going to continue to move here. Things are looking good, lots of infrastructure being built. It’s a great time to buy,
Jaime (04:49):
Date the rate, marry the house as they say. The rates will change, but the house is what it is.
Dave (04:55):
Well there’s a lot of things about not necessarily a house but a home. A house is probably something you rent; a home is something that you buy.
I sell lots of houses and usually the tougher ones to sell are those sellers whose homes are where their babies grew up in, they went to school in, went to high school, their first prom, their first date, etc. Those are the memories that you build when you buy a home. I think that we’re seeing a little bit of a transition.
I had a lot of buyers that couldn’t even get into the bidding war because they didn’t have $50,000 cash in their bank account. Those are the ones that are sitting on the sideline because they knew what they could buy for the interest rate a year ago. Around 50,000 people move into Columbus every year, and I think that pace will probably pick up as intel and some of these other companies move-in.
Everywhere you look, Ohio is evolving. Have you seen that hospital that they’re building for Ohio State? If you’re coming from north headed south to downtown, the curve looks right at that hospital and it looks like something out of Star Wars. It’s unbelievably large.
Mike (06:59):
You have the whole cardiology massive building that they built at Riverside Methodist too.
Dave (07:07):
I’ve got a friend who can’t build apartment buildings fast enough. As soon as he starts building them, they start leasing him and next thing you know, it’s fully leased by the time they get it completed. So I think the market itself is going to continue to be very good. It’s not going to be off the hook like it was last March where you put a house on the market, you got 80 showings, 20 offers and it sells for $50,000 over.
Another thing that I heard from a friend of mine is that the price of gravel is through the roof. They can’t get enough gravel out to the Intel plant. Even if you order a load of gravel, which is X dollars per ton, you can’t even get the gravel delivered, in a reasonable amount of time. Even if you are able to get it, the prices are through the roof.
I think like you guys, interest rates are probably going to hold steady, maybe go down a little bit. I think prices are going to probably level a little bit, but I think we’ll still see around 6% appreciation in values in some of the hotter neighborhoods. It’s going to be a good year for us as real estate agents to help people buy and sell. So I’m looking forward to 2023. I think it’s going to be a great year.
All right guys. I appreciate your time. Thanks!
