Laura Schwartz is a licensed Realtor in VA, D.C. and MD with McEnearney Associates in Vienna. You can follow Laura on Instagram at @LauraSchwartzRealtor or her Facebook page. Laura can be reached at 703-283-6120 or Laura@GuidingYourMove.com.
Happy New Year!
I woke up to an email this morning from the WSJ beating the drum that a recession is coming. Do you know what a recession is good for? Lowering interest rates.
Historically, a recession has resulted in falling interest rates to help spur economic growth. I have a Masters in Applied Economics from Johns Hopkins, so I love following the market trends over time to help me form an opinion on what is coming.
As a 15 year real estate veteran, I started during the 2008 recession and I have seen the market come full circle after the insanity of the last 2.5 years. I posted a prediction on the 2022 market and all of it came true, albeit I didn’t see the rates hitting 7% that fast, but I knew rates would go up.
So here are my predictions for 2023:
Interest Rates Will Decline
We’ve already seen rates hit 7% and come back down in the past few months. I think the rates will continue to decline, hopefully hitting 5% by the middle of Q3 of 2023. But remember this — as rates get lower, homes become more affordable for more people and that will spur more action in the market
Activity Will be Strong, Especially Towards the End of the Year
Activity began to pick up towards the end of 2022 as interest rates got better, and I think activity will continue to be good during the first half of the year. That said, I think the second half of the year will be even stronger than the first, mostly dictated by what rates are doing
Inventory will continue to be a problem. While the fear of covid is likely no longer keeping sellers from entering the market, I think you have some remorse from sellers who “missed” the craze of the pandemic, and a lot of people won’t want to give up their 3% mortgage rate, even if they hate their house.
Prices Will be Stable
Prices will continue to be stable, but pricing your home is #1 and #2 and #3 of how you will sell your home. Buyers are smart, they’re educated, and they’re tired. If a home is overpriced, it will NOT sell. If it’s overpriced and has any other strike against it, it will not sell. You *must* be strategic on your pricing.
If a house is “pretty,” which means updated and staged AND priced correctly, I still think we’ll see multiple offers potentially. Inventory is still low, so if it’s a desirable home, it’ll still sell.
Rent Will Rise
There have been so many news articles about rising rents. I think we’ll continue to see that in 2023 until big buildings start to see a slow down. If rates come down, and buyers can buy, why would they spend an extra $500 per month on rent?
If you are a first time buyer AND you make less than $129,600 (for 2 people or less), you can qualify for down payment assistance programs from the state to buy your first home (must be a principal residence). If you are renting and think you may qualify, read here for more information. There are all sorts of credits available if you do some research!
If you’re thinking of moving this year, it’s never too early to have a conversation to put a plan in place.
Good Friday evening, Fairfax County. Let’s take a look back at today’s stories and a look forward to tomorrow’s event calendar. 🕗 News recap The following articles were published earlier…
Reston Association is seeking candidates for its 2024 Board of Directors’ election. Four seats are open for the election, which will take place in March. Specifically, two at-large director seats…
Zombies, pirates and other virtual characters are about to be unleashed on Tysons, just in time for Christmas. Sandbox VR will launch its new virtual reality gaming experience at 1656…
Do the holidays have you stressed and busy? Worry not about what to wear as Live Fairfax has the Style Survival Guide for this season!
The Georgetown Visitation Masqueraders proudly present
Descendants The Musical
Art House 7 warmly welcomes you to our upcoming Fall 2 session of classes starting on October 30th. We’re thrilled to offer a diverse range of mediums and flexible class lengths, catering to a wide age range, starting from as young as 2, and, of course, providing a multitude of engaging options for adults!
Our classes cover an exciting spectrum of creative mediums, including fiber arts such as knitting, modern embroidery, crochet, and sewing. We also offer classes in ceramics on the wheel, drawing, watercolor, gouache, oil, acrylic, still-life painting, and captivating Japanese Suminagashi and printmaking. One of the highlights of this session is the highly anticipated 5-week “Painting the Portrait and Figure” workshop, led by the renowned local artist, Danni Dawson.
For our younger artists, we have specially designed classes like “Art Exploration through Impressionism” for students in kindergarten through 5th grade, an engaging “Art Together” parent-child class designed for 2–4-year-olds, and a “Teen Taught Art Club” tailored for kindergarteners through 4th graders.
Proceeds benefit Fellowship Square, improving the lives of 800+ older adults with very limited income and resources by providing affordable housing and supportive services.
Experience a festive holiday fundraiser complete with savory wines & craft beers, scrumptious hors d’oeuvres, exciting